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

Grow your business exponentially in 2022!

Discover the right strategies to build a more structured, efficient and profitable businesses at The Adviser’s 2022 Business Accelerator Program.

Visit the website here to secure your ticket.

Latest News

The percentage of young adults looking to pay down their home loans has risen over the past five months, according to new data. ...

Despite the Reserve Bank digging its heels in on the timing of its cash rate climb, Westpac economists have predicted the right conditions w...

Customer-owned banks operate around four branches per $1 billion in assets, while the big four collectively run less than one shopfront per ...

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!

When do you expect the cash rate to start increasing?

Website Notifications

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