A business plan is a formal written document that outlines a companys objectives and how it plans to achieve them. It is a decision-making tool that can be used to attract lenders and investors, as well as to keep an executive team focused on and working towards short- and long-term objectives. A business plan can be used as an internal guide to manage a company, and it can also be used to convince people that working with or investing in the company is a smart choice.

The content and format of a business plan are determined by the goals and audience. For example, a business plan for a non-profit might discuss the fit between the business plan and the organizations mission, while a business plan for a bank loan will build a convincing case for the organizations ability to repay the loan.

Preparing a business plan draws on a wide range of knowledge from many different business disciplines, including finance, human resource management, intellectual property management, supply chain management, operations management, and marketing, among others. It can be helpful to view the business plan as a collection of sub-plans, one for each of the main business disciplines.

There are two common types of business plans: traditional and lean startup. Traditional business plans are more common, use a standard structure, and encourage you to go into detail in each section. They tend to require more work and are often used for external purposes, such as seeking funding or partnerships. Lean startup business plans, on the other hand, are shorter and more focused on the essentials. They are often used for internal purposes, such as keeping an executive team focused on short-term objectives.

In summary, a business plan is a documented strategy for a business that highlights its goals and its plans for achieving them. It can be used for internal purposes, such as managing a company, or external purposes, such as attracting lenders and investors. The content and format of a business plan are determined by the goals and audience, and there are two common types of business plans: traditional and lean startup.