The UK’s small and medium-sized enterprises (SMEs) are more profitable with a business plan than those without, according to new research by business and finance software provider, Exact.
Up to 70 per cent of firms with a plan made a profit, compared to 52 per cent of businesses without a business plan.
The report was conducted to provide a better understanding of some of the many challenges SMEs face in achieving their business goals, with ‘increasing profits’, ‘increasing revenue growth’, and ‘attracting new customers’ cited as the top three goals.
Worryingly, more than a third (34 per cent) of small business owners surveyed said they did not have a business plan in place, with 68 per cent of these citing the reason as ‘I don’t see the need’, with a further 10 per cent saying ‘I didn’t know I required one’.
Lucy Fox, general manager of UK cloud solutions for Exact, said: “The findings clearly show there are many SMEs that are missing out on the added value a business plan can offer, the consequence being that many may be failing to reach their full growth and business potential as a result.
“While the results should serve as a bit of a wake-up call, they also highlight that more needs to be done to address some of the misconceptions over what is involved in the planning process.
“Many don’t seem to realise that with the help of a trusted financial advisor, like an accountant, creating a plan can be done easily and the benefits can be enormous.”
At TaxAssist Accountants we believe a good business idea needs a good business plan with sound financial information and a strategy to help the idea become a reality.
If you are looking to create and present a credible and professional business plan then talk to your local TaxAssist Accountant today. Call our friendly team on 0800 0523 555 or fill in our simple enquiry form.
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