Question
Highlight four benefits of a business plan to an entrepreneur.
Answer
- Facilitates acquisition of loans from financiers such as banks.
- Provides guidance for opening new or expanding existing business / adaptability.
- It acts as a management tool for the business / monitoring tool / identifies strengths and weaknesses.
- It’s a tool for evaluating business performance. - It lays the strategy to be used in marketing the products.
- It enhances the credibility of the business.
- It’s a motivational tool
- To avoid mistakes
- Proper allocation of resources.
- To determine how much resources are required e.g. labor, capital/ source of capital.
- Helps to identify the nature and scope of the market.
- Provides guidance for opening new or expanding existing business / adaptability.
- It acts as a management tool for the business / monitoring tool / identifies strengths and weaknesses.
- It’s a tool for evaluating business performance. - It lays the strategy to be used in marketing the products.
- It enhances the credibility of the business.
- It’s a motivational tool
- To avoid mistakes
- Proper allocation of resources.
- To determine how much resources are required e.g. labor, capital/ source of capital.
- Helps to identify the nature and scope of the market.
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