What is the purpose of a business plan?

The purpose of a business plan is to outline a business's goals, strategies, and financial projections. A well-structured business plan serves as a roadmap for the organization, detailing what the business intends to achieve and how it plans to get there. It encompasses various aspects including marketing strategies, operational plans, funding requirements, target audience, and financial forecasts. This comprehensive overview is essential for both guiding the business internally and for attracting investors or securing loans, as it helps stakeholders understand the business's vision and its potential for profitability.

While other options may touch on different aspects related to a business, they do not capture the broader scope and strategic importance of a business plan. For instance, summarizing daily transactions, determining employee salaries, or tracking customer feedback are all important functions within a business, but they do not encapsulate the strategic planning and projections that a business plan provides.