Business planning does make a difference

There has been a lot of discussion over the years as to whether or not there is a link between planning a business (actually writing out a business plan vs just winging it) and actual startup. A recent research report was released this week that indicates that the act of writing a business may be a positive indicator of actually making it to the startup phase.
I struggle with this issue quite a bit since I’m in the business of encouraging folks to plan and get their planning down on paper before committing scarce resources. On the other hand I don’t want to contribute to “analysis paralysis” which can occur when aspiring farmers allow themselves to get mired in all the information out there.
There is a difference between good research which should have defined objectives along with a timeline and endless researching where you keep looking hoping that the next bit of information will offer unequivocal proof that your business idea will be successful.
Anyway, the research article is available at http://www.sba.gov/advo/research/rs339tot.pdf. If you work with entrepreneurs…check it out!