What is the primary purpose of a business plan?

The primary purpose of a business plan is to outline a company's goals and the strategy to achieve them. A business plan serves as a roadmap for an organization, detailing where the business wants to go and how it plans to reach its objectives. This includes defining the mission and vision, identifying target markets, analyzing competition, and setting financial projections.

By articulating specific goals and detailing the steps to accomplish those goals, a business plan helps align the efforts of all stakeholders within the company, ensuring that everyone understands the direction and purpose of the business. It also serves to communicate the company’s vision to potential investors or partners, providing them with insight into the business's potential for growth and profitability.