Business Plan Statistics


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Steve Goldstein
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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.

How much of an impact will Business Plan Statistics have on your day-to-day? or the day-to-day of your LLC Business? How much does it matter directly or indirectly? You should get answers to all your questions here.

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On this page, you’ll learn about the following:

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

One school of thought believes that a business plan is crucial for setting goals and direction for a company. It helps in defining the vision of the business, identifying target markets, analyzing competitors, and planning the necessary resources to achieve success. A well-thought-out business plan can not only attract investors and secure funding but also help in building a sustainable and profitable business.

Moreover, a business plan acts as a communication tool within the company, ensuring that all employees are aligned with the company’s goals and strategies. It provides a blueprint for decision-making and helps in monitoring progress towards achieving the set objectives. In today’s fast-paced business environment, having a clearly defined plan can give a competitive edge to a company by aligning everyone towards a common purpose.

On the flip side, critics argue that a business plan is often seen as a static document that may not always reflect the dynamic nature of the business environment. In a rapidly changing market, sticking to a rigid plan may not always be feasible and could hinder a company’s ability to adapt to new opportunities or challenges. Some argue that spending time on developing a detailed business plan may be counterproductive, as market conditions can change overnight, making the original plan obsolete.

Furthermore, critics claim that the time and effort spent on creating and maintaining a business plan could be better utilized in more practical activities like testing product prototypes, building relationships with customers, or securing partnerships. In a startup scenario where resources are limited, focusing on executing ideas and taking quick action may be more beneficial than creating a lengthy business plan that may never see the light of day.

In the end, the usefulness of a business plan ultimately depends on the individual company and its specific needs. For some businesses, especially those seeking funding or planning for long-term growth, a well-crafted business plan can be an invaluable tool. It provides a structured approach to decision-making, helps in identifying potential pitfalls, and serves as a roadmap for success.

On the other hand, for businesses operating in highly volatile or rapidly evolving industries, a more flexible and agile approach may be more practical. In such cases, having a business model canvas or lean startup methodology could be more suitable, as it allows for quick iteration and adaptation in response to market changes.

In conclusion, while a business plan can be a helpful tool in guiding a company towards its goals, it is not the ultimate determinant of success. It is important for businesses to strike a balance between planning and action, adapting to changing market conditions while staying true to their core values and objectives. Ultimately, the key lies in finding the right approach that works best for each individual company’s unique circumstances and goals.

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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