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Business Plan

A business plan is a written document that describes in detail how a business usually a startup-defines its objectives and how it is to go about achieving its goals. A business plan lays out a written roadmap for the firm from marketing, financial, and operational standpoints.

Business plans are important documents used for the external audience as well as the internal audience of the company. For instance, a business plan is used to attract investment before a company has established a proven track record or to secure lending. They are also a good way for companies’ executive teams to be on the same page about strategic action items and to keep themselves on target towards the set goals.

Although they’re especially useful for new businesses, every company should have a business plan. Ideally, the plan is reviewed and updated periodically to see if goals have been met or have changed and evolved. Sometimes, a new business plan is created for an established business that has decided to move in a new direction.

Business plans help you run your business

  • A good business plan guides you through each stage of starting and managing your business.
  • You’ll use your business plan as a roadmap for how to structure, run, and grow your new business.
  • It’s a way to think through the key elements of your business.
  • Business plans can help you get funding or bring on new business partners.
  • Investors want to feel confident they’ll see a return on their investment.
  • Your business plan is the tool you’ll use to convince people that working with you – or investing in your company – is a smart choice.
  • Good business plans should include an executive summary, products and services, marketing strategy and analysis, financial planning, and a budget.
  • Businesses may come up with a lengthier traditional business plan or a shorter lean startup business plan.
  • Startup companies use business plans to get off the ground and attract outside investors.