A business plan is like a road map, it shows one the route to take, the pitfalls to avoid in order to reach his destination, For instance, if one decides to travel by road from one place to another, he would first need a road map that shows him the route to take. He will need to determine the distance and how much gas his car will need to take him to his destination. Moreover, he will need to calculate how much the journey will cost him, if he intends to raise money, if he's borrowing, how he intends to refund the money. Putting all this into consideration, he now has a traveling plan that will take him to his destination. In the same vein, that's what a business plan provides one with, the strategies, the route, and a road map to success.
In addition to a performance tool, perfect business plan should contain other necessary tools in its system, which really make it a perfect plan. It must have a human resource tool, a marketing and strategy tool, financial tool, communication tool, and most importantly, an investor's guide. A well-defined business plan attracts others to be part of the vision. It has to have a well-defined goal and objective that will set the stage to bring others into the business. It should inspire teamwork and creativity among its people and ensures everyone understands the goals and objectives.