Ineffective Planning Could Cost Small Businesses £25bn in 2016
More than a quarter of UK small firms don't have a business plan in place and are putting revenue and cash flow "at risk"
Poor planning could see UK small businesses lose £25bn in revenue in 2016, according to latest research from the Centre for Economics and Business Research (Cebr) on behalf of npower Business.
Surveying 1,035 small business owners across the UK, the research found that companies with a business plan in place were more likely to achieve revenue growth in the New Year than those that did not.
While 26% of the small firms surveyed said they did not have a business plan, 51% of the “top performing” businesses surveyed said they worked to a detailed business plan and anticipated a 8.2% increase in revenue growth in 2016 “as a direct result” – 1.6% higher than the revenue growth expected by the “average” small firm next year.
Laura Holdgate, senior economist at Cebr, said of the research:
“Small and medium enterprises have the potential to experience higher turnover growth as a result of more effective business planning, in turn boosting UK plc.”
Phil Scholes, head of npower Business, added: “Effective planning is essential for small businesses who are the backbone of the UK economy. Being in better control of their finances and the risks and opportunities facing their business enables them to make better, more effective decisions.”
For information on writing a business plan, take a look at our free guide here.