What is the main function of a business plan?

A business plan primarily serves as a comprehensive document that outlines strategies and operational plans for an organization. This foundational document provides a roadmap for the business, detailing how it intends to achieve its goals, allocate resources, and manage its operations effectively. It not only articulates the vision and mission of the company but also sets specific objectives, identifies target markets, and describes the products or services offered.

By documenting these strategies and operational plans, a business plan can guide decision-making, attract potential investors, and help monitor the business's progress over time. It serves as a reference point to ensure that all stakeholders are aligned with the company's direction and enables effective communication among team members regarding the company’s strategies.

Other options, although important aspects of business operations, do not capture the primary purpose of a business plan as effectively as outlining strategies and operational plans does. For instance, corporate governance refers to the mechanisms and processes that control and direct an organization, which is not the main focus of a business plan. Similarly, while employee training programs and pricing strategies are important components of business operations, they are typically derived from or included within the broader context of the strategies and operational plans detailed in a business plan.