business plan

Meaning

A business plan is a formal document that describes a company's goals, strategies, and financial forecasts. It explains how the business will operate and make money. Entrepreneurs usually write one to attract investors or guide their company's growth.

Examples

• We need to write a solid business plan before we ask the bank for a loan.

  We need to write a solid business plan before we ask the bank for a loan.

• Her business plan includes detailed marketing strategies and financial projections.

  Her business plan includes detailed marketing strategies and financial projections.

• The investors rejected the proposal because the business plan was too vague.

  The investors rejected the proposal because the business plan was too vague.

• He spent three months researching the market to prepare his business plan.

  He spent three months researching the market to prepare his business plan.

• Does your business plan explain how you will compete with larger companies?

  Does your business plan explain how you will compete with larger companies?

Common Mistakes

• ✗ We are making a plan of business for our new startup.

  ✓ We are writing a business plan for our new startup.

  'Plan of business' is a literal translation from other languages. The correct English compound noun is 'business plan.' Additionally, we usually 'write,' 'create,' or 'develop' a plan rather than 'make' it.

• ✗ The bank asked us for our business planning.

  ✓ The bank asked us for our business plan.

  'Business planning' refers to the ongoing activity or process of planning. The physical or digital document itself is called a 'business plan.'

Related Expressions

Practice

• Before starting the company, they drafted a detailed ___.

  💡 A document outlining goals and financial strategies.

  Show answer

  business plan

• You need a strong ___ to convince investors to fund your project.

  💡 The written proposal for a new business.

  Show answer

  business plan