Springtime is the ideal season for a small business to grow, but too many firms fail to plot a strategy, according to the government’s support service.
A poll of Business Link advisers and analysts found almost unanimous agreement that spring is the prime season for ambitious entrepreneurs to begin thinking about their company’s growth; however, less than half actually give it thought.
Respondents claim that some 39% of small businesses looking to move on to the next stage attempt to do so with an incomplete business plan, while a further 36% do not understand the financial implications of their endeavour.
Both were tipped as the most important factors to consider when attempting to expand.
Entrepreneurs are also hampered by a lack of research into their market, the poll found.
“Growing your business is an important step and like starting up, requires thorough research and planning,” said Mark Holden, programme and strategy director of businesslink.gov.uk.
“As well as looking at the financial implications like borrowing or investing in new premises, businesses need to consider how growing will effect every part of their organisation, especially its people and culture.
“Even for well-established organisations, the consequences of an expansion going wrong can be costly.”
Spring is optimum for growth in the leisure and retail sectors, Business Link said, but research has shown that business services and construction are growing as some of the hot sectors in which small firms are looking to expand.
