What is one reason why businesses create a business plan?

Creating a business plan serves multiple purposes, one of the most significant being to attract investors and guide operations. A well-structured business plan outlines the company's vision, mission, and long-term goals, along with detailed plans for marketing, sales, financial projections, and operational strategies. This comprehensive document not only helps communicate the potential value of the business to prospective investors or stakeholders but also acts as a roadmap for management to follow as they execute their business strategy.

By detailing how the business will operate and grow, the plan instills confidence in investors regarding the soundness of the investment, illustrating a clear understanding of the market and the company's competitive advantage. Additionally, it helps ensure that all team members are on the same page regarding the company's objectives and strategies, aligning daily operations with long-term goals. Thus, its primary roles are to secure funding and provide strategic guidance.