What are the three 3 purposes of a business plan?
John Johnson
Updated on March 02, 2026
The 3 most important purposes of a business plan are 1) to create an effective strategy for growth, 2) to determine your future financial needs, and 3) to attract investors (including angel investors and VC funding) and lenders.
What a business plan consists of?
Your business plan should provide bios of key personnel, and it should include a marketing plan laying out how you intend to take your business to the next level. The bulk of your business plan will likely consist of financial documents such as income statements, balance sheets and cash flow projections.
What should be included in a business plan?
Your business plan should provide bios of key personnel, and it should include a marketing plan laying out how you intend to take your business to the next level. The bulk of your business plan will likely consist of financial documents such as income statements, balance sheets and cash flow projections.
What should be included in an external business plan?
For external plans, the company overview is a brief summary of the company’s legal structure, ownership, history, and location. It’s common to include a mission statement in the company overview, but that’s certainly not a critical component of all business plans.
Why do you need a business plan to start a business?
It provides investors, lenders and potential partners with an understanding of your company’s structure and goals. If you want to gain the financial autonomy to run a business or become an entrepreneur, a financial advisorcould help align your finances to meet your business needs.
How many pages are in a business plan?
Business plans range from 20 to 50 pages in length, but, typically, they all contain the same sections. You’ll find detailed overviews of what to include within each section by looking at sample business plans and going to online sources.
