BUSINESSES with a strategic plan achieve 50 per cent more revenue and profit growth than those with no formal business plan, according to research.

However, Business Link Wessex, which advises businesses in Dorset, Hampshire and the Isle of Wight, has found that many companies are put off going through the exercise because they think it will be daunting.

Business Link Wessex business adviser manager Reg Bodman has highlighted why businesses should invest time and money in a business plan and has come up with an easy-to-understand guide:

Why you need a plan. If created properly it will identify problem areas, provide a framework for identifying future direction and areas for development, encourage management to consider future strategy, compel the team to consider its strengths and weaknesses objectively, provide a basis for analysing new and existing products/services and communicate the company's prospects to potential investors.

KISS Keep It Simple Stupid. A business plan does not need to be complicated, says Mr Bodman.

The key is to keep your plan simple, accurate and useful think of it as a map, describing your current business situation, what you want your business to achieve and how you can achieve it.

Your business plan is a method of anticipating and managing potential problems and represents a compromise between what you want your company to achieve and what it can achieve.

Where are you now? An in-depth understanding of the current business position and the wider industry issues are essential to business success.

Gain a thorough understanding of your current position by analysing your company's financial situation, marketing, personnel and administration procedures. Analyse your competitors, trends and existing and potential opportunities.

Where do you want to be? Clear objectives are crucial to businesses of all sizes. Start by defining the purpose of the business and then identify a range of goals to be addressed over an agreed period of time. Move on to defining specific, clearly measurable objectives that relate to your business goals.

How do you get there? From here it should be possible to prepare a detailed plan for achieving your objectives one that indicates budgets and projections and includes a business forecast. The plan must be treated as a flexible working document.

Mr Bodman recommends monthly meetings to review achievement against the month's plan, identify and overcome obstacles, monitor achievement and compare with forecasts, budgets and the overall plan.

For more information ring 08454 58 85 58. Business Link Berkshire and Wiltshire offers advice to south Wiltshire firms on 0845 600 41 41.