What is a Business Plan?

A business plan is a document that effectively communicates the business and its potential to those that matter. It could be an investor, a bank, a joint venture partner or even a high-profile techie you want to work for your company. It will contain the background of the founding team, the business model, a brief analysis of the market and estimates of financial performance.

Such a plan should be formulated even if you’re not looking to raise funding, as the questions it brings up tends to provide a roadmap for the business. Most venture capitalists, private equity firms or banks will ask for a business plan before even giving a second meeting.