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Importance of Planning the Business
Business planning is important to entrepreneurs. The reasons for making a business plan are as follows:
● Estimate of required funds: Once you know the products and sales destinations, the next step is to estimate the
amount it will take to start a business. Without an estimate of the amount of money, an entrepreneur could make a
large investment or start a business without enough money to run the business.
● Estimating the amount of material required: Knowing the amount of material required lets the entrepreneur
determine the cost of manufacturing a product or the cost of providing a service.
● Standing out: A business plan, entrepreneurs need to think about how they can make their business different and
special compared to other similar businesses.
● Goal Setting: Another important reason for the plan is to set ambitious yet realistic goals. These goals motivate
entrepreneurs to work hard.
Improving Business Growth
After starting a business, entrepreneurs need to think about how to continue to improve and grow by adding value to
their business for attracting customers. The following principles need to be considered:
● Quality: Business owners can improve their business by improving the quality of the products or services offered to
their customers. This helps them get noticed in the business and also justifies higher prices.
More Cash flow will help your business grow. For example, in the tea business, entrepreneurs can improve the quality
of the product by offering various varieties of tea in different quantities.
● Scale-up: Scaling-up means growing your business by attracting more customers. There are a variety of ways
companies can reach out to more customers. One such path is to go to different geographical locations where you
can find new customers. For example, sell tea in various markets, office locations where many people work, rather
than in any highly competitive market.
● Offer Alternatives: Another way to grow your business is to provide some offers to your customers. Alternatives
mean products and services similar to the ones already in the market. For example, selling phone covers with mobile
phones.
At a Glance
• An entrepreneur is a person who tries to satisfy the needs of a customer through new ideas or business
methods and makes a profit in return.
• Entrepreneurship is the process of developing a business plan, starting and running a business with
innovation, meeting customer needs and generating profits.
• A manufacturing company is involved in developing the raw materials into finished products to meet the
needs of its customers.
• Trading companies do not manufacture goods or products. They only facilitate the process of the finished
product to be brought from the production unit to the purchaser or customer.
• A business activity that you can't see, but that benefits the buyer, is called a service business.
• Every entrepreneur has certain unique qualities that make him successful.
• Confidence means believing in yourself and your approach. Confidence helps business owners take the first
step to start a new business, and then try new things to grow their business.
• Independence means the ability to work alone and the self-confidence to make decisions. It is the
entrepreneur's responsibility to decide what kind of work to do and how to do it.
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