Variable | Step 1 | Step 2 |
---|---|---|
Constant | 4.43** | 4.18** |
Firm Age | 0.005 | −0.002 |
Ent XP | 0.52* | 0.59* |
Age | −0.02** | −0.02+ |
Education | 0.08 | 0.04 |
Case sample | −0.61* | −0.69* |
High Tech Firm | −0.10 | −0.16 |
0.09+ | ||
Write business plan | ||
Secondary data | −0.02 | |
Business plan feedback | −0.02 | |
Business plan funding | −0.05 | |
0.09+ | ||
Interview | ||
Prototype | −0.02 | |
Show prototype | 0.04 | |
Experiment | −0.02 | |
Preorders | 0.15* | |
Pivot | 0.06 | |
0.19 | 0.30 | |
Adjusted | 0.15 | 0.19 |
change | 0.19 | 0.10 |
Business planning | Lean startup | ||
---|---|---|---|
Supported? | Supported? | ||
: Write Business Plan | Yes | : Interviewed Customers | Yes |
: Secondary Data | No | : Created a Prototype | No |
: Feedback on Business Plan | No | : Showed a Prototype | No |
: Funding from Business Plan | No | : Experiment | No |
: Preorders | Yes | ||
: Pivoted | No |
Summary regression results for the growth DV
Variable | Business plan | Lean startup |
---|---|---|
Constant | 2.18 | 2.10 |
Firm Age | 0.03 | −0.01 |
Ent XP | 1.13 | 1.24 |
Age | −0.04** | −0.05* |
Education | 0.18 | 0.16 |
Case sample | 0.65 | 0.25 |
High Tech Firm | −0.61 | −0.48 |
0.30* | ||
Write business plan | ||
Secondary data | −0.17 | |
Business plan feedback | 0.01 | |
Business plan funding | 0.19 | 0.25 |
Interview | ||
Prototype | −0.11 | |
Show prototype | 0.14 | |
Experiment | −0.09 | |
Preorders | 0.89* | |
Pivot | 0.34* | |
0.39* | 0.51* |
Business planning | Lean startup | ||
---|---|---|---|
Hypothesis 1 | Supported? | Hypothesis 2 | Supported? |
: Write Business Plan | Yes | : Interviewed Customers | Yes |
: Secondary Data | No | : Created a Prototype | No |
: Feedback on Business Plan | No | : Showed a Prototype | No |
: Funding from Business Plan | No | : Experiment | No |
: Preorders | Yes | ||
: Pivoted | Yes |
We do not believe that business planning exists as a latent construct necessarily comprised of these activities, but rather each of these activities are potential components of the concept referred to as “business planning” in prior research.
Similar to business planning activities, we believe that lean startup is not a latent construct but rather these activities in some combination is what is meant when practitioners and scholars refer to lean startup. As such we test each of the activities individually rather than as a construct.
Following the extant guidelines on regression assumptions ( Osborne and Waters, 2002 ), we tested our model to ensure the regression assumptions were met. First, to check if our error terms ( Flatt and Jacobs, 2019 ) are normally distributed, the P - P plot suggests normality as the plot is largely linear. Second, to check for a linear relationship between the independent and dependent variable, our residual plot showed a linear relationship. Third, as our variables were not latent, there is no concern for measurement error for this approach. However, we did follow best practices suggested by Flatt and Jacobs (2019) and tested the Durbin–Watson statistic. Our value for this measure is 1.5 and their guidelines are that this statistic should be close to 2. Values between 1.2 and 1.6 represent only a minor violation of the statistical independence of error terms. Finally, to address the assumption of homoscedasticity, inspection of our standardized residuals showed our residuals scattered around the 0 (horizontal line). Therefore, for our dependent variable of success, we can feel comfortable our data meets the assumptions of linear regression.
As this dependent variable was analyzed using logistic regression, we analyzed our data following best practices from Garson (2012) . First, our dependent variable is dichotomous. Second our scatterplot showed no outliers in our data. Third, the correlation table showed no evidence for multicollinearity as no correlations were above 0.9 ( Tabachnick et al. , 2007 ). Hence, we feel our data meets the assumptions for logistic regression.
[Business Background]
Started (or am starting it) myself
When you first started pursuing the business, how many people were on the founding team (including yourself)?
High Tech Startup (External/Venture funded)
Steady Growth Business (Internally/Self-funded)
Lifestyle Business
Business Idea
Decision to Start a Business
Occurred Together
Month (1–12)
Year (YYYY)
[Lean Start Up, Business Planning Practices]
Interviewed potential customers
Created a prototype
Showed a prototype to potential customers for feedback
Conducted an experiment to better understand some portion of your business
Wrote a business plan
Accepted money for pre-orders
Used customer feedback to alter the direction of your business ("pivoted")
Gathered secondary data on industry statistics or trends
Shared your business plan with people outside the company for feedback
Shared your business plan with people outside the company for funding
[Demographics]
How old are you? 0.5
Prefer not to answer
Black or African American
American Indian or Alaska Native
Native Hawaiian or Pacific Islander
Living with a partner
Never married
Up to 8th grade
Some High School
High School Diploma
Some College
Associate's Degree
Bachelor's Degree
Some Graduate School
Master's Degree
More than 1
[Success Criteria]
My business is a success
Increased Annual Revenue
Increased Annual Customers
Increased Number of Employees
Thank you for completing the survey!
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A portion of this research was funded by the Downing Scholars research grant at Xavier University.
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Updated: August 25, 2024 · Reviewed by: Ahmad Nasrudin
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Business planning is a crucial step in starting and growing a successful enterprise. It provides a roadmap for your venture, outlining your goals, strategies, and financial projections.
Whether you’re a budding entrepreneur or an established business owner, a well-crafted business plan can help you:
In this comprehensive guide, we’ll walk you through the process of creating a business plan, from understanding the key components to developing effective strategies. By the end, you’ll be equipped to build a solid foundation for your business and increase your chances of success.
What is a business plan.
A business plan is a comprehensive document that outlines your business strategy, goals, and financial projections. It serves as a roadmap for your venture, guiding your decisions and attracting potential investors.
There are several types of business plans, each with its own specific focus:
A well-crafted business plan offers numerous benefits, including:
A business plan is essential for any entrepreneur or business owner, providing a foundation for success and growth.
What are the key components of a business plan.
A well-structured business plan typically includes the following key components:
Each of these components is essential for a comprehensive business plan. Together, they provide a clear picture of your business, its market potential, and its financial viability.
While a business plan has no strict length requirement, it is typically 15-25 pages long . However, the length may vary depending on the complexity of your business and the level of detail required.
A shorter plan may be sufficient for a small, simple business, while a larger, more complex business may require a more detailed plan. The key is to ensure that your plan is clear and concise and provides the necessary information to attract investors or secure funding.
Your business plan can be valuable to a variety of stakeholders, including:
By sharing your business plan with relevant stakeholders, you can build relationships, secure funding, and gain valuable insights and support.
Note: While those offer many free courses, some might require payment for certificates or additional materials. Please check individual course details.
What is market research.
Market research is the process of gathering and analyzing information about a market. It helps you understand your target market, competition, industry trends, and consumer behavior.
There are two main types of market research:
There are numerous methods for conducting market research, both online and offline. Here are some common approaches and resources:
When conducting market research, consider the following tips:
By following these guidelines and combining various research methods, you can gather valuable insights to inform your business decisions and develop effective marketing strategies.
Your target market is the specific people most likely to purchase your product or service. Identifying your target market is essential for effectively marketing your business and tailoring your offerings to meet their needs.
Here are some strategies to help you identify your target market:
By understanding your target market, you can tailor your marketing efforts and product offerings to meet their specific needs and preferences, increasing your chances of success.
What financial statements should i include.
When creating your business plan, you should include the following financial statements :
These three interrelated statements provide a comprehensive picture of your business’s financial health.
Financial projections are estimates of your business’s future financial performance. To create accurate projections, you’ll need to use a combination of historical data, industry benchmarks, and assumptions about future growth.
Here are some steps to follow:
Remember that financial projections are just estimates, and actual results may vary. It’s important to regularly review and update your projections as your business grows and changes.
A break-even analysis is a financial tool that helps you determine the sales volume you need to cover your costs and start making a profit. It calculates your break-even point, the point at which your total revenue equals your total costs.
To calculate your break-even point, you’ll need to know your fixed costs (costs that remain constant regardless of sales volume) and your variable costs (costs that vary with sales volume). You can then use the following formula:
By understanding your break-even point, you can assess the feasibility of your business model and make informed decisions about pricing, sales targets, and cost-cutting measures.
How can i attract investors.
Attracting investors requires effective communication , networking, and showcasing your business’s potential. Here are some key strategies:
There are various funding sources available for businesses, each with its own advantages and disadvantages:
The most suitable funding source for your business will depend on your specific needs, its stage, and your ability to meet the requirements of different investors.
A strong funding pitch should clearly articulate the following:
By following these guidelines and tailoring your pitch to your specific audience, you can increase your chances of attracting investors and securing the funding you need to grow your business.
How can i track my business’s progress.
Tracking your business’s progress is essential for identifying areas of strength and weakness, making informed decisions, and ensuring you’re on track to achieve your goals. Key performance indicators (KPIs) are metrics you can use to measure your business’s performance against specific goals.
Some examples of KPIs include:
By tracking these KPIs and comparing them to your goals, you can identify areas where you are succeeding and areas where you need to improve.
Making informed decisions is crucial for the success of your business. Here are some tips for making effective decisions:
By following these tips, you can make informed decisions to help your business grow and succeed.
How often should i update my business plan.
Your business plan should be a living document that evolves as your business grows and changes. Reviewing and updating your plan regularly is important to ensure it remains relevant and effective.
The frequency of updates will depend on several factors, including:
A general guideline is to review and update your business plan annually or more frequently if necessary.
Using a business plan template can be a helpful starting point, but it’s important to customize it to fit your specific business. Templates can provide a structure and outline but may not include all the necessary sections or address your unique needs.
Advantages of using a template:
Disadvantages of using a template:
When choosing a template, look for one that is well-structured, easy to use, and adaptable to your specific business needs.
While you can create a basic business plan on your own, consulting with a business advisor or accountant can provide valuable guidance and expertise. Professionals can help you:
If you’re unsure about your ability to create a high-quality business plan, consider consulting with a professional. They can help you develop a plan to increase your chances of success.
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Business planning is originally a whole process in itself. This planning process has its own components, features, types, etc. The soul of the business planning process itself resides in the process of decision-making. So, let’s get ready to learn about all these important aspects in detail!
Entrepreneurs: why planning matters and how to do it better.
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While many argue that business plans are no longer needed to start up a company, the very exercise of trying to foresee the future five years from now can be extremely helpful for entrepreneurs. Indeed, research published in the International Small Business Journal demonstrates that engaging in planning activities is associated with better chances of success and greater accuracy.
The study's authors, Govert Vroom of IESE Business School and Brian McCann of Vanderbilt Univeristy worked with the Panel Study of Entrepreneurial Dynamics (PSED), a large scale survey of entrepreneurs in the process of starting a business in the U.S. There findings are not only a reminder of the power of processes to help entrepreneurs learn and profit from knowledge, it also provides some pointers on how to get the most from planning:
Take A Wider View Of Planning
Many enthusiastic entrepreneurs get extremely bored detailing business plans and financial projections, often seeing them as obligations imposed by banks or investors. but planning can not only help you attract funding, it also helps you develop your skills as an entrepreneur, giving you a better shot at success.
Previous studies on budding entrepreneurs have tended to concentrate on how the planning process helps them gain legitimacy or gather external resources. But McCann and Vroom's study looks at how entrepreneurs make ongoing assessments of their fledgling businesses throughout the planning process -- transforming their internal views in the process.
• Instead of seeing planning largely as an obligation imposed by external parties, focus instead on how it can help you generate new information and insights into your business
• It can also help challenge and change your own views and biases (not only of your prospective business but also of your own skills and competence), which will ultimately help the development of your business idea.
Allow Proper Time To Plan
The study found that engaging in planning activities over a period of 12 months led to significant changes in perceptions in three areas:
• How much uncertainty did respondents perceive in their business environment in terms of how markets would develop, the competition and how key stakeholders would react to the start-up?
• Self-efficacy. How confident did they feel about their abilities to effectively run their businesses?
• Expectations of financial performance. How well did they feel their business would perform in financial terms? Did expectations grow or fall over time?
Even experienced entrepreneurs seemed to learn and change their beliefs through planning activities. In fact, serial entrepreneurs' beliefs changed to a similar extent as novice entrepreneurs throughout the study.
Taking Action
Planning may include actions such as defining potential markets and drawing up business plans with projections. Entrepreneurs who take more actions during the planning stage of a business help reduce the uncertainty surrounding their project associated with financial and competitive factors - namely, attracting funding, attracting customers, competing with other firms, complying with regulations, and keeping up with technological advances.
Team Up
There was also evidence to suggest that entrepreneurs who were part of larger teams saw more positive results, perhaps due to their pooled knowledge and experiences.
Planning may not make perfect, but budding entrepreneurs should ignore it at their peril.
A version of this article first appeared on IESE Insight .
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With a combination of subject-matter experts, direct mentoring, coaching opportunities, pitch practice, and timely content, the Entrepreneurial Academy highlights the fundamentals of launching and growing a business.
The program is invaluable for businesses at any stage, from guiding startups in their first years of operation to supporting established businesses looking to grow within their chosen industries.
The weekly content is practical, applied and resource rich. Over 8 weeks, students have an opportunity to learn through compelling stories of entrepreneurship, resilience, and innovation.
These instructors and business leaders share one thread in common- they’re connections for life. These relationships don’t end when the program does.
Curriculum includes:
Classes are held every Monday night from 6:00 p.m. – 9:00 p.m. during Spring and Fall semesters.
Cost: Tuition for the program is $449 .
Tuition includes:
To be eligible for the free Chamber membership, participants must attend 6 of the 8 educational sessions .
*NOTE: – There are no refunds for this program once a participant confirms enrollment. – There are no discounts or incentives for this program.
Fall 2024 Semester Dates: September 16th – November 4th
Please email Lauren Frawley at [email protected] for any questions if Entrepreneurial Academy is a fit for you!
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COMMENTS
A business plan is an aspiring entrepreneur's way to prove that a business idea is actually worth pursuing. As entrepreneurs document their go-to-market process, capital needs, and expected return on investment, entrepreneurs likely come across a few hiccups that will make them second guess their strategies and metrics — and that's exactly ...
A good business plan guides you through each stage of starting and managing your business. You'll use your business plan as a roadmap for how to structure, run, and grow your new business. It's a way to think through the key elements of your business. Business plans can help you get funding or bring on new business partners.
Business Plan: A business plan is a written document that describes in detail how a business, usually a new one, is going to achieve its goals. A business plan lays out a written plan from a ...
The steps below will guide you through the process of creating a business plan and what key components you need to include. 1. Create an executive summary. Start with a brief overview of your entire plan. The executive summary should cover your business plan's main points and key takeaways.
If you opt for the brief business plan, you will focus primarily on articulating a big-picture overview of your business concept. This version is used to interest potential investors, employees, and other stakeholders, and will include a financial summary "box," but it must have a disclaimer, and the founder/entrepreneur may need to have the people who receive it sign a nondisclosure ...
Joshua D. Margolis. Amy Gallo. Ben Munoz. Avichai "Avi" Kremer. An up-and-coming entrepreneur, Gil Lehner is looking ahead and deciding on his next move. But Gil's situation is unusual: He was ...
This textbook provides a comprehensive overview of the essential issues in effective entrepreneurial management. It first introduces readers to the fundamentals of entrepreneurial management, the nature of entrepreneurial managers and business planning, before exploring the specific topics of creativity and innovation, risk management, entrepreneurial marketing and organization as well as ...
The Entrepreneurial Manager. In order to "educate leaders who make a difference in the world," the Harvard Business School has always had general management as its core educational organizing framework. The Required Curriculum has historically had a core course in general management and The Entrepreneurial Manager (TEM) provides a powerful ...
A business plan lays out a strategic roadmap for any new or growing business. Any entrepreneur with a great idea for a business needs to conduct market research, analyze their competitors, ... Growth plan: An ongoing business management plan that ensures business tactics and strategies are aligned as a business scales up.
A business plan is a written document that defines your business goals and the tactics to achieve those goals. A business plan typically explores the competitive landscape of an industry, analyzes a market and different customer segments within it, describes the products and services, lists business strategies for success, and outlines ...
Design and development plan; Operations and management plan; Financial factors; ... The classic business plan writer is an entrepreneur seeking funds to help start a new venture. Many, many great ...
Describe Your Services or Products. The business plan should have a section that explains the services or products that you're offering. This is the part where you can also describe how they fit ...
Entrepreneurial management is the practice of giving the innovation inherent in entrepreneurship a more solid management structure. Many new entrepreneurs have ideas for businesses they want to start, or products they want to create, but don't know how to manage a small business effectively. However, managing a new venture and managing an ...
Our online classes teach you how to develop a business plan and manage and market your business. Our Career & Entrepreneurship Center on the Seminole Campus offers workshops, courses, community networks, competitions and on-site resources. You can also take many classes online. This academic program prepares you for the following careers.
Here are the key elements of a good business plan: Executive Summary: An executive summary gives a clear picture of the strategies and goals of your business right at the outset. Though its value is often understated, it can be extremely helpful in creating the readers' first impression of your business.
Typically, business planning has been analyzed as the single act of writing a business plan (e.g. Honig and Karlsson, 2004).However, business planning is made up of a variety of activities (Gruber, 2007), which entrepreneurs may utilize as a whole, or simply choose parts of the business planning process.It is worth noting that these specific activities are not mutually exclusive with lean ...
Business planning is a crucial step in starting and growing a successful enterprise. ... A business plan is essential for any entrepreneur or business owner, providing a foundation for success and growth. ... A detailed description of your business, including its legal structure, ownership, and management team. Market analysis: An in-depth ...
Planning. Business planning is originally a whole process in itself. This planning process has its own components, features, types, etc. The soul of the business planning process itself resides in the process of decision-making. So, let's get ready to learn about all these important aspects in detail! Importance, Features, and Limitations of ...
The Importance Of Planning In Entrepreneurship Benjamin Franklin once said, "If you fail to plan, you plan to fail." Planning is an important part of many aspects of our lives, and is especially true in business. Success often doesn't simply happen by chance, but requires a willingness to plan and put in
Take A Wider View Of Planning. Many enthusiastic entrepreneurs get extremely bored detailing business plans and financial projections, often seeing them as obligations imposed by banks or ...
SPC announces Titan Venture XLP. Promoting innovation and entrepreneurship, the creation of Titan Venture XLP showcases SPC's participation in the National Association for Community College Entrepreneurship's Everyday Entrepreneur Program. Through this initiative, the College of Business also sponsors a business incubator at Gibbs High School's Business, Entrepreneurial, Technology Academy ...
Business creation - business planning and risk management. Business planning usually takes place through systematization of ideas, such as the business plan, a set of written documents modeling the future of an enterprise (Carvalho, 2009, Testa and Frascheri, 2015).
Program Summary. The Business Development and Entrepreneurship Certificate (CCC) offers a sequence of courses that provide relevant technical knowledge and business skills needed to prepare for starting and/or managing an entrepreneurial business and/or attaining further education and careers in the Business, Management, and Administration fields.
Classes are held every Monday night from 6:00 p.m. - 9:00 p.m. during Spring and Fall semesters. Cost: Tuition for the program is $449. Tuition includes: Upon successful completion of Entrepreneurial Academy®, graduates will receive a free 1-year Startup membership to the St. Petersburg Area Chamber of Commerce ($475 value).