Half of business owners have been found to believe that preparing a long-term business plan is a ‘waste of time’, according to a recent survey.

In the survey carried out by Moore and Smalley Chartered Accountants and Business Advisers, business owners are cautious about the uncertain future and have found it difficult to forecast what will happen over a longer period.

One in five companies have however, said that they have a five year plan in place, including an exit strategy, while the same amount had a three year plan in place.

Corporate finance director at Moore and Smalley, Stephen Gregson, says that the poll’s findings have worrying implications for businesses although it is encouraging that some businesses are planning longer term.

“A clear strategy detailing what you’re going to do and when is essential to any successful business. It’s the route map showing how you will take your business from where you are now, to where you want to be in three to five years’ time.

“Markets are changing all the time and a business plan needs to be flexible enough to enable a business to respond to those changes. However, without strategic objectives, business owners are at risk of getting suck into day-to-day issues because they lack the forward vision to plan their activities and delegate effectively.”

A strong business plan is also key to securing business funding as investors are more likely to be impressed by a plan that gives evidence-backed information on how business owners intend to develop their business.