Wednesday, January 24, 2007

Business Plans and Babson

Guy Kawasaki on the need for business plans, including a study just released by Babson College.
Abstract: This study examined whether writing a business plan before launching a new venture affects the subsequent performance of the venture. The data set comprised new ventures started by Babson College alums who graduated between 1985 and 2003. The analysis revealed that there was no difference between the performance of new businesses launched with or without written business plans. The findings suggest that unless a would-be entrepreneur needs to raise substantial startup capital from institutional investors or business angels, there is no compelling reason to write a detailed business plan before opening a new business.
Kawasaki's conclusion: However, don’t draw the wrong conclusion from this study: “Analysis, planning, vision, and communication are unnecessary.” This isn’t true. What is true is that a business plan should not take on a life of its own. It is a tool ... and may help you get your team working as a team. But it is not an end in itself.

The Babson News Blog is a fascinating look at startups created by their alums.

The latest GEM (Global Entrepreneurship Monitor) report, lead by Babson and the London School of Business, was released on Jan 9.

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Anonymous C.C. Chapman said...

Great to see the Babson PR team getting some love. I helped them set up this blog when I was the Digitial Marketing Manager there and it shows how a blog can be used for so much more then traditional PR.

I've moved on, but they've got a great team there and it was cool to see this post come up in my reader today since I read your blog all the time.

7:47 AM  

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