When one prepares to take action towards a new business idea, planning is inevitable. Vision of the desired future is part of the plan, otherwise, there will be no motivation to act upon the idea. This vision of what the business might look like within the owner’s mind, evolves with time passing by and with information related to the idea accumulating.
This process is natural, but it becomes more complex when someone else, such as investors or potential customers, try to understand what the owner actually thinks and how he envisions her/his business. That is when the business plan comes in hand. The business plan is a written document compiled with the owner’s vision of his/her business and the various strings attached to it, background for the business idea, what problem plans to solve, how the solution looks like, how to achieve that solution or what costs and benefits this solution involves, financial, social or of other nature.