Toptal

Executive Summary There is strong, data-driven evidence to suggest that business plans generate positive ROI on time and money invested in writing them. Individuals who write business plans are 2.5x as likely to start businesses. Business planning improves corporate executive satisfaction with corporate strategy development. Angels and venture capitalists value business plans and their financial models. Companies who complete business plans are 2.5x as likely to get funded. A back-of-the-envelope ROI calculation shows that early-stage companies can expect significant ROI in business planning, perhaps as much as 6,700%. Even if a small-scale early-stage venture seeking just $250,000 in capital spent almost $40,000 on business planning and another almost $40,000 on capital raising, it should still expect to “break even” on a probability-weighted basis. Larger early-stage ventures enjoy extraordinary probability-weighted returns on investment from business planning. Because the target net capital so greatly exceeds the money spent on

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