Why is a business plan valuable for an entrepreneur? Explain with the help of any four points.

Question

Accepted Answer

1. Helps in determining the viability of the venture in a designated market.

2. Helps in providing guidance in organizing planning activities - identifying resources, obtaining licenses, working out legal requirements. 3. Helps in satisfying concerns of each group interested in the venture.

4. Provides room for self-assessment and self-evaluation.

5. Helps realize unavoidable obstacles suggesting termination before further investment.

6. Serves as tool for funds procurement as investors focus on four Cs of credit.