The study, by Dr. Dan Geller (2007), found that of the micro-businesses that obtained outside funding, 75 percent were in business five or more years, while only 25 percent were in business less than five years. The Geller study included 228 micro-businesses with 25 employees or less. These findings indicate that established micro-businesses are more reliant on outside funding sources, and therefore are more likely to be impacted by the current credit crisis than younger micro-companies.

Dr. Geller’s study found a correlation coefficient of 0.3249 and a high significance level with a < 0.01 between the age of the business and success in securing outside funding. This correlation indicates that established companies were better prepared to approach outside funding sources by having a formalized strategic plan.

One major reason younger micro-businesses are less likely to develop a formalized strategic plan to present to lending institutions is lack of time – especially since traditional strategic planning methodologies, which were designed for very large companies, are complex and time consuming. To help owners of younger businesses practice strategic planning, even though they have very limited time and resources, Dr. Geller developed the Instant Strategistâ methodology, which allows one to develop a valid and practical strategic plan in less than eight hours. “Clearly,” says Dr. Geller, “even a busy entrepreneur can afford that.”

Dr. Dan Geller is the president of Instant Strategistâ (www.instantstrategist.com), a strategy-research company established in 1998 in San Rafael, CA, to help micro-businesses succeed through the practice of quick and easy strategic planning. The company offers a range of planning tools, including a book, software, audio and video CD’s, to help busy micro-business owners plan their way to success. For more information go to www.instantstrategist.com, e-mail info@instantstrategist.com, or call toll free at 866-343-5537.