What is the primary purpose of a business plan?

The primary purpose of a business plan lies in its ability to outline a business's goals, strategies, and projected financial performance. This document serves as a roadmap for the organization, guiding its actions and decisions over a specific period. By clearly stating the business's objectives, the plan helps streamline efforts towards achieving them and provides a benchmark for evaluating progress.

Additionally, outlining strategies allows the business to define how it intends to achieve its goals, whether that be through specific marketing approaches, operational efficiencies, or financial management techniques. Projecting financial performance is crucial as it helps in assessing the viability of the business concept, attracting investors, and securing financing.

While establishing employee roles, determining product pricing, and creating marketing materials are relevant aspects of running a business, these elements are typically addressed within the broader context of the business plan, rather than being the primary purpose of the document itself.