Are Planners Doers? Pre-Venture Planning and the Start-Up Behaviors of Entrepreneurs

Think writting a business plan will help you stay motivated? Think again. The SBA just published a research report last month (February) about pre-venture planning and the start-up behaviors of entrepreneurs in an attempt to determine whether or not the process of pre-venture planning is beneficial to the success of starting new ventures. According to the report, “some researchers suggest that pre-venture planning enables  entrepreneurs to surface their assumptions about factors leading to success, reduces delays in implementing critical activities, and helps them communicate their vision to others. Others suggest, however, that planning is a distraction from the real work of creating and building a new enterprise. Establishing the value of pre-venture planning may be important to nascent entrepreneurs.”

The study found that “the activity of business planning, and the level of formality of the business plan (i.e. whether the plan is written, informally written, or existing only in thought) does not, as a main effect, influence the rate at which entrepreneurs engage in more activities, their tendency to concentrate activities in a short period of time, or the overall timing of other startup activities. Early planning, however, appears to be an impetus for early action.”

However, it was found that “early formal planners are doers.” And it is the SBA belief that “challenging prospective entrepreneurs to accomplish a formal business plan early in the venture creation process will likely enable them to engage in additional start-up behaviors that could further the process of business creation. By engaging in venture creation activities earlier rather than later,” explains the SBA, “prospective investors and other venture supporters might ascertain earlier whether a fledgling idea has potential as an ongoing business.”

My advice to those of you in the process of developing your business plans is to not let its development distract you from actually launching the company. Just do it. That’s the heart of spizrinktum.

The complete report can be found here.

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