A business plan is a summary of how a business owner, manager, or entrepreneur intends to organize an entrepreneurial endeavor and implement activities necessary and sufficient for the venture to succeed.
It is a written explanation of the company's business model. Business plans are used internally for management and planning and are also used to convince outsiders such as banks or venture capitalists to invest money into a venture. Business plans are noted for often quickly becoming out of date.
One common belief within business circles is that the actual plan may have little value, but what is more important is the process of planning, through which the manager gains a greater understanding of the business and of the options available.