State any one importance of writing a business plan for each of the gi

1.	State any one importance of writing a business plan for each of the given interest groups :
Answer» (i) Investors : As the investors/lenders focus on the four Cs of credit : character, cash flow, collateral and equity contribution, it is the business plan which reflects the entrepreneur’s credit history, the ability to meet debt and interest payments, and the amount of personal equity invested thus serving as an important tool in funds procurement. (ii) Entrepreneurs: (a) Helps in determining the viability of the venture in a designated market (b) Helps in providing guidance to the entrepreneur in organizing his/her planning activities as such: Identifying the resources required Enabling obtaining of licenses if required etc. Working out with legal requirements as desired by the government. (c) Provides room for self-assessment and self-evaluation, requiring entrepreneur to think through various scenario and plan ways to avoid obstacles

State any one importance of writing a business plan for each of the given interest groups :

Answer»

(i) Investors : As the investors/lenders focus on the four Cs of credit : character, cash flow, collateral and equity contribution, it is the business plan which reflects the entrepreneur’s credit history, the ability to meet debt and interest payments, and the amount of personal equity invested thus serving as an important tool in funds procurement.

(ii) Entrepreneurs:

(a) Helps in determining the viability of the venture in a designated market

(b) Helps in providing guidance to the entrepreneur in organizing his/her planning activities as such:

Identifying the resources required
Enabling obtaining of licenses if required etc.
Working out with legal requirements as desired by the government.

(c) Provides room for self-assessment and self-evaluation, requiring entrepreneur to think through various scenario and plan ways to avoid obstacles

State any one importance of writing a business plan for each of the given interest groups :

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