What is the primary purpose of a business plan?

The primary purpose of a business plan is to define a business's goals, strategies, and action plans. A comprehensive business plan serves as a roadmap for the organization, detailing what the business aims to achieve and how it intends to reach those goals. It allows entrepreneurs and business leaders to articulate their vision, identify target markets, clarify operational procedures, and map out financial projections. This structured document is essential for not only guiding the internal operations of a business but also for attracting potential investors and securing funding.

While outlining roles and responsibilities, managing human resources, and developing marketing campaigns are important aspects of running a business, they are more specific functions that fall under the broader umbrella of a business plan. A business plan encapsulates all these elements but is fundamentally focused on the overall direction and strategy of the business.