Question

Business plans enable entrepreneurs to achieve their goals”. To what extent do you agree with this statement?

Answer 1

Business plans are heart and soul of any business. Without plans no one can be successful.

Business plans are blueprint to achieve goals.

Entrepreneurs plan their goals to make their business successful.

Planning is an essential function which helps in achieving goals and also gaining a competitive advantage.

Setting goals, setting targets, devising plans is primary function. Plans are road map to destination.

Business plans include qualitative and quantitative goals. The amount of sales to be made and profit to be earned.

The competitors are analysed to know what is the strength of their business and what is the weakness. This helps in gaining competitive advantage.

Similarly, substitute of their product is analysed. This helps in understanding the price and cost. Only after understanding this can be price of their product be set.

Without setting plans this cannot be achieved. Setting goals helps in motivating employees as well as owners, entrepreneurs.

Without goals the way ahead seems bleak. Only after setting goals one can know in which to move ahead. Business plan is a blueprint. After devising the plan, the entrepreneurs follow that plan.

Firstly the plan to start the business is required. Only after that can business be started. Without plan, no one would know the amount of expenses that are to be done to start the business.

Similarly, after starting business, plan is required for every activity. Plan is required for sales to made, for acquiring human resources, for reducing costs, for increasing profit.

Achieving goals gives a sense of accomplishment to everyone. Only after achieving one goal can other goal be devised and plan be made.

Planning starts with thinking about company's future, how large business is to be build and how to develop the business.

Devising plans helps in proper allocation of human and financial resources and also keeps in target in mind. In times of scarcity, it helps in deploying resources in a better way. Plans help in taking proper decisions. Through developing plans, it helps in gaining deeper understanding of market needs and business needs.

Business plans are not stone and need to revised time and again. When actual results come, they are compared to set targets. Then comparison is made to identify the differences.This helps in setting revised targets for future.

Thus business plans helps in achieving targets for entrepreneurs. And not just entrepreneurs, everyone needs business plans in order to be successful.

Hence, business plans enable entrepreneurs in achieving business goals.