What is the purpose of a business plan?

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A business plan has two primary purposes. First, and foremost, it should be used to help run your company with a more cohesive vision.  It is your roadmap. By truly analyzing your plan for marketing, sales, manufacturing, website design, etc., you greatly improve your chances for success.
The second purpose of a business plan tends to be the reason most clients request plan advice from SCORE.  That is, a financial institution or other lender will not invest in your company unless you can demonstrate that you have a roadmap to success. Banks want to mitigate their risk of default and private investors, such as Angel’s, want a realistic forecast for when they will be reaping a return on their capital.