A business plan is
a summary of how a business or entrepreneur intends to organize
an entrepreneurial endeavor and implement activities necessary and
sufficient for the venture to succeed. It is a written explanation
of the company's business model for the venture in question. Business
plans are developed for ventures in both business and government.
Business plans are used internally
for management and planning and are also used to convince outsiders
such as banks or venture capitalists to invest money into a venture.
Business plans are noted for often
quickly becoming out of date. One common belief within business
circles is that the actual plan may have little value, but what
is more important is the process of planning, through which the
manager gains a greater understanding of the business and of the
options available.
Business plan is prepared for customers
for they need to know whether the product serves the purpose or
not and the utility of the product, for government because it is
necessary to know for government whether the legal economical and
subsidy concerns are met or the like. |