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Outline two reasons why an entrepreneur should prepare a business plan - Leaving Cert Business - Question 10 - 2019
Question 10
Outline two reasons why an entrepreneur should prepare a business plan. (i) (ii)
Worked Solution & Example Answer:Outline two reasons why an entrepreneur should prepare a business plan - Leaving Cert Business - Question 10 - 2019
Step 1
(i) To set out clearly the objectives and targets of the firm.
Answer
A business plan helps an entrepreneur define clear objectives and targets that align with the vision of the firm. This clarity ensures that the business has a structured pathway to follow, making it easier to measure progress and success.
Step 2
(ii) To identify resources required.
Answer
Preparing a business plan allows an entrepreneur to determine the resources necessary for operations, including human, financial, and physical resources. This helps in effective planning and allocation of resources, ensuring the business runs smoothly.