According to the data, one in five Australian businesses struggle to innovate and create meaningful strategies. This is mostly blamed on a lack of funds, but can also be attributed and traced back to an insufficient business plan.
A business plan is one of the fundamental documents for an organisation and can be an excellent tool for managing funding. You are able to budget across the board and have an understanding into what investments are possible in certain areas.
It is then possible to create innovation and take advantage of the opportunities that present themselves.
ABS Representative Sue-Ellen Luke explained there was another area that poses problems for both small (5 to 19 employees) and medium (20 to 199 employee) businesses.
“A lack of funds was one barrier, and another was a lack of skilled people – either in the labour market or in the business – which affected around a quarter of small and medium sized businesses,” she said.
“For the purpose of innovation, almost 60 per cent of innovation-active businesses are sourcing ideas or information from within their businesses, and 40 per cent get ideas from clients.”
Business plans can pinpoint what key skills are required by the company as it develops. This could include recruiting IT specialists to handle cloud computing and security, or accounting personnel who are up-to-date with taxes and payroll specifications.
By planning what you will need in advance, there is less chance your innovation can be stifled moving forward.
For business innovation to spark, companies should take responsibility for fund allocation and recruitment.
Although these areas can be difficult to manage for small businesses, a solid business plan will set you in the right direction.