A business plan is a comprehensive document outlining a business’s goals, strategies, and operational specifics. It covers aspects like mission, target market, products or services, marketing, organizational structure, and financial projections. Business plans are vital for strategic planning, securing funding, and guiding operations.

Though business plans are closely related to business models, they are fundamentally different. A business model is a broader framework outlining how a company or entrepreneur creates and provides value. A business plan, on the other hand, is more detailed and operational. 

Business plans help:

• Guide daily decision-making and resource allocation
• Assist in better understanding the market, target audience, and competition
• Produce precise financial projections to effectively create a budget
• Measure success precisely through the establishment of KPIs and other similar milestones
• Convince investors to see the viability and potential returns of the business in question
• Communicate value proposition and strategy to stakeholders