Don't Mistake Business Plans for Planning (It May Be Dangerous to Your Financial Health)


  • Bill Parks University of Idaho
  • Philip D. Olson University of Idaho
  • Donald W. Bokor University of Idaho


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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How to Cite

Don’t Mistake Business Plans for Planning (It May Be Dangerous to Your Financial Health). (1991). Journal of Small Business Strategy (archive Only), 2(1), 15-24.