Home featured time to plan concept on blackboard background Featured Management Managing Featured Australia’s small businesses: optimistic or foolhardy? Guest Author November 2, 2015 One of the requirements for businesses to secure a bank loan is to have a formal business plan in place. According to the State Government of Victoria’s Business Victoria website, “When applying for a business loan, it’s essential to prepare a detailed business plan and fully inform the lender about your proposed venture. This information helps the lender to provide you with the right type of finance and advice.” However, new research from DBM Consultants’ Business Financial Services Monitor (BFSM) shows that having a business plan is not the norm for most micro and small businesses across Australia, with only four in ten small business having a business plan, and micro businesses trailing behind with only one in five. With these figures equating to an astonishing 77 per cent of businesses* not having a business plan, let alone a marketing plan (86 per cent), it’s an indication that small and micro businesses are either optimistic about the future of their business, or are too busy dealing with the day-to-day aspects of their businesses. Whilst the majority of Australian businesses are very small, and quite a few don’t borrow money, it’s important for businesses of all sizes to recognise the importance of having a business plan as not only does it serve as a compliance document, but it gets people actively thinking about and documenting where they