Business plans are analogous to that of GPS systems in an automobile. GPS systems assist travelers from getting lost by tracking and monitoring the route to their destination. A business plan can be used as a tool to identify the current state of the business and in which direction the business intends to grow.
A Business plan communicates the vision of the business owners by outlining the business processes and provides a roadmap to the desired future state.
A Business plan validates the alignment of product or services offered by the organization and market demands.
The level of research and grounding involved in creating a business plan helps stakeholders to gain a deeper understanding of the nature of the industry with respect to competition, customer demand, and various internal and external forces which influence the business operations and helps identify the opportunities offered by the market.
A Business plan helps organizations to devise appropriate strategies and determine various implementation steps that are indispensable to attain the envisioned goals and objectives.
A Business plan helps in optimized allocation of resources by prioritizing the requirements in terms of cost, time, effort, business growth, financial status etc.
A Business plan helps manage cash flow by effectively determining the various revenue and operating expenses involved in-terms of purchasing assets or repaying debt etc.
A business proposal and can better be evolved through the business plan and presented to potential investors for fund-raising actions.