In capturing the planned business venture, the business plan has two objectives:
- The first is as a detailed plan that ensures that the investor has captured enough detail to ensure that best the decisions are made to mitigate risk and to ensure success (i.e. generate profit). Here the detail is important is it highlights the risks, the actions that will mitigate the risk and will contribute to success (generate a profit).
- The second, is to serve as a succinct communication document in which the overall plan can be shared with others, such as bank managers, partners, business partners, suppliers and other stakeholders, to ensure their support and commitment. In this instance, it is the core essence of the business activities that need to be captured in a much shorter, yet still convincing document that others can have a similar vision as the entrepreneur.
To prepare this shorter version, the full document first has to be written.