Before you dive into creating a business plan, you need to do your homework on past businesses first. Why? Because learning from history is the smartest shortcut to success.
Think about it – why stumble through the same mistakes others have already made when you could just… not do that? By researching businesses that came before you, you’ll build a stronger, data-driven plan that gives you a fighting chance in today’s competitive landscape.
Why Researching Past Businesses Is Crucial Before Writing Your Business Plan
Ever hear that quote about those who don’t learn from history being doomed to repeat it? That applies double in business.
Studying business history isn’t just for academics – it’s a practical tool that helps you identify what strategies have actually worked, what spectacular failures to avoid, and how markets evolve over time.
The legendary economist Joseph Schumpeter argued that entrepreneurship is deeply connected to economic and industrial change – meaning you can’t fully understand how to succeed without looking at the historical patterns of businesses in your industry.
How Past Business Research Makes Your Business Plan Actually Useful
Your business plan isn’t just some document you create to please investors then never look at again. It should be your road map – guiding your decisions and keeping you from driving blindly into a ditch.
Research on similar businesses provides critical insights for:
Market Analysis: Understanding how customer preferences evolved over time helps you create realistic projections instead of fantasy numbers. Did you know that market research increases your success rate by up to 80%?
Competitive Analysis: What killed your competitors? What made others thrive? These lessons let you differentiate effectively and anticipate challenges before they crush you.
Customer Segmentation: Learning how previous businesses targeted customers helps you position your products precisely where they’ll get traction.
Operational Insights: Why reinvent the wheel? Historical case studies reveal best practices in logistics and operations that you can adopt immediately.
Financial Planning: Looking at financial trajectories of similar businesses helps you create credible projections that won’t make investors laugh you out of the room.
How to Actually Research Past Businesses (Without Dying of Boredom)
To get maximum value from your business history research:
Find businesses that faced similar challenges or operated in comparable markets – even if they’re not in your exact industry.
Mix quantitative data (sales numbers, growth rates) with qualitative sources (case studies, interviews with industry veterans). According to Harvard Business Review, this balanced approach leads to more nuanced insights.
Perform a SWOT analysis based on your research to identify competitive advantages and potential pitfalls.
Use what you learn to set SMART goals that are actually achievable, not just wishful thinking.
Stay updated on evolving research methods – business intelligence tools have revolutionized how we extract insights from past data.
Historical Research: Your Secret Weapon for Reducing Risk and Getting Funded
Writing a business plan informed by actual history helps you test your ideas before burning through cash.
By understanding why similar businesses succeeded or crashed and burned, you can pivot early or refine strategies – massively reducing your risk. This preparation is exactly what investors are looking for.
A CB Insights analysis found that “running out of cash” and “no market need” were top reasons startups fail – both issues that solid historical research helps prevent.
Think about it from an investor’s perspective: Would you rather fund someone who says “trust me, this will work” or someone who says “here’s how similar businesses evolved, here’s what we learned, and here’s how we’re positioned to succeed”?
How to Weave Research Into Your Business Plan Without Boring Everyone
Don’t just dump research facts into your plan – integrate them strategically:
| Business Plan Section | How to Use Your Research |
|---|---|
| Executive Summary | Briefly mention historical context that validates your opportunity |
| Market Analysis | Use historical trends to justify your market size claims |
| Competitive Analysis | Include insights from competitors’ historic wins and fails |
| Marketing Strategy | Apply consumer behavior patterns to create targeted messaging |
| Operations Plan | Adopt proven frameworks and avoid known operational traps |
| Financial Projections | Base forecasts on actual patterns seen in similar business models |
The Bottom Line
Researching past businesses isn’t optional – it’s an essential first step before creating your business plan. It grounds your vision in reality instead of fantasy.
This research-driven approach helps you make smarter decisions, reduce risks, and create a narrative that actually convinces stakeholders you know what you’re doing.
Remember: every wild success and spectacular failure in business history contains lessons that could save your venture. Why learn everything the hard way when others have already paid the tuition for those lessons?
By understanding business history, you’re not just another entrepreneur with a dream – you’re a strategic player equipped with the wisdom of those who came before you.
