Question

State any two points why Business Plans' are considered as decision-making tools.

Answer 1

1. Attracting Investors and Funding: The purpose of business plans is to draw in investors and raise capital. They provide prospective investors confidence in the business's viability and profitability by presenting the objectives and financial projections in an organised manner. 
2. Guidance for Strategic Planning: By offering a concise summary of goals and tactics, a business plan assists entrepreneurs in making well-informed choices regarding resource allocation and expansion prospects. It aids in prioritisation and the detection of possible roadblocks. Some decisions, like when to rent a new space or expand the business, are not always easy to make. With a clear business plan in place, you can determine the specific times or goals you must meet to make these important decisions.