The business planning process is the compilation of cumulative steps that are taken to prepare for a business. The process requires the entrepreneur to examine individually and collectively the components (management, marketing, and financial strategy, etc) of the business that will contribute to its functionality and ultimately, its success.
The business plan is essentially a blueprint of the planning process and is documentary evidence that planning for the business venture has occurred. As is repeatedly stressed, this document is not only a guide for the entrepreneur, it is evidence of the planning for potential investors and other stakeholders. Stakeholders always want to know that the due careful consideration has been given to the venture which is seeking money. No investor wants to provide money to an entrepreneur who is unsure of what they plan to use it for.
How They Work Together
The planning process being accounted for makes it much easier to create the document reflecting same (business plan). It also allows for any individual who is unfamiliar with the business to read it and upon conclusion have a sense of exactly what the entrepreneur’s intentions are.
While business markets can be unpredictable, calculated risk is always preferable when monetary contributions are involved. In conclusion, the business plan is stressed as it is evidence of business planning.