Reported on Wed, 07 Jun 2006

Small businesses need to become better at sizing up the competition and planning the way ahead, according to a new survey - and taking out a business loan could help bring them closer to success.

A poll of small to medium-sized enterprises (SMEs) by Alliance & Leicester found that while 43 per cent believed clear communication between staff and customers was the defining factor in success, forging ahead also required imagination.

One-fifth of those polled believed that putting in the resources for forward planning was the key to growth, while 24 per cent said companies had to find an effective way of differentiating themselves from their competitors.

"While I believe there is no one magic formula that determines what makes a business successful, it is clear that there are certain attributes which all high performing businesses share," said Steve Jennings, director of business banking at Alliance & Leicester Commercial Bank.

"There is no substitute for hard work and commitment, but crucially clever businesses also have a clear and distinctive vision, self belief, a good business sense and a clear understanding of the numbers," he added.

SMEs could make use of a business loan to plan appropriate investments that could steer the company towards long-term profit growth.

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