Benefits of a business plan to the Entrepreneur

• The business plan forces the entrepreneur to look at the whole business. It also helps him or her to maintain a “proactive” attitude.

• The time, efforts, research and discipline needed to put together a formal business plan force the entrepreneur to view the venture critically and objectively. The competitive, economic and financial analyses included in the business plan subject the entrepreneur to close scrutiny for his or her assumptions about the venture’success.

• The business plan can help the owner manager crystallise and make his ideas focused, hence guiding the venture towards success.

• Since all aspects of the business venture must be addressed in the plan, the entrepreneur develops and examines the operating strategies and the expected results for the outside evaluators.Thus, the business plan may attract partners and qualified employees as well.

• A business plan can help clarify and communicate the entrepreneur’s goals and objectives.

• It serves as a measurable benchmark against which to track performance.

• A business plan also provides the entrepreneur with a communication tool for outside financial sources. In this regard, the business plan acts as a vehicle for attracting external finance needed by the business.

•  A business plan constitutes a framework for facilitating daily decision-making and for enhancing better management