Question

Enlist any three points of importance in framing the business plan.

Answer 1

The business plan

1. helps in determining the viability of the venture in a designated market
2. helps in providing guidance to the entrepreneur in organizing his/her planning activities as such:
   1. identifying the resources required
   2. enabling obtaining of licenses if required etc
   3. working out with legal requirements as desired by the government.
3. helps in satisfying the concerns, queries, and issues of each group of people interested in the venture.
4. provides room for self-assessment and self-evaluation, requiring entrepreneur to think through various scenarios and plan ways to avoid obstacles.
5. though not desirable, at times, business plan helps to realize the obstacles which cannot be avoided or overcome, suggesting to terminate the venture while still on paper without investing further time and money.
6. as the investors/lenders focus on the four Cs of credit : character, cash flow, collateral and equity contribution