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Entrepreneurial Planning — Entrepreneurship STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceEntrepreneurshipEntrepreneurial Planning5 Marks
Question
What is the importance of Business Plan?
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Answer

The business plan:
  1. Helps in finding the viability of the venture in a designated market.
  2. Helps in providing guidance to the entrepreneur in organizing, planning activities as such:
    1. Identifying the resources required.
    2. Enabling obtaining of licenses if required, etc.
    3. Working out with legal requirements.
  3. Helps in satisfying the queries, and issues of each group of people interested in the venture.
  4. Provides room for self assessment and self evaluation.
  5. Helps entrepreneur to plan ways to avoid obstacles.
  6. Helps to realize the obstacles which cannot be avoided or overcome, suggesting to stop the venture while still on paper without investing further time and money.
  7. It reflects the entrepreneur's credit history, the ability to meet debt and interest payments, and the amount of personal equity invested.

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