A business plan has two primary purposes. First, and foremost, it should be used to help run your company with a more cohesive vision. It is your roadmap. By truly analyzing your plan for marketing, sales, manufacturing, website design, etc., you greatly improve your chances for success.
The second purpose of a business plan tends to be the reason most clients request plan advice from SCORE. That is, a financial institution or other lender will not invest in your company unless you can demonstrate that you have a roadmap to success. Banks want to mitigate their risk of default and private investors, such as Angel’s, want a realistic forecast for when they will be reaping a return on their capital.