What is the primary purpose of a business plan?

The primary purpose of a business plan is to outline a company’s goals and strategies. A business plan serves as a roadmap for the business, detailing what the company aims to achieve and how it plans to get there. This includes the organization’s mission, objectives, market analysis, target audience, financial projections, and operational strategies. By clearly articulating this information, the business plan not only serves to guide the company's direction over time but also becomes a vital tool for securing funding from investors or lenders who want to understand the viability and financial outlook of the business.

While training employees, reducing operational costs, and establishing a product line may be important aspects of overall business operations, they do not capture the comprehensive intent and function of a business plan. The focus is predominantly on strategic planning and goal-setting, which is essential for the sustainable growth and success of the organization.