Page 91 - DMGT310_ENTREPRENEURSHIP_AND_SMALL_BUSINESS_MANAGEMENT

Entrepreneurship and Small Business Management Hitesh Jhanji, Lovely Professional University

Notes Unit 7: Building the Business Plan

CONTENTS
Objectives

Introduction
7.1 Concept and Scope of Business Plan
7.2 Value and Importance of a Business Plan

7.3 Preparation and Evaluation of Business Plan
7.3.1 Preliminary Investigation
7.3.2 Idea Generation

7.3.3 Environmental Scanning
7.3.4 Feasibility Analysis
7.3.5 Project Report Preparation

7.4 Summary
7.5 Keywords
7.6 Review Questions
7.7 Further Readings

Objectives

After studying this unit, you will be able to:
Explain the concept of business plan

Discuss the scope of business plan
Describe the value and importance of a business plan
Explain the steps involved in building a business plan

Introduction

In the previous unit, we dealt with the concept of grassroots entrepreneurs. This unit will help
you to understand the concept of business plan and how to prepare a business plan. The various
sections and sub-sections of this unit will also summarize the feasibility study and importance
of a business plan. A company’s business plan is one of its most important documents. It can be
used by managers and executives for internal planning. It can be used as the basis for loan
applications from banks and other lenders. It can be used to persuade investors that a company
is a good investment. For start-up ventures, the process of preparing a business plan serves as a
road map to the future by making entrepreneurs and business owners think through their
strategies, evaluate their basic business concepts, recognize their business’s limitations, and
avoid a variety of mistakes.
Virtually every business needs a business plan. Lack of proper planning is one of the most often
cited reasons for business failures. Business plans help companies identify their goals and
objectives and provide them with tactics and strategies to reach those goals. They are not historical

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