A new report which looks at barriers to growth for entrepreneurial businesses has revealed 70% of companies are only planning nine months ahead, despite ambitions to launch new products and services and three quarters lacking confidence that their strategy is future-proof.
According to BDO’s The Ambitious Entrepreneur: Tackling Your Barriers to Growth Report, two fifths of the companies surveyed are only planning six months ahead, which means they only have visibility until March next year.
More than three quarters of companies shared they’re likely – to some degree – to test out new business ideas or innovate this year and next, but 21% recognise a lack of planning will prohibit this innovation.
Laura Stuffins, director at BDO LLP in the North West said: “Ambitious, entrepreneurial businesses underpin our regional economy across all sectors and will be key to the UK’s future economic prosperity, as well as a driver of levelling up. It’s concerning but not surprising to see so many struggling to strategically plan more than six months in advance.
“The last 20 months have demonstrated that plans need to be flexible. For this type of business, it is often their agility which gives them a competitive advantage. However, creativity alone won’t sustain innovation and there needs to be a firm focus on planning and commercialising ideas if businesses are serious about growth and not losing ground to competitors.”
BDO’s research found that a third of respondents try to handle operations, growth, funding, talent and compliance internally with their existing team.
Laura Stuffins concluded: “When speaking to these businesses in the North West, the ambition and talent is clear. The region’s dynamic businesses already face disproportionate challenges when it comes to issues like funding, talent and navigating red tape, but are consistently creative in overcoming these barriers.
“I’d urge the entrepreneurial businesses in the North West not to get in the way of their own potential by taking a short-term or inward view and seek the support they need to build a longer-term strategy that will allow them innovate and to maintain a competitive advantage.”