A well-crafted business plan is a critical tool for any entrepreneur looking to successfully reach their goals. In fact, statistics show us that 71% of fast-growing businesses have written plans that they refer to often, while only 35% of smaller businesses take the time to create them.
Without a doubt, having a solid plan can be the difference between success and failure; other statistics back this up as well. Research reveals that businesses with plans tend to achieve over 2x more profits than those without.
Let’s explore some of the business plan success statistics to find the importance of a business plan.
Insightful Business Plan Success Statistics
- Entrepreneurs with business plans are 260% more likely to launch. 1
- A business plan increases the chances of growth by 30%.
- Approximately 70% of businesses that survive for 5 years follow a strategic business plan. 3
- 71% of fast-growing businesses have plans. 1
- Compared to businesses without a written plan, those with one had a 7% higher likelihood of experiencing high growth. 4
- One study found that only 35% of business owners who were surveyed had finished a business plan. 5
- Simply put, business plan finishers were twice as likely to succeed. 6
If You Have A Completed Business Plan, You’re 260% More Likely To Start Your Business
According to GoBusinessPlan, entrepreneurs who take the time to fully develop their business plans before starting up are much more likely to bring their vision to fruition. With a 260 percent greater likelihood of launching their business, the value of patience and planning is clear.
Putting the plan down on paper ensures that all the details have been considered and that each step in the process is thought through in advance. By pumping the brakes on launching hastily, entrepreneurs end up executing faster with fewer mistakes down the line. The outcome of this discipline pays off and multiplies tenfold over time.
30% More Chances Of Your Business Growth With A Business Plan
A business plan not only helps an already established business grow, but it can also help increase your chances of success when starting up a business from scratch.
Studies have found that having a well thought-out plan in place leads to 30% more chances of seeing growth in the long run. If you’re looking for growth or want to launch a new product or service, consider using a business plan – it just might make all the difference!
Study Finds 70% Of Businesses Survived 5 Years, Most Adhere To Strategic Business Plan
According to Investopedia, roughly 70% of businesses that have been managing to survive for the last five years have done so because they followed a strategic business plan.
This type of plan is essential in order to develop a long-term vision and understand what short-term actions are required over a set period of time. It also helps establish clear goals and objectives, as well as aligning resources with those plans.
Strategic business plans can be crucial when it comes to obtaining external financing and increasing the odds of success or survival.
71% Of Fast Growing Companies Have A Written Business Plan
GoBusinessPlan reports that a staggering 71% of the world’s fastest-growing businesses have plans.
That’s a really high percentage and speaks volumes as to how critical plans are when setting business objectives. Whether it is related to employee engagement, recruitment, financial management etc., having a plan in place provides structure and guidance from the offset.
Plans also help create focus and put action into play quicker than if goals were created without any planning whatsoever.
This statistic demonstrates that for maximum productivity, it is vital for successful companies to be strategic and have a clear roadmap at hand.
Study Reveals Businesses With A Written Business Plan Are More Likely To See High Growth
According to Harvard Business Review, businesses that have a written business plan in place have a 7% higher probability of achieving high growth compared to those without one.
Having a clear vision laid out with achievable goals and realistic strategies can provide the road map companies need in order to reach success.
Though creating and following through on a comprehensive business plan can be daunting, taking the time to write one out is well worth it in order to maximize chances of notable growth and achieve lasting success.
Less Than Half of Business Owners Have A Business Plan
Surprisingly, only 35% of surveyed business owners had finished a business plan, according to a study by Smallbiztrends.
This is surprising considering that creating a comprehensive business plan is essential for evaluating the feasibility and sustainability of any new venture. Crafting a plan allows entrepreneurs to set goals, anticipate challenges, and establish milestones for success.
However, business plans can be time-consuming and complex which may explain why so many are so hesitant to craft one in the first place. Nevertheless, for any aspiring entrepreneur out there who desires success and growth, creating a well-thought-out business plan should always be the starting point.
If You Finish Your Business Plan, Your Chances Of Success Are Twice As High
According to bPlan, those who take the time to complete a business plan are significantly more likely to be successful in their venture; in fact, success rates nearly double.
A comprehensive and well-thought-out plan serves to provide guidance as well as illustrate upcoming growth opportunities that entrepreneurs may not have considered before.
According to experts, business plans should be updated regularly in order to truly become successful. Therefore, to maximize the potential of your business, it would be wise to invest the time and energy into creating or updating an existing business plan.
