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Why is a business plan important?

A business plan is a written document that clearly defines the goals of a business and outlines the methods for achieving them. A business plan acts as the management and financial blueprint for a business start-up.  It is essential in creating and maintaining a profitable operation of a business venture and explains specifically how a business will function - specifically how a business will be capitalized, managed, and marketed. Highlighting details that tell your business' story, and what sets you apart from your competition is also critical.

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• A blueprint and communication tool for your business. A device to help you, the owner, set out how you intend to operate your business. A road map to tell others how you expect to get there.
• A written document that describes a business, its objectives, strategies, market and financial forecast.
• A document that spells out a company's expected course of action for a specified period, usually including a detailed listing and analysis of risks and uncertainties. For the small business, it should examine the proposed products, the market, the industry, the management policies, the marketing policies, production needs and financial needs. Frequently, it is used as a prospectus for potential investors and lenders.
• A comprehensive planning document which clearly describes the business developmental objective of an existing or proposed business applying for assistance in SBA's 8(a) or lending programs. The plan outlines what and how and from where the resources needed to accomplish the objective will be obtained and utilized.
• A plan identifying markets, customers, expenditures and finances required to carry out the identified business, based on projected revenues and costs over a specific period of time.
• In a nutshell, the business plan should clearly explain the what, why, when, who and how of the project. It should be a comprehensive explanation of the opportunity, the people involved, the money required to implement the plan, where it will come from and what financial results the opportunity is likely to produce.
• A detailed description of a new or existing business, including the company's product or service, marketing plan, financial statements and projections, and management principles.
• A business plan is a document that summarises the objectives of a business. It would contain detailed plans and budgets showing how these objectives are to be realised. Please see our 'Business Planning FAQ' or 'Business Planning how-to' for further information.
• a written document that expresses the corporate vision about the future of the company. To succeed, your vision must be global. To be credible, your business plan must rest upon the success to date of your private company.
• A schedule of proposed business activities and aims over the next year or other specific period. The plan is based on projected figures for sales, turnover, profit and other factors and can be used to motivate individuals within a business and to measure actual performance. Many banks want to see a business plan before they will agree to lend a business money.
• The formulation of the group's financial strategy. It has a purpose beyond the business itself, being the statement of policy to outside funding bodies, sponsors etc.
• The strategic top level plan or budget expressed in financial terms looking forward at least one year, often five years or more. The first year is frequently used for the monthly budget. The business plan should be implemented using Sales and Operations Planning.
• A Business Plan is the document you create that details your business’ history, current standing and future plans. The business plan is the first document that most investors will see about your company.
• A business plan is a planning document that summarizes the activities of a business for a given period of time. The plan communicates the business elements to lenders and others, provides the basis for managing the business, and provides a yardstick by which progress may be measured and changes evaluated.
• A comprehensive document that discloses the intent of the writer for developing a business. It is usually prepared to assist with gaining financing from a lending institution.
• Detailed description of the plans of a new or expanding business together with financial projections.
• A strategic plan prepared by company management that states the company’s objectives as well as the specific steps taken to achieve those goals
• A business plan is a statement issued by the owners or managers of a business outlining how they expect the business to develop over the years. It should cover the following areas: management, HRM, finance, production and marketing.
• an action plan that entrepreneurs draw up for the purpose of starting a business; a guide to running one's business
• A statement of income projections, costs and profits usually accompanied by the budgets and a projected balance sheet as well as a cash flow (source and application of funds) statement. It is usually stated in terms of dollars only. The business plan and the production plan, although frequently stated in different terms, should be in agreement with each other. (cf. manufacturing resource planning). ...
• A document that describes an organization's current status and plans for several years into the future. It generally projects future opportunities for the organization and maps the financial, operations, marketing and organizational strategies that will enable the organization to achieve its goals.
• Plan containing detailed information on a company’s objective
• a document, usually for a bank manager or potential investors, showing business aims, ownership, key personnel, expected sales revenue and costs etc. to demonstrate to them that it is a safe investment
• A business plan is a summary of how a business owner, manager, or entrepreneur intends to organize an entrepreneurial endeavour and implement activities necessary and sufficient for the venture to succeed. It is a written explanation of the company's business model.

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