What is the importance of Business Plan? - Vidyadip

Question

What is the importance of Business Plan?

✓

Answer

The business plan:

Helps in finding the viability of the venture in a designated market.
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.
Helps in satisfying the queries, and issues of each group of people interested in the venture.
Provides room for self assessment and self evaluation.
Helps entrepreneur to plan ways to avoid obstacles.
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.
It reflects the entrepreneur's credit history, the ability to meet debt and interest payments, and the amount of personal equity invested.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "5 Marks Question" from Entrepreneurial Planning→Entrepreneurial Planning — all question types→Entrepreneurship STD 12 Commerce question papers→CBSE Board STD 12 Commerce question papers→CBSE Board question paper generator→

Similar questions

Mention some of the prominent synergies that could arise from the deal between TATA Steel and Corus.

What are the disadvantages of franchising to the franchisee?

Each type of business differs in which terms or aspects?

Answer each of these questions in about fifty words:
State some mushrooming sources of raising finance in the business.

Explain the factors affecting the formulation of a financial plan.

A partnership deed should contain which details?

Twitter Tweets
Twitter-named after the sound of chirping birds in 2006, has today established itself as a cultural touchstone, growing from a few thousand geeky users to more than 200 million today.
Most of twitter's revenue comes from advertising. Research firm marketer estimates that Twitter will generate $ 582.8 million in worldwide ad revenue for 2013, up from $288.3 million in 2012.
Twitter's money making potential has minted the company with an estimated market value of $ 10 billion, based on the appraisals of venture capitalists and other early investors who have been helping to fund the business so far.
Aiming for a sustainable future, Twitter, as has been long expected, tweets 'It will go public'.
The law that allowed Twitter to file its initial IPO documents confidentially is called the Jumpstart Our Business Start-ups Act (JOBS) President Barack Obama signed the law in 2012. It is designed to make it easier for small businesses and startups to grow and create jobs. Do you understand the significance of all this........???
Going public could give Twitter the muscle to become the next facebook or Apple - says one analyst.
The capital gains from going public will likely allow the company to make solid investments across the board in hiring, operations and acquisition- that's the power of finance.

What is the full form of JOBS?
Which source of raising finance has been opted for, by Twitter?
Where will the company invest the funds so generated?

“An enterprise that does not grow will eventually die.” Explain this statement with suitable examples.

'Environmental factors exert influence upon each other and do not operate in isolation? Discuss.

Give advantages and disadvantages of cost plus pricing method.