What is the primary purpose of a business plan?

The primary purpose of a business plan is to outline goals, strategies, and financial forecasts for a business. A well-structured business plan serves as a roadmap for the organization, helping to define what the business aims to achieve and how it plans to get there. It includes detailed information about the target market, the competitive landscape, operational strategies, and financial projections, which are essential for guiding decision-making and securing financing.

While aspects like pricing strategies, competitor analysis, and the history of the business can be components of a business plan, they serve more as supporting information rather than the main intent. The overarching need for a business plan is to provide a comprehensive overview that aligns all parts of the business towards achieving its objectives.