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Small firms rely on planning not luck

Luck does not play a big role in a firm's success according to nearly 3 quarters of small business owners, research by software provider Sage has found.

In a survey of more than 1,000 UK small business owners, just 28% of respondents felt that luck had a bearing on their success.

Effective planning - for growth and unexpected emergencies - was seen as a top priority for business owners.

Other findings from the study include:

  • poorly-performing SMEs cited back luck as one of the top 3 causes
  • good luck did not feature in the top 5 contributing factors for businesses performing well
  • 74% of companies reported good business performance in the last year; of these, 77% reported making a profit
  • good customer service, a solid business plan and sound knowledge of the business's finances and suppliers were cited as the most influential contributors to success.

Claire Carter, head of Sage's online payroll software Sage One, said:

"With growth comes opportunity, but you have to be ready to take advantage of it. Luck will only take you so far. But if you have a good understanding of your firm's finances and operations you can act decisively with confidence and turn a situation into a lucky one."

Contact us to discuss your business planning or payroll concerns.