Business Plan Statistics


Steve Goldstein
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 argues that business plans are essential tools for any aspiring entrepreneur. They force individuals to think critically about their business idea, flesh out the details, and develop a comprehensive strategy for success. Without a business plan, it’s all too easy for businesses to stumble blindly into the market, potentially setting themselves up for failure.

Moreover, business plans can be invaluable when seeking outside investment or financing. Investors typically want to see a well-thought-out plan that demonstrates a clear understanding of the market, competition, and revenue projections. A solid business plan can instill confidence in potential investors and increase the chances of securing funding.

Additionally, a well-crafted business plan serves as a guiding document that helps entrepreneurs stay focused on their goals and objectives. It outlines key milestones and timelines, allowing businesses to track their progress and make adjustments as necessary. Without a plan in place, businesses may find themselves adrift, lacking direction and purpose.

On the other hand, some argue that traditional business plans have become obsolete in today’s rapidly changing business environment. The rise of lean startup methodology, for example, emphasizes quick iteration, experimentation, and feedback over detailed planning. In a world where markets shift rapidly, some argue that spending months crafting a detailed business plan may be a waste of time and resources.

Furthermore, business plans are often criticized for being too rigid and inflexible. As circumstances change and new information becomes available, businesses may find themselves bound by the constraints of their initial plan, unable to adapt to new opportunities or challenges. In a world that values agility and adaptability, some argue that a more fluid approach to business planning may be more appropriate.

Ultimately, the usefulness of a business plan boils down to the individual business and its specific circumstances. While some businesses may benefit greatly from a detailed plan that serves as a roadmap for success, others may find that a more flexible, agile approach suits their needs better. In today’s dynamic business landscape, the key is to strike a balance between careful planning and flexibility, adapting to changing circumstances while staying true to one’s overarching goals and objectives. Ultimately, the true test of a business plan lies in its ability to help entrepreneurs navigate the uncertain waters of entrepreneurship, leading them towards long-term success and sustainability.

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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