They also act as a means to get people to work with and invest in the business.
Although there are no right or wrong business plans, they can fall into two different categories—traditional or lean startup.
Business plans help companies identify their objectives and remain on track.
They can help companies start and manage themselves, and to help grow after they're up and running.
Financial statements, balance sheets, and other financial information may be included for already-established businesses.
New businesses may include targets for the first few years of the business and any potential investors.Sometimes, a new business plan is prepared for an established business that is moving in a new direction.A business plan is a fundamental tool any startup business needs to have in place prior to beginning its operations.But they all tend to have the same elements, including an executive summary of the business and a detailed description of the business, its services and/or products.It also states how the business intends to achieve its goals.According to the Small Business Administration, the traditional business plan is the most common.They are standard, with much more detail in each section.Although they're especially useful for new companies, every company should have a business plan.Ideally, a company would revisit the plan periodically to see if goals have been met or have changed and evolved.These business plans are short—as short as one page—and have very little detail.If a company uses this kind of plan, they should expect to provide more detail if an investor or lender requests it.