Mahesh is a young man of 20 years. He has completed a tailoring course from an industrial training institute. He wants to start a big size tailoring shop in a modern locality where young men and women working in various multinational companies live. He went to one of his friends who had completed a diploma course in textile designing to discuss about the opening of the tailoring shop. His friend advised him to prepare a written document describing formally all the relevant external and internal elements involved in starting a new venture. It will not only help in understanding the feasibility and viability of the proposed venture but also facilitate in assessing and making provisions for the bottlenecks in the progress and implementation of idea. State any six points of importance of the concept discussed by Mahesh with his friend.

Question

Accepted Answer

Six points of importance of a business plan: (i) Helps determine the viability of the venture in a designated market. (ii) Provides guidance in organizing planning activities such as identifying required resources and obtaining licenses. (iii) Helps satisfy concerns, queries of interested parties. (iv) Provides room for self-assessment and self-evaluation. (v) Helps realize unavoidable obstacles suggesting termination before further investment. (vi) Serves as an important tool for funds procurement.