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business plan 

A new study has found that entrepreneurs who write formal business plans are more likely to survive and succeed than non-planning entrepreneurs.

The University of Michigan report, Panel Study of Entrepreneurial Dynamics II, spoke to over 1,000 entrepreneurs to find that those who wrote up their business plan in the early days were 16% more likely to achieve positive cash flow.

The research also found that entrepreneurs with high-growth ambitions are 7% more likely to plan their business in a formal document, as are those who have disruptive, innovative ideas, who are 4% more likely to commit their plans to paper.

Researchers inferred from this that those with highly ambitious intentions for their start-up view planning as an important part of anticipating and overcoming challenges.

Speaking about the research Francis Greene, hair in Entrepreneurship in the University of Edinburgh Business School, commented, “Writing a plan can make the difference when it comes to realizing startup success. Plans support the process of turning an entrepreneur’s vision into tangible actions by promoting the organization and direction of start-up activities.”

Learn more about the research here.



Start-ups more likely to succeed with a business plan
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