Is failing to plan, just planning to fail?

More than half of small business owners do not have a written, formalised business plan, with 21% forgoing contracts for employees, according to Duport Assosiates Ltd.

The research by SimplyBusiness.co.uk found that many small companies struggle with paperwork, particularly when starting up, but by attempting to avoid it are risking exposing their business to legal action.

Small businesses are subject to just the same strict labour laws as big businesses but would be a lot less capable of weathering costly legal action," stated Jason Stockwood, chief executive of SimplyBusiness.

“It is vital small business owners have the necessary employment structures and guidelines in place to protect their businesses.”

With 80% of business owners admitting they had no staff in charge of Human Resources for the company, small companies could be exposing their firms to unnecessary risk.