Business plans.

Business plan performance: Are entrepreneurs hitting their goals?

First, we asked participants about how well their business has performed against outlined targets in the last twelve months, and we got a mixed bag of responses.

41% said that their business has moderately exceeded targets, while 15% said that targets have been significantly exceeded. 14% met their targets, while 5% admitted that their business is currently performing below target.

Looking ahead, we also enquired about confidence levels and future planning for 2025/26. We found that 23% of participants are extremely confident about their business, with just 2% expressing little to no confidence. So, while there’s a generally optimistic outlook, some uncertainty remains.

Uncertainty often stems from anticipated challenges. For instance, 25% of participants are concerned about economic downturns, with technological changes, difficulty in securing funding, and increased competition also being mentioned (each 12%). 8% also brought up changing consumer behaviour, while 4% worry they have a lack of resources to effectively develop their plans.

How business plans are evolving: Change, optimism, and AI.

Adaptability has become an essential trait for entrepreneurs nowadays, and 21% of our participants admitted that they’ve had to significantly pivot their plans in the past year. 36% have made at least one major pivot, while 22% have made minor adjustments. Finally, just 14% revealed that their plan has remained largely unchanged.

Despite these shifts, optimism for the future remains high. 16% expressed full optimism, with just 2% revealing that they are not at all optimistic. The biggest group (37%) expressed more neutral to positive sentiments.

When it comes to changes, AI-powered tools are an asset at work and in business planning, offering support with everything from market research to forecasting and content creation. We found that 33% of participants rely on AI to help with financial forecasting, with 24% finding it useful for market research. 23% also use AI for identifying potential risks and opportunities.

However, 16% are not using AI at all, and a further 11% are unsure about the tools that are available to them. For those looking to add a creative edge to their planning, tools like our AI art generator can help bring your visions to life. Using Firefly’s Text-to-image feature, you’re able to generate engaging visual content for business plans, marketing materials, and more.

How well have businesses in each industry performed against the first-year targets of the business plan?

Performance against first-year targets varies widely across industries. Businesses in the Environment and Agriculture industry have significantly exceeded targets (50%), as well as Media and Internet (also 50%). On the other hand, just 8% of those in Arts and Design reported the same level of success, with Engineering and Manufacturing (38%), and Accounting, Banking, and Finance (24%) sitting somewhere in the middle.

Planning habits vary by industry too. For instance, in Healthcare, 19% don’t intend to create a business plan at all, while 40% of those in Manufacturing have a formal plan in place. And in terms of confidence levels, 50% of those in Law, Enforcement & Security express high levels of confidence, while 11% of those in Accountancy, Banking & Finance express less confidence.

Considering the current economic and market conditions in 2025, how optimistic are UK cities about the prospects of their industries?

Optimism levels vary by city too, and our survey revealed some interesting results.

Glasgow stands out as the most optimistic location, with 44% of respondents expressing high levels of optimism. Sheffield also shows relatively high optimism (28%), whereas areas like Norwich sit at the other end of the spectrum, with 14% having very little optimism.

When it comes to adaptability, regional differences are also clear. Businesses in Glasgow appear to be highly adaptive, with 33% having made significant pivots in the past twelve months. Alternatively, 42% of those in Southampton said they’ve had no need to change their plans.