define business plan

You may hear everyone telling you about the value of making a business plan, from the lender you hope to do business with all the way down to the guy that prints your business cards. In a vague sense, most people have some broad sense of what a business plan, but what is it really? Is a business plan a full blueprint of every detail that goes into operating a business or is it more of a checklist than anything else?

Define Business Plan:

By definition, a business plan is a formal statement of a defined agenda of business goals, why it is believed they can be achieved, and as importantly, how they will be achieved. It is, after all,business plan is a formal statement achieving those goals that generate capital and allows for loans to be paid and new projects to be undertaken. As you can see, a business plan is in actuality a little bit of everything all rolled into one – when they are prepared correctly.

Business plans are not just for the entrepreneur looking to launch a new business hoping to attract some venture capital, they are a vital part of every well-run business from Joe’s Corner Barbershop to Microsoft. It’s true that even massive multi-billion dollar corporations use business plans. A business plan lays the groundwork out in plan terms for expansions, profit projections, potential changes in clientele demographics, and as a bonus, a nice report card of sorts for investors to peruse.  Big or small, a business plan is a perfect way to see the past and make the future reality.

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