Business Plan Statistics 2024 – Everything You Need to Know

• Though the rate of business failure in the first two years is around 20%, it doesn’t mean that you have to fail. ^[1]

Business Plan Latest Statistics

• Interestingly enough, the businesses that manage to survive for 5 years, about 70% follow a strategic business plan. ^[2]
• At the starting stage, businesses that use business plans have 7% higher likeliness of high growth as compared to those who do not develop a business plan at the starting stage. ^[2]
• According to a report, it is stated that the entrepreneurs that expect external financing are 19% more likely develop their vision into the paper form as compared to those not seeking external financing. ^[2]
• A new research from Barclays stated that in the UK one out of four small businesses (23%). ^[2]
• Approximately half (47%) of the UK’s small businesses have formal business plans in place while the remaining (25%). ^[2]
• More than 30% of the small businesses do not survive the first 3 years of operations if they do not have a business plan. ^[2]
• 50% of new businesses die within five years. ^[2]
• Businesses who do not have a business plan 25% of the them will die within two years of startup. ^[2]
• 10% of businesses die within five years of formation, and only 6% businesses die withinin 10 years. ^[2]
• 52% of the businesses in the south and east are most likely to have a business plan while only 38% in the midlands have a formal business plan. ^[2]
• If a large business has a formal written business plan, then there is a 30% chance of growth in sales and also the chance to double the business. ^[2]
• Retrieved from https//hbr.org/2017/07/researchwritingabusinessplanmakesyourstartupmorelikelyto succeed Henricks, M.. ^[2]
• Emerging entrepreneurs who completed a business plan were 6 times more likely to persist in putting together their business than those without a plan. ^[3]
• Entrepreneurs that write formal business plan receive more formal financial support than if they had no plan, according to a 2014 study 70% of 3,640 venture capitalist s perceive a written business plan to be very important. ^[3]
• In the above study, only less than 2% think that a business plan is unimportant. ^[3]
• 69% of venture capitalists say that they have not invested in new ventures without reviewing a business plan first. ^[3]
• 0 seconds of 1 minute, 38 secondsVolume 75%. ^[1]
• Through research, planning, and flexibility, you can avoid many of the pitfalls of a new business and be a part of the 25% that make it to 15 years. ^[1]
• Another study found that companies that plan grow 30 percent faster than those that don’t plan. ^[4]
• To reinforce the connection between planning and fast growth, yet another study found that fast growing companies—companies that had over 92 percent growth in sales from one year to the next—usually have business plans. ^[4]
• In fact, 71 percent of fast growing companies have plans. ^[4]
• A study at the University of Oregon found that businesses with a plan were far more likely to get funding than those that didn’t have a plan. ^[4]
• A study published in Small Business Economics found that entrepreneurs that take the time to create a plan for their business idea are 152 percent more likely to start their business. ^[4]
• Not only that, those entrepreneurs with a plan are 129 percent more likely to push forward with their business beyond the initial startup phase and grow it. ^[4]
• These findings are confirmed by another study that found that entrepreneurs with a plan are 260 percent more likely to start their businesses. ^[4]
• Interestingly, these same entrepreneurs who build plans are 271 percent more likely to close down a business. ^[4]
• say one of the main reasons strategic initiatives succeed is skilled implementation of organizations surveyed achieve at least twothirds of their strategy objectives, with 50% 67% and 54% achieving less than 50%. ^[5]
• Entrepreneurs who write formal plans are 16% more likely to achieve viability than the otherwise identical nonplanning entrepreneurs. ^[6]
• First, high growth oriented startup entrepreneurs are 7% more likely to plan, while those with innovative, disruptive ideas are also marginally more inclined (4%). ^[6]
• Second, entrepreneurs seeking external finance are 19% more likely to commit their vision to paper than those not seeking finance. ^[6]
• COVID 19 is likely to drive the governments analytical and statistical work for a significant period. ^[7]
• The web based system is designed to support the Internet as the primary response mode (an Internet response of 65% is expected in 2016). ^[8]
• In 2014, Statistics Canada released a new set of government finance statistics compiled according to the International Monetary Fund’s Government Finance Statistics Manual 2014. ^[8]
• The 2011 Census achieved an Internet response rate of over 50%, with a 65% Internet response rate expected for 2016. ^[8]
• New Generations Are More Likely to Create a Side Business 7. ^[0]
• Start selling online now with Shopify Start your free trial The latest statistics show that there are 32.5 million small businesses in the US, which account for 99.9 percent of all US businesses. ^[0]
• According to the Small Business Administration, small companies create 1.5 million jobs annually and account for 64 percent of new jobs created in the US. ^[0]
• Over 90 percent of the business population represents smalland medium sized businesses, also known as SMEs. ^[0]
• Among the most common motivations, 29 percent of respondents said that they were opening their own business because they wanted to be their own boss. ^[0]
• 17 percent of respondents chose this as their primary motivation. ^[0]
• According to the latest small business statistics, nearly one third of small businesses in the US are currently not operational. ^[0]
• Over 70 percent of US small businesses shut down in March 2020 when the US became the new epicenter of the virus. ^[0]
• More than 60 percent of these small businesses that closed were due to government or health authority orders, as large parts of the country went into lockdown in a bid to curb the spread of the virus. ^[0]
• In fact, more than half say that they have increased the interactions they have with their clients over the internet. ^[0]
• Additionally, 36 percent of personal businesses who use online tools are now also doing all their sales online. ^[0]
• Looking forward, 28 percent of these small businesses owners say cash flow will be their biggest challenge in the near future, followed by a lack of consumer demand. ^[0]
• In fact, Millennials and Gen Zers are 188 percent more likely to have the aim of creating a side business, compared to Baby Boomers or traditionalists. ^[0]
• As a matter of fact, the latest statistics show that more than 20 percent of small enterprises fail in the very first year, and nearly 50 percent of small startups fail within the first five years. ^[0]
• In fact, 42 percent of small businesses fail because of this reason. ^[0]
• Statistics show that 29 percent of new businesses reportedly failed because of a lack of finance. ^[0]
• In fact, 52 percent of the respondents stated that the most important problem for small businesses was labor quality. ^[0]
• For businesses that have more than 50 employees, percent of owners believe it’s harder to find qualified hires. ^[0]
• Small companies create 1.5 million jobs annually and account for 64 percent of new jobs created in the US. ^[0]
• Over 90 percent of the business population represents small and medium. ^[0]
• 29 percent of respondents said that the biggest motivation for opening their own business is being their own boss. ^[0]
• COVID19 has rendered 31 percent of small businesses in the US non. ^[0]
• Millennials and Gen Zers are 188 percent more likely to have the aim of creating a side business, compared to baby boomers. ^[0]
• More than 20 percent of small businesses fail in the very first year, and nearly half of small businesses fail within the first five years. ^[0]
• 52 percent of the respondents stated that the most important problem for small businesses was labor quality. ^[0]

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Reference

1. oberlo – https://www.oberlo.com/blog/small-business-statistics.
2. investopedia – https://www.investopedia.com/financial-edge/1010/top-6-reasons-new-businesses-fail.aspx.
3. excellentbusinessplans – https://excellentbusinessplans.com/a-business-plan-creates-30-greater-chance-of-growth/.
4. gobusinessplans – https://www.gobusinessplans.com/business-plan-facts-and-statistics-to-drive-your-2020-business-strategy/.
5. bplans – https://articles.bplans.com/do-you-need-a-business-plan-scientific-research-says-yes/.
6. cascade – https://www.cascade.app/blog/51-strategy-statistics.
7. hbr – https://hbr.org/2017/07/research-writing-a-business-plan-makes-your-startup-more-likely-to-succeed.
8. statisticsauthority – https://uksa.statisticsauthority.gov.uk/publication/office-for-national-statistics-strategic-business-plan/.
9. statcan – https://www.statcan.gc.ca/en/about/bp.

How Useful is Business Plan

One of the key benefits of a business plan is strategic clarity. Without a clear roadmap, it is easy for businesses to lose focus and direction, drifting aimlessly from one project to another without a coherent overall strategy. A well-developed business plan forces entrepreneurs to think through every aspect of their business, from target market and competition to marketing and financial projections. This process ensures that they have a solid understanding of their business and its potential pitfalls, enabling them to make informed decisions and avoid costly mistakes.

Furthermore, business plans provide a framework for setting and achieving goals. By laying out specific, measurable objectives and the strategies to achieve them, business plans help entrepreneurs stay accountable and track their progress over time. This allows them to adjust their strategies as needed, based on real-time data and feedback, ensuring that they are on track to meet their objectives and grow their business successively.

In addition to providing strategic clarity and goal setting, business plans are valuable tools for securing financing and investment. Potential investors and lenders typically require a detailed business plan to evaluate the feasibility of a business idea and the likelihood of its success. A well-crafted business plan demonstrates to stakeholders that the entrepreneur has thoroughly researched and understands the market, the competition, and the risks involved. It also provides a clear picture of the business’s financial projections, helping investors assess the potential return on their investment and the risks involved.

Business plans also play a critical role in fostering accountability and alignment within an organization. By articulating the company’s vision, mission, and values, as well as its long-term goals and strategies, business plans provide a common reference point for employees, partners, and suppliers. This ensures that everyone is on the same page and working towards the same objectives, fostering a sense of unity and purpose within the organization and contributing to its overall success.

Finally, business plans are valuable tools for evaluating and managing risk. By identifying potential threats and challenges, as well as developing contingency plans to mitigate them, business plans help entrepreneurs anticipate and proactively address obstacles before they become insurmountable. This proactive approach to risk management can help companies weather economic downturns, unexpected competition, or other challenges, ensuring their long-term viability and success.

In conclusion, while some may view business plans as bureaucratic paperwork or unnecessary formalities, the reality is that they are invaluable tools for entrepreneurs and business owners at all stages of their journey. From strategic clarity and goal setting to securing financing and fostering accountability, business plans provide a roadmap for success and a framework for sustainable growth. By investing the time and effort to develop a comprehensive business plan, entrepreneurs can position themselves for success and navigate the complexities of the business world with confidence.

In Conclusion

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