News Article - 24 May 2012
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Business planning is being overlooked by many small and medium-sized enterprises (SME), a study has shown.

As a result, research conducted by Business Link found that numerous companies may go on to receive an unfair price if they sell their enterprise because they have not considered succession planning.

Of the 65 businesses surveyed, around 90 per cent were shown not to take account of business transfer, with a further 30 per cent saying they were too concerned with setting up and running their business to think about succession issues.

More than a quarter of respondents said they thought the company would be passed on to another family member.

Jonathan Hollow, from businesslink.gov.uk, said: "Businesses need to think about their long term strategy for succession from very early on.

"Passing on a business to a new generation or party can be a delicate and complex process."

Small business owners could reap rewards for putting time and effort into planning for their business' future, he added.

According to the website, business planning can make a difference to how fast and how much a company can grow.

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