As many as 16% of small- to medium-sized manufacturing firms across the UK don’t have a business plan in place, according to the latest research by Close Brothers Asset Finance. 

Of those that admitted they do not have a business plan, the majority (42%) claim that they don’t have the time to create one while a third claim that it just isn’t a priority for them.

The figures are drawn from the results of the latest Close Brothers Business Barometer, a quarterly survey that canvasses the views of small- to medium-sized business owners and senior management. 

Commenting on the findings, Steve Gee, managing director for the Industrial Equipment Division at Close Brothers Asset Finance, says: “Without a business plan in place, firms run the risk of missing out on opportunities for growth and they could fall short of reaching their optimum performance.

“Planning is key to any business throughout its lifecycle and it’s particularly important for manufacturers. A formal plan is a valuable tool for assessing the current and future needs of your business, including contracts, equipment and other resources.”

The Close Brothers Business Barometer also showed that of those manufacturers that do rely on a business plan, almost two-fifths review it at least once a year while 17% review it once every two years. A further 15% only review it once every two to five years.

“While having a plan may bring benefits to an organisation, it is equally important that it is regularly reviewed to ensure that it meets the current and future needs of the business. In doing so firms can identify opportunities for operational improvement and better adapt as the industry develops.

Steve Gee continues: “Of the companies we talked to that do have a business plan, the majority said they believe that financial strategy is the most important aspect, and with 51% of manufacturing firms planning to invest in their operations in the next 12 months, it is more significant than ever.

“It’s vital that business owners take the time to review their financial strategy to ensure they have the right funding in place to meet the needs of their business, whether it’s new contracts or the purchase of capital equipment.”