The Nature of Planning

The benefits of planning include ALL the following EXCEPT:

• ensures that resources are properly combined

• helps to define the culture of the business

• uses available resources

• allows for focus on desired goals

Which of the following best describes "planning".

• Planning gives an overview of the business structure

• Planning holds you accountable.

• Planning defines a clear path get where you want to be.

• Planning is difficult.

Informal planning is a form of planning that is mostly in the head of the entrepreneur and lacks continuity.

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Not much is written down when formal planning takes place.

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Formal planning

• establishes direction for the entrepreneur

• is easy

• does not require much work

• is interesting

A business plan is document specifying the business details prepared by an entrepreneur prior to opening a new business.

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The main reasons you should write a business plan is to acquire financial backing.

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Before you start a business you should ask yourself, who are the potential customers for my product/service and why will they pay me?

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Measuring milestones is the initial planning of the resources that you may need for the business.

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Formal planning refers to a planning in written whereas informal planning refers to an informal planning occurs on the spot.

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