Studies show that writing a business plan can improve success rates in starting a small business
Research has shown that business plans are crucial for those starting a small business, yet a surprising number of entrepreneurs never write one.
This can actually be a detriment to small business growth, as studies have also shown that business plans can help entrepreneurs in a number of ways, said entrepreneurship expert Scott A. Shane.
In an article for the New York Times, Shane noted that business plans can help with new product development, accessing external capital, generating sales, obtaining raw materials and just surviving as a startup in general.
"Regardless of what measure of performance academics have looked at, research shows that writing a business plan has a positive impact," he wrote.
Shane proposed that there are a number of possible reasons why many of those starting a small business do not write a business plan, from just not knowing that business plans are so beneficial to a hurried ambition that leads entrepreneurs to skip steps.
Entrepreneurs unsure of how to approach the business plan can find resources on the government's CanadaBusiness.ca website, which provides free templates and sample business plans.
