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Tim Berry on business planning, starting and growing your business, and having a life in the meantime.

Why Plan Your Business? Look At This Data

While I’m not a big fan of surveys, this one is pretty straight forward, and I like the results. Palo Alto Software asked thousands of Business Plan Pro users a couple of dozen questions about their businesses, goals, type of business, years in existence, and business planning. Almost 3,000 people responded. And here, in the chart below, is one good summary:

Business Chart

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. You can see the numbers on the chart.

For the record, we sent the results to the University of Oregon Department of Economics for validation. I posted more details about that study and the statistical validation yesterday on our Business in General blog.

One response to “Why Plan Your Business? Look At This Data”

  1. […] you’re not yet sold on the benefits of a well-conceived business plan, consider survey results from Palo Alto Software, quantifying the value of a plan. According to the data, entrepreneurs with […]

  2. […] “Why Plan Your Business? Look At This Data” I’m not big on research, but this data is compelling. It shows clearly that people who finished business plans were more likely to achieve related goals than those who didn’t. […]

  3. […] How do I know? Okay, I don’t. But what I do know is that having a business plan (not just any business plan, but a well thought-out, thoroughly researched and often professionally written business plan) makes it almost twice as likely that your business will succeed. […]

  4. […] Why do you need a business plan? Tim Berry, an expert on business plans through his software business, posted these results to a survey his company completed recently of about 3,000 businesses. It should be noted that the businesses surveyed all use Berry’s particular brand of business planning software so the results aren’t comprehensive covering all businesses everywhere. Still, the numbers pretty much show that most businesses that had done some kind of business planning reported advantages in growth, as well as securing capital and loans. Have business plans been helpful to you? Bplan.com […]

  5. […] Software founder Tim Berry (a contributor here at Small Business Trends) recently reported on some new data showing the value of business plans.  Palo Alto did a survey that asked thousands of its Business Plan Pro software users questions […]

  6. […] Software founder Tim Berry (a contributor here at Small Business Trends) recently reported on some new data showing the value of business plans.  Palo Alto did a survey that asked thousands of its Business Plan Pro software users questions […]

  7. […] Why do you need a business plan? Tim Berry, an expert on business plans through his software business, posted these results to a survey his company completed recently of about 3,000 businesses. It should be noted that the businesses surveyed all use Berry’s particular brand of business planning software so the results aren’t comprehensive covering all businesses everywhere. Still, the numbers pretty much show that most businesses that had done some kind of business planning reported advantages in growth, as well as securing capital and loans. Have business plans been helpful to you? Bplan.com […]

  8. […] If those aren’t reasons enough to convince you that you need a business plan, maybe this will…According to a recent study, “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: https://timberry.bplans.com/2010/06/real-data-on-the-success-of-business-planning.html#ixzz0rDkwglZC. […]

  9. […] Why do you need a business plan? Tim Berry, an expert on business plans through his software business, posted these results to a survey his company completed recently of about 3,000 businesses. It should be noted that the businesses surveyed all use Berry’s particular brand of business planning software so the results aren’t comprehensive covering all businesses everywhere. Still, the numbers pretty much show that most businesses that had done some kind of business planning reported advantages in growth, as well as securing capital and loans. Have business plans been helpful to you? Bplan.com […]

  10. […] Why do you need a business plan? Tim Berry, an expert on business plans through his software business, posted these results to a survey his company completed recently of about 3,000 businesses. It should be noted that the businesses surveyed all use Berry’s particular brand of business planning software so the results aren’t comprehensive covering all businesses everywhere. Still, the numbers pretty much show that most businesses that had done some kind of business planning reported advantages in growth, as well as securing capital and loans. Have business plans been helpful to you? Bplan.com […]

  11. Stuart Noton says:

    “Perfect Planning Prevents Poor Performance” has now been validated thanks to your efforts!

  12. BizSugar.com says:

    Why Plan Your Business? Look At This Data…

    Interesting survey results show more success in raising capital for those who finish their business plan. In addition, the same group who finished their business plan also we more successful at growing their businesses….

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