That is, a financial institution or other lender will not invest in your company unless you can demonstrate that you have a roadmap to success.
For example, the market analysis section of a business plan provides a thorough description of industry trends as related to the business.
A business plan specifies precisely which products and services are sold, who potential customers are, and which companies are considered competition.
Since a business plan requires a huge time commitment, it's understandable why you may have heard it described as “detailed,” “expansive” and even “exhausting.” Business plans can be all of these things, but there probably isn't a small-business owner alive who wouldn't add another word to the list once the exercise is complete: “This is no lead-in to a pep talk, but if it serves as one, it would be OK with the U. Small-business advocates like to say that a business plan is a must-have document for both potential business partners and investors.
But after contemplating the purpose, importance and actual contents of a business plan, you might agree that it's most valuable to the small-business owner who writes it.