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

Many skeptics argue that business plans are just documents that gather dust on a shelf, never to be revisited or implemented. They believe that businesses are too dynamic and unpredictable for a rigid, structured plan to be of any real value. While it is true that business environments are constantly changing, and plans may need to be adapted, that doesn’t diminish the importance of having a guiding document to steer your business in the right direction.

One of the key benefits of a business plan is that it forces you to think critically about your business idea. By going through the process of writing a business plan, you are forced to consider important questions such as who your target market is, how you will differentiate yourself from competitors, and what your financial projections look like. This process can help you identify potential flaws in your business model, refine your strategy, and ultimately increase your chances of success.

Furthermore, a business plan is a valuable tool for securing funding. When seeking financing from banks, investors, or other sources, having a well-thought-out business plan can instill confidence in potential stakeholders that you have a clear vision for your business and a solid strategy for achieving your goals. Without a business plan, you may struggle to articulate your business idea coherently and convince others of its viability.

Additionally, a business plan can serve as a benchmark for measuring your progress and performance. By tracking key performance indicators outlined in your plan, you can assess whether you are on track to meet your goals or if adjustments need to be made. This can be especially helpful for new businesses looking to establish themselves in the market and grow their customer base.

Moreover, a business plan can help you manage risks and uncertainties. By conducting a thorough analysis of potential threats and vulnerabilities in your market environment, you can develop contingency plans to mitigate those risks and ensure the long-term sustainability of your business. In today’s fast-paced business world, where disruptions and crises are becoming increasingly common, having a well-thought-out business plan can make all the difference between success and failure.

In conclusion, while it is true that business plans may need to be flexible and adaptable to changing circumstances, their utility should not be underestimated. A well-crafted business plan can serve as a roadmap, a pitch deck, a performance measurement tool, and a risk management strategy all rolled into one. So, if you’re starting a new business, expanding an existing one, or seeking funding, don’t overlook the importance of having a solid business plan in place. It may just be the key to unlocking your business’s full potential.

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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