The National Australia Bank’s Business Planning Survey has revealed that SMEs are becoming complacent about planning for the future, with 40 percent failing to complete a business plan.
Despite being faced with an uncertain economic future, 32 percent believe that they are too small for a business plan, 21 percent lack the time to write one and 15 percent believe they don’t need one. Victorians have become the most complacent, with an astounding 80 percent of small business owners failing to plan for the future of their business.
According to Geoff Greer, regional general manager of Business Banking Australia, it has never been more important for Australian businesses to plan for the future and if they fail to adequately protect their business, they may struggle in the year ahead.
“Australian businesses are taking a big risk if they enter 2009 without an up to date business plan. As business conditions plummet and belts tighten, small businesses need to plan for unsteady times ahead.”
He gives the following advice for small businesses starting a business plan: review trading cycles, costs and expected cash-flow; get support and advice from business peers; undertake a SWOT analysis of your business and consider your market.
