What are the purposes of a business plan?

A business plan serves to satisfy several necessities including:

1. Provides the company with direction and guidance for achieving its, i.e., 3 or 5 year goals and/or objectives, and

2. Provides financial projections and goals enabling management to evaluate results vs. projections, and

3. Provides a source document used by financial institutions in helping them decide on extending credit and/or loaning capital to the business, and

4. Provides a foundation for the full disclosure information required by the Securities Act of 1933, as amended, when raising capital.