Almost a third of small to medium-sized firms in the South East don’t have a business plan in place, according to the latest research by Close Brothers Asset Finance.
Of those that admitted they do not have a business plan, the majority (53%) say they don’t believe it is necessary, while over a fifth say they prefer to keep plans in their head and a further 16% claim that it just isn’t a priority for them.
The figures are drawn from the results of the latest Close Brothers Business Barometer, a quarterly survey that canvasses the views of small to medium-sized business owners and senior management.
Commenting on the findings, CEO Mike Randall said: “It is somewhat concerning that so many firms in the region do not have a business plan as without clear direction they may be missing out on opportunities for growth.
“Planning is key to any business throughout its lifecycle. A formal plan can be an extremely valuable tool for managing and growing a business.”
The Close Brothers Business Barometer also showed that of those firms in the South East that do rely on a business plan, 58% review it at least once a year while 11% review it once every two years. A further 16% only review it once every two to five years.