Don't Mistake Business Plans for Planning (It May Be Dangerous to Your Financial Health)
Most academic research concerning business plans suggests that business plans improve the performance of new firms, and virtually all textbooks related to small business advise ent repreneurs to prepare plans before sta rting a business. A survey of the chief executive officers (CEO) in the INC. 500 (America's 500 fastest growing, privatel y held small firms ) suggests otherwise-fewer than twenty percent of the respondents indicated that they had prepared complete business plans before start-up. Furthermore, firms which prepared business plans were less profitable when entering the rapid growth phase than those which did not. This article explores benefits and limitations of business plan preparation.
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