Comprehensive Online Business Insurance
Tailored PI, Office, Public & Employers' Liability Insurance
Are you covered? Read our Essential PI Guide
Get a Quote and buy online in minutes

54% of businesses have no written business plan

print  e-mail 

The majority of Britain's small and medium-sized businesses are operating without a written business plan endangering their future prosperity and survival, according to research carried out by PKF Accountants and business advisers.

While 45% of businesses claimed to be working to a plan, 46% said they had a strategy but no plan, and 9% described themselves as having no plan at all. The most common reason given for having no plan was that the 'owner makes the decisions' (25%), followed by 'no time to formulate a plan', 'just moving the business forward' and that 'the company is reactive' – each on 17%.

Encouragingly, 65% of the companies interviewed said they were projecting growth of up to 25% in 2007 while a further 23% anticipate even greater growth. Nearly a third of companies (31%) said they were planning to make one or more acquisition in the year ahead with the majority of these (66%) looking to acquire a competitor.

PKF Corporate Finance Partner, Mark Lister welcomed the level of confidence among SMEs but sounded a note of caution. "The research findings suggest that businesses are riding the wave of relative economic prosperity in the UK but many appear to be forgetting some business basics", he said.

"Businesses need to balance their drive for growth with ensuring that strategies for tackling tougher times are in place. Recent interest rate rises should sound a warning that favourable economic conditions should not be taken for granted; Managing Directors need to plan for the future so that their businesses are capable of surviving and thriving during leaner periods too."

"Equally, with so many companies planning acquisitions, it is important that any acquisition strategy is supported by a robust business plan identifying the criteria for target businesses and how they will be integrated into the existing business as well as covering the strategy for current operations going forward."

"Effective planning is critical when building a successful business and, while companies can succeed without proper planning, the most effective are generally those that are aware of the opportunities and threats in the marketplace so that they can plan how to achieve targets and monitor their progress. Growth is generally good for business but companies need to understand the implications so that they don't create 'boom and bust' situations."

Posted April 10, 2007

Click Here
Latest articles in Latest News
 
Startups 100 list reveals the UK's most exciting new companies
The 'Startups 100' list was announced last week, identifying the country's most innovative, inspiring and ground-breaking new businesses. [September 1, 2010]
 
Small companies reap benefits of social networking
A worldwide study of 15,000 businesses shows that small companies have been much more successful at harnessing the power of social networking sites than their larger rivals. [August 5, 2010]
 
Company directors warned over taking illegal dividends
A growing number of company directors are declaring illegal dividends or loans, according to a leading accountancy firm. [August 4, 2010]
 
One in three graduates plan to work for themselves
New research suggests that the lack of traditional opportunities available to university leavers has led to a significant proportion of graduates planning to go it alone. [July 29, 2010]
 
Business angels use gut instinct when choosing investments
New research has shown that Angels Investors (high net worth individuals who invest money and knowledge into companies who require funding) mainly follow their intuition ahead of financial calculations when deciding whether to invest in a company. [July 26, 2010]
 
Small business confidence "still fragile"
A recent survey suggests that business confidence has declined over the second quarter of 2010, suggesting that the recovery remains fragile and more efforts should be made to encourage private sector growth. [July 23, 2010]
 
Limited company formations rise following two year slump
The number of new companies has started to rise again following two years of steep falls caused by the banking crisis, according to a Top 25 accountancy firm. [July 13, 2010]
 
Number of business insolvencies down over 10%
The latest PwC analysis into corporate insolvency numbers shows that the effect of the downturn on UK business is showing more signs of easing. 3,467 companies became insolvent in the second quarter of 2010. [July 7, 2010]
 
Vince Cable heads up new committee to slash red tape for small businesses
Vince Cable has chaired the first meeting of a new tough Cabinet committee, tasked with the job of slashing the amount of red tape small businesses have to deal with. [July 5, 2010]
 
Small businesses warned to expect public sector contract cuts
Companies who have contracts with the public sector are being urged by the ICAEW to prepare for possible cuts. Includes a contract review checklist for small companies who may be affected. [June 7, 2010]
 
Most entrepreneurs expect to increase number of employees in 2010
New research has revealed the important role Britain’s leading entrepreneurs will play in helping to offset the inevitable job losses which will take place in the public sector over the next few years. [May 21, 2010]
 
Coalition unveils plans to cut red tape and encourage small businesses
The new coalition government has unveiled a more comprehensive summary of its "programme for government", which contains many plans which could benefit the UK's small businesses. [May 20, 2010]
 
Cutting the UK's budget deficit the key priority for small business owners
Two major surveys show that small businesses are overwhelmingly in favour of making tackling the UK's budget deficit the key priority for the new government. [May 19, 2010]
 
Entrepreneurs 'pessimistic' about the outlook for businesses in 2010
The UK’s entrepreneurs are pessimistic about the business outlook for 2010, and scathing of the Government’s efforts to drive small business growth, according to a new study. [May 7, 2010]
 
Most small companies think UK tax system is too complex
The vast majority of the UK's small companies feel that the current tax system it too complex, and would like to see it simplified, according to a major survey of over 2,000 business owners. [May 4, 2010]
 


Click Here




Our Partners
Key Services
Key Services
Useful Guides
Archived News
Click Here