Question

‘Preparing a good business plan can’t guarantee success, but it can go a long way towards reducing the odds of failure.' Justify this statement by giving any two points.

Answer 1

The entrepreneur, potential investors, venture capitalists, banks, financial institutions, new hires, suppliers, clients, consultants, and everyone else attempting to become acquainted with the venture, its aims, and objectives will all find value in the business plan.

The business plan:

1. Aids in assessing the venture's feasibility in a specific market.
2. Aids in giving the business owner direction for setting up his or her planning tasks as follows:
   1. identifying the resources required
   2. enabling obtaining of licenses if required etc.
   3. complying with the government's desired legal criteria.