What purposes are fulfilled by a Business Plan? - Vidyadip

Question

What purposes are fulfilled by a Business Plan?

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Answer

A business plan serves the following purposes:

Blue print: It provides a blueprint of actions to be taken by the firm in future.
Guidance: It guides the entrepreneur in raising and mobilising the factors of production.
Organisation: It serves as a guide to the entrepreneur in organizing and directing the activities of the entrepreneurial venture.
Progress: It helps in measuring the progress of the venture at various stages.
Communication: It communicates to investors, lenders, suppliers, etc. initiating the programmes of the business.

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