The purpose of a business plan is to:
The most common reason for writing a business plan is to raise funding for a new enterprise. Without a good business plan, you will find it difficult to induce lenders or investors to fund you the money you need to start up or expand your business, or capitalize on an opportunity.
But it's more than just a way of impressing would-be investors. An effective business plan also ensures that everyone on your business team knows the direction of the business and is committed to the same goals and objectives. It defines the mission statement and corporate culture of the organization, and acts as a blueprint for present activities and future development.
Your marketing plan works hand in hand with the business plan by setting out the strategies you will employ to gain market share and accomplish your objectives. It identifies the business' strengths, weaknesses, challenges, competitors and target markets, and determines the potential demand for your products and services.