Which of the following statements is correct about a business plan?
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Business plan is necessary only for big companies.
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Business plan lays down the best growth path and strategy.
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Business plan is a substitute for strategic planning.
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Business plan should emphasise on ideas and concept only.
Business plans are for small as well as large companies. A small company can benefit from even a simple plan that is prepared in earnest.
Strategic plan draws the clear layout of a specific business’s venture; vision, mission, objectives, competencies, managerial abilities, technical proficiencies and sources of fund. A business plan is a document that summarises the operational and financial objectives of a business and contains the detailed plans and budgets showing how the objectives are to be realised. Thus, business plan cannot replace strategic plan. It lays down the best growth path and strategy.
Business plan does not emphasise on ideas and concepts only. The process of developing a business plan also involves determining the resources required, obtaining those resources and successfully managing the resulting venture.