Entrepreneurs in the UK are taking a gamble by failing to plan sufficiently during the recession, it has been claimed.
A survey by Lloyds TSB, which canvassed the opinion of more than 500 small business owners turning over up to £15m, found that more than a quarter of them felt the economic downturn had no bearing on business planning.
A further 26% said they were too busy to review their business plans, while a third did not even have a plan in place. Almost half of those without a business plan said they had never had one and didn’t see the need.
However, John Maltby, managing director, Lloyds TSB Commercial, warned business owners that planning ahead could help them spot new market opportunities as well as prepare for future challenges and in fact it had never been more
important.
“Too many businesses turn a blind eye to planning but just now it is vital that businesses get back to basics and take the time to think ahead,” he said.
Maltby added that business plans were just as important for growing businesses as they were for start-ups.
“Drawing up an effective business plan is critical to starting a business but is also a vital tool to manage a business through its ups and downs when it’s established too.”
The research also found that almost half of small businesses do not see planning as a priority, and 28% preferred to adopt a reactive approach.
© Crimson Business Ltd. 2008