An entrepreneur faces three broad tasks. He or she must finance the business, produce the product or service, and bring it to market. Clearly, there are other tasks, such as finding suppliers and setting up an accounting system, but financing, producing, and marketing the product are the big ones.
These tasks are also linked in chicken-and-egg fashion. How do you market a product if you haven’t produced it? How do you produce a product if you don’t have much money? How do you raise money if you don’t have a proven product?
The business plan answers these questions. A business plan describes the product or service, its market and its production and distribution requirements, the background and qualifications of the entrepreneurs, ...