A business plan is a management tool.  It is an ever-evolving and growing document, just like a sustainable small business is always evolving and growing. A business plan is a requirement for attracting talent, (partners, independent contractors and employees) professional-service providers, and financiers (banks, credit unions, angels venture capitalists, public, etc.). 

 

A business plan provides a clear discussion of who is involved in the small business and why. The business plan fully articulates the problem to be solved, the solution your business provides, to whom it is provided, at what price.  Your business plan reveals the risks, the rewards, what can go wrong and how management will respond.  It is a tool to benchmark progress and make necessary adjustments.  You will use your business plan as a means for priority-setting and for better daily decision-making.  Ultimately, the business plan is one of the most important management tools you need to start, grow and sustain a solo,-home-based, business, a micro-enterprise, a small business or an entrepreneurial firm.