Mohan Singh wants to start a dairy products business in his village in Gurdaspur district of Punjab. One day he was discussing this with his friend Makhan Singh. Makhan Singh told him that to start a business, first, he should prepare a good business plan so that he may not face any problem in the future. Mohan Singh requested him to explain the importance of a business plan. State any two points of importance that Makhan Singh might have explained to Mohan Singh.

Question

Accepted Answer

Two points of importance of a business plan: 1. Helps determine the viability of the venture in a designated market: A business plan enables the entrepreneur to assess whether the proposed venture is feasible.

2. Provides guidance in organizing planning activities: It helps identify required resources, obtain necessary licenses, and comply with legal requirements.