I don’t take interest in most surveys, but sometimes there are a few surveys that are really worth your while. Like this one, about business plan. In this post you will understand why you need a business plan.
The survey was significant to prove the importance of business plans to entrepreneurs. Simply put, those who finished their business plans were about twice as likely to successfully grow their business, get investment, or land a loan than those who didn’t. Read more.
Palo Alto software creates softwares for business plans to entrepreneurs and their startups. In the survey they were questioned about their businesses, goals, type of business, years in existence, and business planning. There were over 3000 respondents and it was quite clear to understand the fact that business plans made all the difference. Startups that had a business plan were much quicker to grow and establish their business. Also, with a solid business plan they greatly reduced their chances of failure.
Way before this survey, at a recent TiE (The Indus Entrepreneurs) workshop, successful entrepreneur Guy Kawasaki pointed out that Business Plans are almost the only point of consideration for any angel investor. And he was very frank to point out the fact that most “bozo’s” still don’t realize the power of a good business plan.
Here are some quick bullets about the key advantages of Business plans:
- They help you conclude possible drawbacks of the business
- SWOT Analysis
- Business plans provide a decision-path to follow
- Helps you in cash flow decisions
The “Plan As You Go” approach to business is just not effective in this dog-eat-dog business world, where a sudden turn of events could dry you out of all your cash reserves and put you out on the streets. Right from bloggers to huge corporates, everyone should go in for a business plan. After all, blogging too has become a business these days.