Business Plan Statistics


Steve Bennett
Steve Bennett
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Business Plan Statistics 2023: Facts about Business Plan outlines the context of what’s happening in the tech world.

LLCBuddy editorial team did hours of research, collected all important statistics on Business Plan, and shared those on this page. Our editorial team proofread these to make the data as accurate as possible. We believe you don’t need to check any other resources on the web for the same. You should get everything here only 🙂

Are you planning to form an LLC? Maybe for educational purposes, business research, or personal curiosity, whatever the reason is – it’s always a good idea to gather more information about tech topics like this.

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Top Business Plan Statistics 2023

☰ Use “CTRL+F” to quickly find statistics. There are total 24 Business Plan Statistics on this page 🙂

Business Plan “Latest” Statistics

  • According to research in small company economics, business owners who take the time to plan out their venture are 152% more likely to launch it.[1]
  • Businesses with plans expand 30% more quickly than those without goals.[1]
  • According to statistics, the same business owners who create plans are 27.1% more likely to shut down a company.[1]
  • Research confirmed the link between planning and rapid growth, finding that businesses with annual sales growth rates of above 92% often had business plans.[1]
  • Only 38% of enterprises in the midlands have a formal business plan, compared to 52% of those in the south and east according to Koulopoulos in 2016.[2]
  • According to a recent Barclays study, 23% of small firms in the UK, or one 1of every 4, do not have a business plan.[2]
  • The majority of small enterprises in the UK—47% —have formal written business plans in place, while the remaining 25% have informal verbal business plans according to Talk Business in 2016.[2]
  • Businesses that adopt business plans from the beginning have a 7% greater likelihood of experiencing rapid development than those that don’t.[2]
  • In organizations without a business strategy, 25% of them will pass away within two years after launch.[2]
  • There is a 30% possibility of sales growth and the potential to double the business if a major company has a properly documented business strategy.[2]
  • 70% of companies that survive for five years do so because they have a comprehensive business strategy.[2]
  • Without a business strategy, more than 30% of small enterprises fail within the first three years of operation according to Francis J. Greene & Hopp, 2017.[2]
  • Second-time business owners who seek outside funding are 19% more likely to put their ideas on paper than those who do not.[3]
  • Small businesses, which account for 64% of newly generated employment in the U.S, generate 1.5 million jobs yearly, according to the small business administration.[4]
  • According to the most recent data, more than 20% of small businesses fail in the first year and over 50% of small firms fail within the first five years.[4]
  • Business owners who have a strategy are 129% more likely to continue working on expanding their company beyond the initial beginning period.[4]
  • Small and medium-sized businesses account for more than 90% of all businesses.[4]
  • Being one’s own boss was cited as the primary motivator for starting a company by 29% of respondents.[4]
  • Small businesses generate 1.5 million new employment yearly, making up about 64% of all new jobs in the U.S.[4]
  • According to 69% of venture capitalists, they never invest in new enterprises without first reading a business plan.[5]
  • The likelihood of aspiring company owners sticking with their venture was six times higher for those who had completed a business plan than for those who hadn’t.[5]
  • According to 2014 research, company owners that create formal business plans get more formal financial help than those who don’t and among 3,640 venture capitalists, 70% believe having a documented business plan is crucial.[5]
  • Only 2% of respondents to the aforementioned survey believed that a business strategy was unnecessary.[5]
  • Despite the fact that roughly 20% of businesses fail in the first two years, this does not guarantee that it will.[6]

Also Read

How Useful is Business Plan

A well-thought-out business plan can serve as a guiding document for the overall direction of a company. It outlines the objectives of the business, the target market, and the strategies for reaching those goals. It also helps in identifying potential challenges and risks that may arise, allowing businesses to be better prepared to navigate them.

One of the key benefits of a business plan is its role in securing financing. Investors, lenders, and potential partners often require a detailed business plan to assess the viability and potential return on investment of a new venture. A solid business plan can provide assurance to these stakeholders that the business is well-thought-out and has a clear strategy for success.

In addition to external stakeholders, a business plan can also be a valuable internal tool. It can help employees understand the long-term goals and objectives of the company, fostering alignment and collaboration. By clearly outlining roles, responsibilities, and timelines, a business plan can guide employees in their day-to-day activities and keep everyone focused on the same objectives.

Furthermore, a business plan can help business owners make informed decisions based on data and analysis. By setting specific and measurable goals, businesses can track their progress and adapt their strategies as needed. This can help businesses stay agile and responsive to changes in the market or competitive landscape.

However, some critics argue that business plans may be too rigid and limiting. They argue that the business environment is constantly evolving, and a static document may not be able to keep up with the pace of change. Moreover, some entrepreneurs may be discouraged from pursuing their ideas if they feel overwhelmed by the complexity of creating a comprehensive business plan.

Despite these criticisms, the benefits of having a business plan far outweigh the potential drawbacks. Even if a business plan may need to be revised or adapted as circumstances change, having a roadmap for the future can provide clarity and focus for business owners and entrepreneurs. It can help them stay organized and disciplined in pursuing their goals, as well as provide a sense of accountability and measurement of progress.

In conclusion, while a business plan may not guarantee success, it can certainly increase the likelihood of it. Business owners and entrepreneurs would be wise to take the time to create a detailed and thoughtful business plan, as it can serve as a valuable tool for guiding their decisions, securing funding, and driving the success of their ventures.

Reference

  1. bplans – https://articles.bplans.com/do-you-need-a-business-plan-scientific-research-says-yes/
  2. excellentbusinessplans – https://excellentbusinessplans.com/a-business-plan-creates-30-greater-chance-of-growth/
  3. hbr – https://hbr.org/2017/07/research-writing-a-business-plan-makes-your-startup-more-likely-to-succeed
  4. webinarcare – https://webinarcare.com/best-business-plan-software/business-plan-statistics/
  5. gobusinessplans – https://www.gobusinessplans.com/business-plan-facts-and-statistics-to-drive-your-2020-business-strategy/
  6. investopedia – https://www.investopedia.com/financial-edge/1010/top-6-reasons-new-businesses-fail.aspx

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