the business ladder

New research indicates that 68% of small businesses do not have a formal business plan written down 'on paper', seemingly abandoning conventional practice and wisdom.

SimplyBusiness.co.uk's report discovered that over half of small businesses admitted to relying primarily on gut instinct when making key business decisions.

Chief Executive of SimplyBusiness.co.uk, Jason Stockwood, commented: “Limited time and resources are characteristic of growing businesses, and the recession will have stretched UK entrepreneurs further than ever before – understandably, many have become so focused on working in the business, that their time working on the business may have suffered as a result."

He continued, “Those entrepreneurs left standing have successfully managed their firms through the credit crisis, but cannot now afford to expose their companies to easily avoidable risk.”

The report also indicates that many small businesses are not committing enough time to employment and legal issues. 21% of those surveyed admitted not having formal contracts for permanent employees and almost 80% have no member of staff responsible for human resources.

Mr Stockwood added: “Small businesses are subject to just the same strict labour laws as big businesses but would be a lot less capable of weathering costly legal action. It is vital small business owners have the necessary employment structures and guidelines in place to protect their businesses.”

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