What is the purpose of a business plan for entrepreneurs?

The purpose of a business plan for entrepreneurs is to outline business objectives and forecasts. A well-structured business plan serves as a roadmap for the business, detailing the goals the entrepreneur aims to achieve and the strategies to reach those goals. It includes critical elements such as market analysis, financial planning, operational structure, and marketing strategies, which help the entrepreneur understand their business's viability and direction.

By outlining objectives, the business plan helps entrepreneurs to stay focused on their mission and gauge their progress over time. Additionally, it plays a crucial role in attracting investors or securing loans, as it provides a comprehensive overview of how the business intends to operate and succeed in its market.

While aspects like managing competition, obtaining government funding, or limiting growth are related to running a business, they do not encapsulate the primary function of a business plan. Instead, the focus is on establishing clear goals and forecasts that guide the entrepreneur's decision-making process.