Source of JPEG Graphic: https://hbr.org/2017/07/research-writing-a-business-plan-makes-your-startup-more-likely-to-succeed
Harvard Business Review published an article, "Research: Writing a Business Plan Makes Your Startup More Likely to Succeed," in which 1,000 would-be entrepreneurs were studied. According to the findings, "... high growth startup entrepreneurs are 7% more likely to plan, while those with innovative, disruptive ideas are also marginally more inclined (4%) to plan ... Second, entrepreneurs seeking external finance are 19% more likely to commit their vision to paper than those not seeking finance."
Percentages of participants that actually wrote a business plan were not shared. However, a generally held view by business consultants is that less than 5% of the 22 million to 28 million small business owners in the U.S. have ever had a written business plan. Why? Most small business owners prefer to experiment by doing instead of taking a few weeks to outline their thoughts. They'd rather accept the clients that are coming through the doors instead of planning how NOT to be part of the 50% of companies that don't exist after five years. U.S. Census data verifies Motley Fools' assertion that only a third of new businesses reach a 10th anniversary.
The overall conclusion of the six-year study provides a justification for those SMEs who were going to have a professional business plan written anyway. Click the link to read more.
This article is intended for informational purposes only and doesn't constitute business consulting, financial, or legal advice. Everyone's business situation is different. Consult your own state-sanctioned legal, accounting, and professional team for advice. Contact McDaniel Consulting for your strategic business plan. All images are subject to the copyright protections by the original authors and not McDaniel Consulting except where noted.
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Syreeta V. McDaniel, MBA provides business consulting to entrepreneurs throughout the U.S. and 15+ countries. She is best known for Strategic Business Plan Writing, Gov't Contracting and Int'l Business. She enjoys making organic treats for her dogs.