Question

Explain how can spending time researching and writing a business plan save entrepreneur time and money in the short and long term

Answer 1

Researching and writing a business plan can help the entrepreneur to save efforts, resources, money and time otherwise invested to figuring out ways at each step or process in both long as well as short term through predetermining the strategies and actions to be taken at each step to ensure least discrepancies. Outlining a research plan in long term will act as a roadmap for entrepreneur to identify any hurdles or risks involved in conducting operations for which necessarily provisions are kept at place which help to overcome or face these risks without creating disruption in operations thus facilitating smooth process in long run resulting in least waste of money, time and resources. In long term It provides direction to business while seeking the right and profitable investments for business which will provide maximum returns to business thus maximizing its profits.

Spending time on a well written and researched business plan in short run helps the enterpreneur to reflect on the various asset or capital requirements of business from time to time so that delays or shortages are prevented, it helps the entrepreneur to create efficient marketing strategies kn short run which will aid it in utilising the business resources effectively to attain specific sales targets effective sales. Moreover a well researched business plan in short term helps to hire right talent and guide in setting both long term as well as short goals for management and employees which improve performance and reduce cost for business. Business plans thus help the entrepreneur to find viability of business in its industry, reduce the waste time in figuring out each task, prevent delays and assist it in keeping costs low.

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