Powered by MOMENTUM MEDIA
subscribe to our newsletter

SMEs more driven in 2015

Small- to medium-sized enterprise owners are more focused on business planning in 2015 compared to last year, according to a new study by accounting firm RSM Bird Cameron.

The firm’s ThinkBig annual insights survey of 446 business owners revealed 82 per cent of respondents have completed a financial plan this year, up from 78 per cent in 2014.

Four out of five said they are focused on their business goals this year, against 64 per cent last year. Meanwhile, nearly three-quarters (73 per cent) have an action plan in place this year, compared to just over half (57 per cent) in 2014.

“RSM Bird Cameron’s experience suggests businesses that have a plan outperform those that do not plan,” the firm’s national head of business solutions, Andrew Graham, said. “This is also reflected when comparing business planning with revenue growth.”

Of those who completed a business plan, 56 per cent achieved growth while just 13 per cent experienced a decline in revenue, according to the survey.

Advertisement
Advertisement

By comparison, of companies that did not complete a business plan only 36 per cent reported growth, and 24 per cent reported a decline in revenue.

“This reinforces the need to complete a realistic business plan, since careful planning has been proven to be closely associated with revenue growth,” Mr Graham said.

“Therefore, business owners who complete a plan are more likely to both achieve growth and secure finance, which would justify an increase in optimism for those business owners.

“There is no single format or rigid template for a business plan. What is important is that SMEs give thought to their direction and focus, and that they do it on a regular basis.

“Furthermore, a solid and detailed business plan is essential when it comes to obtaining finance, particularly given the banks’ tight approach to lending. Reporting requirements may make it close to impossible to obtain finance without a clear business plan.”

PROMOTED CONTENT


SMEs more driven in 2015
mortgagebusiness

Are you a new-to-industry broker in the process of growing your business? Then there’s some great news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights into cutting-edge tools, strategies and processes to fast-track to success. Don’t miss your chance to attend. To secure your FREE place, visit newbroker.com.au now!

Latest News

The IMF has urged Australia to consider reforms around housing supply and lending standards, citing apprehension around the upsurge in prope...

Treasurer Josh Frydenberg has backed the net-zero emissions by 2050 target, warning failure to comply will hurt banks’ access to capital a...

The regulator is set to release information setting out how it would use macroprudential policy tools, after expressing concerns around the ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.