Business planning optimizes success by requiring you to analyze the potential successes of and obstacles to your business goals. A business plan is typically used at the start-up of a business and to apply for loans, but it is also very useful when running a business to organize for growth and development. As the Small Business Administration notes, business plans should be a “work in progress.”
You will use your business plan when you apply for a loan at a bank or approach a potential investor. You may also circulate it to other interested parties, but you should control who sees the business plan and update the plan as needed.