The benefits of a business plan are as follows:
1. Risk Management
With the help of business plan, all aspects of the new venture are carefully analyzed. This helps the entrepreneur to deal with risks and uncertainties that may arise.Business plan also provides contingency plans for such situations.
2. Objectivity
A business plan helps the entrepreneur to view the venture objectively and critically. Close scrutiny of assumptions made about the venture's success is done.
3. Communication
The completed business plan helps entrepreneur to communicate with outside parties. Financial sources can use it for investment purposes.
4. Implementation
The business plan serves as a tool for guiding the implementation of new venture toward success.
5. Control
The business plan establishes standards for performance as bench marks. Actual performance can be compared with standards to take corrective actions.
6. Efficiency
The business plan improves efficiency of new venture by minimizing waste. Results can be achieved
2. Objectivity
A business plan helps the entrepreneur to view the venture objectively and critically. Close scrutiny of assumptions made about the venture's success is done.
3. Communication
The completed business plan helps entrepreneur to communicate with outside parties. Financial sources can use it for investment purposes.
4. Implementation
The business plan serves as a tool for guiding the implementation of new venture toward success.
5. Control
The business plan establishes standards for performance as bench marks. Actual performance can be compared with standards to take corrective actions.
6. Efficiency
The business plan improves efficiency of new venture by minimizing waste. Results can be achieved
