It’s not just Burton Sweet who believe in business planning. Recent research has suggested that failure to plan could be costing Britain’s small businesses up to £25bn a year.
According to research by the Centre for Economics and Business Research (CEBR), over a quarter of SMEs in Britain (26%) are risking their financial wellbeing by failing to follow a business plan. These firms are tending to operate without any objectives, revenue targets or a plan to manage cash flow.
Why create and follow a business plan?
Implementing a business plan can have an extremely positive effect on revenue and growth.
The research found that over half (51%) of the UK’s best performing SMEs are working to a detailed business plan, and anticipate an increase in their expected year-on-year revenue growth as a result
Laura Holdgate, Senior Economist at CEBR, said:
“The research suggests that more effective business planning among the UK’s SMEs is directly linked to better business performance. SMEs have the potential to experience higher turnover growth as a result of more effective business planning, in turn boosting UK plc.”
Effective business planners also expect to see higher revenue growth than average (e.g. 8.2% instead of 6.6%), according to CEBR. This equates to a potential increase in revenue of £25bn above the norm. For the smallest businesses, the increase in revenue from more effective business planning could equate to thousands of pounds per year.
Speak to your Burton Sweet adviser now
Speak to your Burton Sweet adviser about creating a workable business plan for your own business, or contact Geoff Cole, Managing Partner, on firstname.lastname@example.org, to discuss the matter.