If one word summed up 2019 for small businesses, it would be “uncertainty.” The combination of economic and political turmoil requires business owners to constantly manage changing headwinds.

Overlay that with the responsibilities a small business owner manages on a day-to-day basis and it can create a great deal of stress.

Despite these turbulent times, many business owners expressed optimism and confidence heading into 2020. We surveyed 500 entrepreneurs  prior to the December 2019 General Election.

This group was very aware of the challenges they face and predict that political changes will impact their business in the future. Yet a whopping 86 percent of them also told us they’re confident that they’ll achieve their main goals in 2020: increasing revenue and growth and attracting new customers.

For many, these businesses started not as a way to make money, but rather a quest to take control of their destiny. Their main motivations for starting a business were to be their own boss, control the hours they work and enjoy greater job satisfaction.

For 20 percent of people, their business rose from the ashes of redundancy and created an opportunity to follow their passion.

This passion and drive fuels the UK’s economic fabric. The better small businesses do, the better the odds that they generate jobs for local people, giving an economic boost to their community and continuing to provide significant value to customers.

According to the Local Multiplier 3 (LM3), every £1 spent with a local supplier is worth £1.76 to the local economy. With small businesses representing 99 percent of the UK business population, their optimism and success are vital for a vibrant economy.

Yet surprisingly, seven in 10 small business owners don't have a marketing plan for 2020, with nearly half saying ‘everything is going fine as it is’. A further quarter would rather just ‘see what happens’.

This creates a dichotomy. Entrepreneurs look for the control over their own destiny however are hesitate on next steps, such as leveraging tools that provides better insights into how and where to drive business, which in turn, creates a more efficient, productive business model.

At first glance, a marketing plan can seem rather daunting and laborious. But sustaining a small business requires not just passion, but perseverance and an ability to withstand challenges and setbacks.

A study published in the Harvard Business Review found that entrepreneurs who write formal plans are 16% more likely to achieve viability than the otherwise identical non-planning entrepreneurs.

Based on our experience working with millions of micro businesses across the UK, we’ve seen how this type of planning can make the difference between businesses that flourish and those that flounder.

Here’s how.

Data-Driven Market Identification: Through the planning process, you will better understand how your offering meets a market need. What problem do you solve and/or what need do you fill?

By matching passion with precision, you better understand the gap in your market or community and can fine tune your pitch and offering to fill that gap.

Clearer Customer Picture: You’ve identified your market. Now who’s the target customer? Let’s say you’ve decided to become a personal trainer.

If your target customers are ‘people who want to get fit’ you’ll end up watering down your unique selling proposition to the point that you’ve lost your differentiation.

By honing your customer target, not only do you preserve your USP, but you can also better understand the nuances of your target. Understanding what motivates them helps you to deliver the right offer at the right time.

Stronger Competitive Position: Who else in your area fills the same need as you and how do they go about it? Have you considered the not so obvious competitors? You offer personal training for new mums.

Thinking outside of core competitors, it could be a business not operating within the fitness industry. Instead, your competition may be other services that are vying for a piece of a new mother’s time. This knowledge and research will help you refine, differentiate and strengthen your position.

360 Marketing Strategy: Word-of-mouth is such an important channel; the personal connection drives engagement. So, we weren’t surprised that almost half of business owners said this represented their most important channel going into 2020.

But how can you complement this channel? By first understanding your market, you’ve created a blueprint for who, when and where to engage new customers and what marketing tactics deliver on your business goals.

Taking the time to plan brings you one step closer to success in 2020.

Charlotte Holmes-Darby, UK Market Lead at Vistaprint