Session 7: Business Planning
Unit 4: Entrepreneurship Skills
Textual Question-Answers
Check Your Progress
A. Subjective Questions
1. What is the meaning of business planning?
Ans: Business planning is the process of setting goals for a business,
deciding the strategies to achieve them, and preparing a detailed plan to manageresources, operations, and risks effectively.
2. Why is business planning important?
Ans: Business planning is important because it helps the entrepreneur‘set clear objectives’, ‘manage resources efficiently’, ‘reduce risks’, ‘anticipatechallenges’, and ‘measure progress’ for successful business growth.
3. What are the important parts of a business plan?
Ans: The important parts of a business plan include:
Executive summary: Overview of the business idea and goals.
Business description: Details of products or services offered.
Market analysis: Understanding customers, competitors, and market trends.
Marketing plan: Strategies to promote and sell products.
Operations plan: How the business will run day-to-day.
Financial plan: Budget, funding, and profit projections
4. How can an entrepreneur improve and grow a business? State the principles.
Ans: An entrepreneur can improve and grow a business by following theseprinciples:
Customer focus: Continuously understand and satisfy customer needs.
Innovation: Introduce new products, services, or processes.
Quality improvement: Maintain high standards in products and services.
Efficiency: Reduce costs and optimize resources.
Expansion planning: Explore new markets or diversify offerings.
Continuous learning: Adapt to new trends, technologies, and businesspractices.
