A business plan is a formal written document that explains what a business is and how it will be operated. The business plan also expresses the vision of the enterprise and describes the strategy and operations of the enterprise.
A business plan is like a road map which tells the entrepreneur how to start and operate a business. It is an important document to help you make strategic decisions.

Scope of a Business Plan
What exactly should the business plan contain? A business plan should:

• Show exactly what the business offers in terms of products or services to customers.
• Show how the business will be managed i.e. show the organization structure.
• Describe the goals of the business, basically what the entrepreneur hopes to achieve with the business.
• Describe the market, focusing mainly on the existing competition.
• Show sales estimates.
• Estimate costs, revenue and profits.
• Identify customer needs.
• Provide information on what makes the business different from others.