safe and sound business entity. Planning for an enterprise, as generally observed, is the
groundwork in preparation for making a proposed venture start and grows smoothly.
A. Importance of Planning
Many business ideas end up in complete failure as they are unable to produce the desired results
despite long and hard efforts. Of course, there is not a single practice model which would guide
through numerous critical situations and help translate ideas into well grounded realities. Recent
studies, however, suggest that there are noticeable similarities among the key preliminary
preparations that most successful entrepreneurs accomplish before they are ready to launch their
new ventures. These commonly observable facts serve to trace, in general, the way aspiring
entrepreneurs may make preparations so that they cannot only get off to a good start but also
transform their dreams into gainful business enterprises.
Many researchers, therefore, have a message that what every ambitious individual should note
about the right approach to make hard work result challenging business environment; secondly,
examine own abilities and limitations; thirdly, make an advance realization of problems that will
or may come; fourthly, determine whether a proposed venture can be expected to succeed and
grow in the long run; and, finally, if assured or prospects, carefully plan the course of conduct of
related activities essential to sustainable progress. Thus, business or project planning is regarded
as fundamental to a good start in entrepreneurial career.
B. Project Plan - A Basic Document
In simple words, a project plan is a basic document which gives an explicit but precise account
of what one has in mind to achieve and, in that context, it defines: What will have to be done?
When will be done? How will be done? Who will do? How much will it cost?
A project plan spells out the principal features and the future prospects of a proposed business.
Besides, it provides analyses of and insights into vital issues that are to be attended to and sorted
out with an eye to achieving the ultimate goal. Many prefer to call it an orderly presentation of a
detailed programme of actions for doing, making or achieving something proposed for
consideration and acceptance. Others suggest that a project plan is a well defined written
argument, based on relevant facts, figures and estimates. It portrays an overall picture of a
business proposal, attempts to justify its technical feasibility as well as commercial success and
makes clear suggested course of actions in distinguished sections. Some authors are of the view
that the phrases project plan, business plan, business schemes, feasibility plan and feasibility plan
and feasibility report are alike in meaning or significance. Accordingly, these expressions are
frequently used interchangeably.
C. Project Plan-Benefits and Utilities
A project plan serves as a useful tool to bring greater success in attaining objectives of a
business. That being the case, some of the major benefits and utilities derivable from this
• Highlights basic elements. Regardless of size, nature, main objective and location of a venture,
as also investment, risk and uncertainty involved in it, a project plan lays stress on the basic
elements common to almost every business. The basic elements include ownership; business