A business plan is a document that summarizes the companies objectives, the actions and initiatives it intends to take to achieve those objectives, and the financial outcomes it expects as a result of its tactics. It provides an important narrative to lenders and shareholders by businesses to gain their commitment for a loan or investment. It is also used to communicate the company’s mission and vision to its employees, customers and suppliers to gain their support and participation in the company’s plan. This document organizes management towards a goal and it is often used to provide information to prospective financial institutions to make decisions on a business loan.
