Report finds that strategy is vital for SMEs

A new SME report has found that taking time out to plan a detailed strategy is vital for business growth.

The report by GrowthAccelerator found that forward planning put Newcastle based companies 8 months ahead of where they would have been.

However, more than one in ten of small-medium enterprises in Newcastle cited finding time to take a step back was a challenge to their growth prospects.

42% of those taking part in the survey stated that they spend most of their time on day-to-day work, finding only two hours per week to lead their company.

The report, entitled ‘Working On, Not In’ found that 60% of firms which had paid for professional support to take time to work on their business found it ‘very helpful’ or ‘invaluable.’

Among the findings of the report was that only 21% of businesses in Newcastle currently have a business plan that they review frequently and that 21% business leaders in the area spend most of their time on HR.

Colum Smith, regional lead for the North East at GrowthAccelerator, said: “Many business owners are consumed with the day-to-day running of their company, particularly if they feel they are under resourced or managing change in the current economic climate.

“However, whilst operational effectiveness is of course important, business leaders who want to achieve growth need to plan for it.”

“A detailed strategy and plan can align management and allow a business to move forward, seize opportunities and unlock their potential, which could remain hidden if they simply focus on working in, not on their business.”

“With 63% of decision makers in Newcastle agreeing that at times they’ve been unsure of the best route to take when growing their business, external support can provide that much needed sounding board and confidence booster to making informed decisions.

“And while it can feel like there aren’t enough hours in the day, this research proves that those who are investing this time are reaping the most rewards.”