Posted:02-March-2009
FRANCHISES not planning ahead despite DOWNTURN
Britain’s franchises are taking a chance on their survival in the economic downturn by failing to use a business plan, according to research released by Lloyds TSB Commercial.
The survey of more than 500 UK businesses with an annual turnover of up to £15million, reveals more than a quarter (26 per cent) feel the current economic climate has no bearing on business planning, while another quarter (26 per cent) say that, despite seeing the relevance, they are too busy to review their plans.
And many franchises may be choosing to ‘fly blind’ with more than a third (34 per cent) of respondents saying they do not even have a business plan in place.
Nearly half (46 per cent) of the small businesses surveyed don’t see business planning as a priority or feel other issues take precedence like dealing with everyday challenges (43 per cent), staff performance, training and salary reviews (25 per cent), and developing new products and services (21 per cent).
Nearly half (42 per cent) of respondents who don’t have a business plan said they have never had one and don’t feel it is necessary. More than one in four (28 per cent) prefer a reactive approach, saying they know their business inside out and can deal with issues as they happen. Twelve per cent claim to be stretched for resources, blaming time pressures for lack of business planning.
Richard Holden, Head of Franchising, Lloyds TSB, says: “It has never been more important for franchisees to plan ahead, not only to be prepared for potential challenges, but also to be able to seize opportunities.
“Too many businesses turn a blind eye to planning but just now it is vital that businesses get back to basics and take the time to think ahead. Drawing up an effective business plan is critical to starting a franchise but is also a vital tool to manage a business through its ups and downs when it’s established too.”
The research also showed nearly half of all businesses (46 per cent) said they would like at least some help writing their business plan; from choosing the best structure and content to more comprehensive guidance from start to finish.
To help franchisees get ahead through business planning, Lloyds TSB Commercial, in association with Sage (UK) Limited, one of the UK’s leading suppliers of business software and services, is offering start-ups several easy-to-use business planning tools, whether the business is a new start-up in its infancy or a well-established company.
Sage Planning for Business software supports people through the step-by-step process of planning and launching a new franchise, providing guidance on every aspect of setting up a business, from producing a professional business plan to forecasting income and expenditure.
Lloyds TSB is also offering a free 90 day trial of Sage Start-Up – a day-to-day accounts package specifically designed for new businesses. And Lloyds TSB customers can sign up for Sage Instant Accounts software – an accountancy package suitable for people who have experience running a business and have a good understanding of finance and accountancy.
For more information please visit www.lloydstsb.com/sage or call the Sage helpline on 0845 245 0259.
