A business plan is a consolidation document that defines the parameters of how a business operates. It communicates strategic direction as well as specific goals, methods of achieving the goals, and the management development activities needed to reach the vision. It is a master document that serves as an umbrella for all events taking place within the company.
A business plan is the one place you turn to for completeness in your story. Since it contains the key elements of both hard and soft processes, it must be inclusive. Hard processes are those normally thought of as goals and objectives. Soft processes are the intangible but critical elements such as values, philosophy, and principles. In years past, planners avoided so-called soft or esoteric processes such as values because they could not directly connect them to the bottom line.
Now smart executives work with values, philosophies, and principles early in their planning activities. They know the importance of integrating both the soft and hard processes. These executives see the relationship between goal failure and gaps in the operational values of their companies. An important function of a business plan is to set the direction of the company. Setting direction means more than setting goals. Setting direction means that you will set your business direction in the right line, so later the business can last for a long time and smoothly. While, when you set your goal, it means that you are planning for your business goal. In other word, you set your purposes in this business. The important thing is that you should be able in setting your direction, because you cannot gain the business goals if your direction is not in line.