What is a Business Plan?

Uses and Benefits of a Business Plan

A business plan is often prepared when:

• Starting a new organization, business venture, or product (service) or
• Expanding, acquiring or improving any of the above.

Several benefits are gained from preparing a business plan.

1. First, this process often leads to early identification of important problems, which can lead to finding solutions prior to launch, or lead to the realization that the plan needs to be significantly revised or even scrapped.
2. Secondly, getting the people who will be responsible for implementation to agree in advance on purpose, priorities and strategies BEFORE implementation, typically leads to better results.
3. Finally, the business plan can serve as a roadmap to compare with results as the venture proceeds from paper to reality.

For these reasons, often the planning process itself is as valuable as the business plan document itself. Finally, a business plan is often an important document to present to investors, funders, lenders and Board of Directors to get their advice and support.