In order to provide a comprehensive answer to the question of what a business plan is, it is necessary to look at its role from different angles.
A business plan is a written document, which defines the goals, activities and necessary resources, and which entrepreneurs or managers in companies usually create for the purpose of starting a new business, expanding existing business activities or obtaining a bank loan. Essentially, a business plan enables listing of business priorities, as well as the consideration of internal problems and the use of market opportunities.
As an internal document, the business plan primarily serves the company’s management to analyze the current situation in which the company is, defines the steps to be taken to improve the situation, as well as to monitor the implementation of planned business activities.
As an external document, a business plan serves banks or potential investors to decide whether to invest their money in a company or not.
In order to better understand what a business plan is and what it is for, we will consider the definitions, types and patterns of the business plan in a little more detail below.
How to make a business plan: the 10 questions method, see in the video below.