Questions and Answers
According to the Department of Trade and Industry (DTI), through the Bureau of Small and Medium Enterprise Development (BSMED), the entrepreneur still needs to make a ______ to reduce the risk of losing money invested in a poorly researched or unstudied business idea. The entrepreneur should find out where one's money is going before letting go of it.
business plan
A business plan is important to various parties. Among those who need ______ are the management team, shareholders, bankers or these stakeholders will have to be informed about what are the purposes, directions, core business, and financial situation of the business venture from the time it will start and in the next few years based on its forecast.
business plans
A well-prepared ______ can be back-up support to convince possible sources of capital, especially banks, that something good will come out of the business idea.
business plan
It is always ______ to foresee sudden increases or decreases in the demand for the product or service.
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As a road map on unfamiliar territory, it allows the ______ to estimate how the business will perform in the future and to prepare for contingencies in case things will not turn out as planned.
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A business plan is a management tool, which focuses on the nature of the business in a logical and organized manner. It is a document that guides an entrepreneur on what, how, and when to do or implement enterprise goals and objectives. The business plan covers both a study of whether or not a product or service idea is both ______ and feasible.
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Being possible involves the availability of manpower, money, machinery, materials, utilities, and infrastructure to set up a business; whereas being feasible involves the area of financing and profitability of a business idea. The business plan is a ______ of the business that the entrepreneur would like to start.
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It aims to establish if a business idea will bring in a fair return on one's investment, will be beneficial to the society, and will bring no harm to the environment when it is ______.
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The goals of a business plan are to assess the feasibility of the business idea, develop business strategies to make the business idea ______, and to use it for obtaining resources, especially loans from financial institutions like banks.
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There are many business ideas that may look attractive to the entrepreneur at first, but not necessarily ______.
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Study Notes
Importance of Business Plan
- An entrepreneur needs to make a business plan to reduce the risk of losing money invested in a poorly researched or unstudied business idea.
- A business plan is essential for various parties, including the management team, shareholders, and bankers.
Purpose of Business Plan
- A well-prepared business plan serves as back-up support to convince possible sources of capital, especially banks, of the viability of a business idea.
- It allows entrepreneurs to estimate how the business will perform in the future and prepare for contingencies.
- A business plan is a management tool that guides entrepreneurs on what, how, and when to implement enterprise goals and objectives.
Feasibility of Business Idea
- A business plan assesses the feasibility of a business idea, considering whether it is possible and feasible.
- Possible refers to the availability of resources such as manpower, money, machinery, materials, utilities, and infrastructure.
- Feasible refers to the financing and profitability of a business idea.
Goals of Business Plan
- The goals of a business plan are to assess the feasibility of the business idea, develop business strategies, and obtain resources, especially loans from financial institutions like banks.
Benefits of Business Plan
- A business plan helps entrepreneurs foresee sudden increases or decreases in the demand for a product or service.
- It serves as a roadmap for entrepreneurs, guiding them through unfamiliar territory.
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Description
Learn about the nature and importance of business plans as a management tool to guide entrepreneurs in implementing enterprise goals and objectives. Understand the study of feasibility and the factors involved in setting up a business.
