A change of plan

Written on the 3 December 2010

FEB 2010

Queensland University of Technology (QUT) has made some surprising findings halfway through its record study of new SME’s.

In the largest ever study of its type, QUT’s Comprehensive Australian Study of Entrepreneurial Emergence (CAUSEE) is tracking the development of 1400 new and young firms in Australia.

The million-dollar, four year study aims to provide advice for all budding entrepreneurs; its first major conclusion questioning the value of business plans.

Associate Professor Paul Steffens, from QUT’s Faculty of Business says the research has found rigid business plans did not benefit start-up businesses.

“The study found that a written plan, whether informal or formal, has a negative effect on getting operational and achieving a positive cash flow, which is a surprising result,” says Steffens.

“Using the business plan as an action plan to follow step by step tends to be particularly counter-productive, whereas revision of the business plan is associated with positive performance.”

Steffens says this finding is likely to reflect how start-up businesses face a high degree of uncertainty and require adaptability to survive.

“Our research shows that start-ups must be prepared to adapt their venture in light of customer reactions,” he says.

“The first version of the business might not be the one that flies. Plans that lock the business too firmly into a pre-determined path will prevent it from taking new opportunities, while regular revision of a business plan will help the start-up to be flexible.”

The CAUSEE project is funded by Australian Research Council grants ($718,000) and further sponsorships with BDO and the National Australia Bank.


Latest News

SURFSTITCH DOWNGRADES EARNINGS AS SHARES PLUNGE 25 PER CENT IN A DAY

TROUBLED online sports clothing retailer SurfStitch is considering selling off more of its assets and will close i...

GOLD COAST AIRPORT RECORDS STRONGEST PERIOD IN HISTORY

The Gold Coast Airport recorded its strongest April in history for passenger numbers, supported by a growing numbe...

THE TRAVEL STARTUP THAT EVICTED THE HOUSE-SITTER

YOU'VE used Expedia to book the flights, AirBnB to find accommodation, and Uber to get around in the new city and...

MELBOURNE'S $200M RIALTO PROJECT NEARS COMPLETION AFTER 10 YEARS OF PLANNNG

IT'S BEEN 10 years in the planning and had at least 10 different architects and has involved the acquisition o...

Related News

SURFSTITCH DOWNGRADES EARNINGS AS SHARES PLUNGE 25 PER CENT IN A DAY

TROUBLED online sports clothing retailer SurfStitch is considering selling off more of its assets and will close i...

AUSCANN RESUMES TRADE AFTER $12 MILLION CAPITAL RAISING

IT'S BEEN a big few days for medical cannabis manufacturer AusCann (ASX: AC8), as the company emerged from a trad...

APN AND oOh!media MERGER CALLED OFF, CEO 'AMAZED' AT ACCC'S DECISION

THE PROPOSED $1.6 billion merger between Australia's two largest advertising groups, APN (ASX: APO) and oOh!me...

ANALYSTS FORECAST A GRIM CHOICE FOR OROTON: SELL UP OR QUIT THE ASX

FOLLOWING a warning to the market and a subsequent trading halt earlier in the week which has shaved more than $11...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter