Question

5. What are the 3 main purposes of a Business Plan? Briefly explain each.

Answer 1

The company's business plan is a formal written document that tells about the goals and implementation of the business's idea. The three primary purposes of a business plan are -

1. To get organized - the first purpose of the business plan is to get organized about achieving the business's goal without missing any critical step. It helps in achieving the goal and tells about exactly when the company can make that.

2. to clarify and focus on the goal - business plans define why the business exists and its purpose and refine them. It also states that where the company will get to.

3. Prepare for the future - another purpose of a business plan is to prepare about the future by outlining goals it can help in making for the future.