Business plans are like road maps:

it’s possible to travel without one, but that will only increase the odds of getting lost along the way.
 
Every business starts with an idea. Once the idea is crystallized in your mind, it is a right time to start developing a comprehensive business plan.

A business plan is a formal document that outlines how you will achieve your business objectives and includes information about your product, marketing strategies, competitors, finances, etc.

Business plans typically include detailed information that can help improve your business’s chances of success, like:

• A market analysis: gathering information about factors and conditions that affect your industry
• Competitive analysis: evaluating the strengths and weaknesses of your competitors
• Customer segmentation: divide your customers into different groups based on specific characteristics to improve your marketing
• Marketing: using your research to advertise your business
• Logistics and operations plans: planning and executing the most efficient production process
• Cash flow projection: being prepared for how much money is going into and out of your business
• An overall path to long-term growth
 
The purposes of business planning can be very diverse:

1. Immigration: USCIS require business plan as a part of some immigrant and non-immigrant petitions – like E2, O1, L1, EB2-NIW, EB1A, EB1C, EB5, etc.

2. Proof of viability of your business: Many businesses are created out of passion, and while passion can be a great motivator, it’s not a great proof point. Business plans can help you confirm that your grand idea makes sound business sense.

3. Starting point for setting new objectives and benchmarks: it is always a good idea to look at your business from a different perspective. Having a business plan can help you to realize your new opportunities and choose the right direction for further development.

4. Securing financing: business plans are the most effective ways of proving that your business is viable in the long run. Business plans are typically a requirement for anyone seeking outside financing – either bank loans or venture capitalists’ investments.

5. Assessing business environment: while you might have a strong handle on everything happening under your own roof, it’s equally important to understand the market terrain as well. Business plan will contribute to the better understanding of your competitors, illuminating consumer trends and preferences, potential disruptions and other insights that aren’t always plainly visible.

6. Guidance for the services providers: Small businesses typically employ contractors, freelancers, and other professionals to help them with tasks like accounting, marketing, legal assistance, and as consultants. Having a business plan in place allows you to easily share relevant sections with those you rely on to support the organization, while ensuring everyone is on the same page.