Jesuskana Finance Tips

Recently “webeando” I met one of those many articles that talk about “the errors of the entrepreneur” and I really was surprised to read and error number from the list, the fact of not having a business plan. Sometimes we read (and write) on the internet claims that have no support beyond what the author thinks which often do not know their history and even their identity.

EmpreNautas Although he was born in July 2001, we started talking about how to make a business plan, I think it is important to share some information about the findings of various studies that have examined the relationship between the entrepreneur and the business plan, findings relative, for certain cases, the importance of having a business plan to start a business.

Before continuing with the topic I want to make clear what I mean when I talk about business plan I am referring to a formal, written document that emerges from a systematic planning process.

- Most successful entrepreneurs do not plan business.

That’s right. For example, research done on high-growth companies in the U.S. found (among other things) that most of the entrepreneurs surveyed had no business plan to start your business. I stress: they are successful businesses. This is a study of 100 companies in the ranking of the 500 enterprises (SMEs) to further growth of INC. magazine in 1989. Think to be in this ranking must be 5 consecutive years of rapid growth.

What is rapid growth? As data we can say that the sales ranking of the Inc 500 companies increased an average 169% annually from 1983 to 1988. Again: 169% annual average for 5 years, and most did so without a business plan to start your business. Only a handful of these companies used this tool in later stages of creation. The lack of business plan, is an error associated with entrepreneurial failure? This evidence seems to prove otherwise.

- We can not relate the existence of a business plan with the success of a venture

The Wall Street Journal in its issue dated 01.09.2007 published the article “Enterprise: Do Start-ups Really Need Formal Business Plans” (something like “the start-up companies need a formal business plan?) Referring to A study by Babson College (ie people with similar levels of education and know how to make a business plan).

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