Anyone who wants to start a business or make improvements on an existing business needs a business plan. Anyone who is seeking funding of investors needs a business plan. A well written, researched business plan is meant to convince others that you are creating a viable business that will produce a profit.
A business plan is a way of testing out your ideas before committing to them financially. The plan explains every aspect of your business from the products and services that you are offering, a financial breakdown of how you will spend money and how you will earn it, to an explanation of how the business runs and the chain of command. The business plan allows for a full critical analysis of all the positive and negative aspects to your ideas.
A business plan can be used at any stage of your business to test new ideas, plan future investments or begin new ventures. By outlining the future goals for your business you can create on-target objectives that allow you to stay on track.