Businesses risk stunting their growth by failing to construct a detailed strategic plan, a survey shows.
The survey, by accountants PKF, shows that nearly a quarter of small businesses in the UK have not developed a strategic plan, while only 16% have a plan based on the development of new products or services.
The worst offenders were founder-managers, a substantial 41% of whom have forsaken a strategic plan.
Regionally, London came out worst off with 22% declining to log measurable objectives and a clear time frame.
However, London was found to be the most innovative center in the UK, with 19% of firms opting for the 'new products for new markets' growth strategy.
The North of England came a close second with 17% adopting this strategy, while East Anglia and the rest of the South East were the least innovative regions, accounting for only 3% each.
PKF said the results indicated that businesses were reluctant to invest in the comparatively 'risky' growth strategy of new product development and instead focus on finding new markets for existing products. The survey shows that six in ten of the 600 respondents preferred to grow this way.
Toby Stephenson, partner at PKF, said: "SMEs who fail to plan are doing themselves no favours. Without a clear plan, companies are forced on the defensive, or to adopt strategies which are price driven.
"Forty four percent of those without a plan used a low cost base to underpin a price-driven position and, while this may provide market growth in the short term, it is a tenuous basis for continuous competitive advantage."
