What is the purpose of a business plan?
A business plan serves the following purposes
– Business plan decides the specific strategies and tactics that need to be followed to achieve the business goal. It is also a reference tool while executing the business plan.
– Lays out the direction for the entrepreneur to procure all the resources (money, material, manpower, machines etc) required to start the business
– Lays out the direction for directing and organizing the business execution. It acts as a reference point about the business direction to all the partners/employees/other stake holders, in future.
– Lays out the milestones to measure the progress of the business at specific intervals of time, there by taking appropriate measures to set the business in the right direction. Thus any deviations from the business goal are well taken care of.
– Serves as a communication tool to all the stakeholders (Partners, Investors, lenders, suppliers etc) about the implementation of the business and understand the business direction, goals etc.
Additional content on this topic can be found at
