What Is a Business Plan?

A business plan is a document that defines in detail a company's objectives and how it plans to achieve its goals. A business plan lays out a written roadmap for the firm from marketing, financial, and operational standpoints. Both startups and established companies use business plans.

KEY TAKEAWAYS

* A business plan is a document describing a company's core business activities and how it plans to achieve its goals.
* Startup companies use business plans to get off the ground and attract outside investors.
* A business plan can also be used as an internal guide to keep an executive team focused on and working toward short- and long-term objectives.
* Businesses may create a lengthier traditional business plan or a shorter lean startup business plan.
* Good business plans should include an executive summary and sections on products and services, marketing strategy and analysis, financial planning, and a budget.