How a detailed business plan and clear vision can help lead to long-term success

Securing financing for a new business venture is a somewhat daunting task - especially given current economic conditions.

Entrepreneurs having trouble securing bank loans are increasingly turning to friends and family to borrow money or are connecting with willing investors over social networks on the internet.

But attracting investors may be easier than it seems with a solid business plan, says a new study.

A report in the Journal of Finance says that investors interested in financing start-ups are going to look first and foremost to the strength of the business plan and secondarily to the capabilities of the management team in place.

Research compiled by Steven N. Kaplan, Berk A. Sensoy and Per Stromberg from a range of start-ups found that new businesses with a strong plan in the early stages was key as very few of the successful start-ups they studied changed their business direction.

According to the study, good management is also important, but can be replaced should the situation warrant it.

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