What is the main purpose of a business plan?

The primary purpose of a business plan is to detail goals, strategies, and financial projections. A business plan serves as a blueprint for the organization, helping to articulate the vision and objectives of the business. It outlines how the company intends to achieve its goals, including marketing strategies, operational plans, and financial forecasts.

This document is essential not only for guiding the management team but also for attracting investors or securing loans since it provides potential stakeholders with a clear understanding of how the business plans to operate and succeed. Financial projections within the plan help to demonstrate the viability of the business and how it plans to sustain itself financially over time.

While aspects such as team structure may be included in a business plan to show the management capabilities of the business, building a comprehensive training manual or using the plan merely as an advertisement do not encapsulate the primary intention of a business plan. Instead, they serve other specific functions that are ancillary to the core objectives of a well-structured business plan.