What is a Business Plan?

According to Wikipedia, a business plan is a formal statement of a set of goals, the reasons why they are believed attainable, and the plan for reaching those goals.

That’s not a bad definition of a business plan. Probably the first question you should ask yourself is “Do I need a Business Plan?” Here’s an article that will give you a quick answer.

If you need a business plan because you want to borrow money for your business, or you want to attract equity investors, or you want to get a government grant, then your business plan is a marketing document. Obviously, a business plan designed to attract government grants will have a different slant than a business plan that needs to appeal to a banker.

If the intent of the plan is to obtain financing for your business, then the business plan’s primary purpose is to convince the reader to invest money in your business. What is going to compel them to invest their money in your business? It’s the joint themes of convincing and compelling that makes your business plan a marketing document.