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How to Develop Business Goals & Objectives What Effects Do Stakeholders Have on Your Business? What Is the Overall Purpose of a Business Plan?

by Linda Ray; Updated April 18, 2018 
A business plan serves as your blueprint for how you will operate your business. While you need to have a business plan to seek investors or get a loan for your company, the plan is actually for your benefit. It provides a step-by-step guide as you start a new business or grow your current company, and it directs every decision you make going forward.


Writing down your business plan helps you clarify your thoughts and organize the steps you need to take to be successful in your business. There are a number of pieces that all have to come together to make your business profitable. A business plan ensures that you won’t skip any important steps that could derail your efforts down the line. Be specific (even if the plan is for your eyes only); Use measurable milestones, accountable responsibilities and trackable performance expectations, for starters. When your plan is clearly spelled out in writing, it helps you see the big picture and identify potential problems before you make blunders.


After your business plan is developed, referring to it periodically helps you maintain a long-range view as you make daily decisions. The plan makes it easier to follow each business development step in order so you don’t miss any important elements along the way. A well-written plan provides you with a starting point and outlines a timetable that drives your activities, keeping you grounded, focused on your target market, strategically aligned with your main business tactics and on track as you progress.

Clarify Goals

A business plan is an effective means of defining your goals and the steps needed to reach them. It spells out your purpose, vision and means of operation. It also serves as your company’s resume, explaining your objectives to investors, partners, employees and vendors. A good business plan clearly states the amount of capital you need to make the company work and where the investment is coming from. It clarifies the means by which you will pay back borrowed money, your sales forecast, spending budget, cash flow and how you will invest profits.

Prepare for the Future

By outlining your goals and how you will reach them, your business plan helps you prepare for the future. Market research in the business plan should include projections based on consumer needs and your ability to fulfill those needs. A well-developed business plan also documents actions the company will follow in case the projections turn out to be too optimistic. Scenarios should be developed to identify potential obstacles, including possible changes in the market, so that the company will be prepared to make operational decisions that remain in line with the overall business strategy.



