What is the primary function of a business plan?

A business plan serves many purposes, but its primary function is to outline a company's goals and strategies. This document acts as a roadmap for the business, detailing what the organization aims to achieve and how it plans to accomplish these objectives. It provides a clear direction for the company and assists in communicating the vision to various stakeholders, such as investors, employees, and partners.

While financial forecasts are essential components of a business plan, they serve to support the overarching goals and strategies rather than being the main focus. Legal documentation related to business registration is also not the primary purpose of a business plan; that function is better fulfilled by specific legal forms and filings. Furthermore, listing employees and their roles, while important for operational clarity, is not a central purpose of the business plan itself; it is more of an internal operational document. Overall, the emphasis on goals and strategies encapsulates the essence of what a business plan is intended to convey.