Formal Business Plan Essential for Success
Despite the widespread belief that a formal business plan is essential for success, new research from Adobe Express reveals that only one in five small businesses actually have one in place. Yet, many SMEs are still thriving, suggesting that while structured planning can be helpful, it isn’t always a prerequisite for achieving business goals.
The survey found that just 20% of UK business owners, both new and established, have developed a detailed business plan. An additional 47% operate with only a basic outline, 23% are currently working on one, and 10% have no intention of creating one at all. This lack of formal planning, however, doesn’t appear to be holding many businesses back.
Confidence remains high among small business owners, with the majority reporting strong performance over the past year. According to the survey, 15% of respondents significantly exceeded their annual targets, 41% moderately exceeded them, and 14% met them. Only 5% fell short. Looking ahead, optimism is also strong: 23% of business owners say they are “extremely confident” about achieving their 2025–26 goals, 39% feel “very confident,” and another 27% report being “confident.”
At the same time, entrepreneurial interest in the UK is rising. Nearly half of UK adults (47%) are considering launching a business or side hustle in 2025, up 12% from the previous year. However, planning remains a lower priority for many aspiring entrepreneurs, which could present challenges down the line.
Top concerns among SME owners include the broader economic climate (25%) and the need to keep up with rapidly evolving technology (12%). Interestingly, a significant portion, 27%, aren’t currently using any AI-powered tools to support their business planning. Of these, 11% said they simply aren’t aware of any AI tools that could help them build a plan.
Sector-specific results from the Adobe Express research also shed light on varying levels of success. Businesses in the environmental and agriculture sector, along with those in media and internet, were standout performers, with 50% in both sectors reporting they significantly exceeded their annual goals. Most sectors, in general, performed well.
However, legal businesses reported mixed results, with 33% falling slightly below their targets. In hospitality and events, 17% also said they were behind on goals.
The creative arts and design sector revealed more troubling data, with 8% of firms claiming they were “significantly” under target. In contrast, businesses in accountancy, banking, and finance performed well—24% significantly exceeded their goals, 28% moderately exceeded them, and 24% met their targets.
Still, 11% of respondents from this sector admitted to having “no confidence at all” in their business plans, a striking disconnect between performance and perception. Interestingly, 24% of respondents in this group were new businesses.
Overall, the findings suggest that while formal business plans can be valuable, many SMEs continue to perform strongly without them. Confidence, adaptability, and sector-specific dynamics appear to play equally important roles in business success.
