DECA+ Business Management and Administration Practice Exam 2025 - Free Business Management Practice Questions and Study Guide

The main purpose of a business plan is to outline the business's strategy and financial projections, which provides a roadmap for the company’s future growth and sustainability. A well-structured business plan serves several critical functions: it helps entrepreneurs clarify their ideas and goals, sets specific targets and timelines, and outlines strategies for achieving those objectives.

Financial projections included in the plan help assess potential revenue, funding needs, and profitability, making a compelling case to stakeholders about the viability of the business. Additionally, a business plan is essential for securing financing, as it provides potential investors or lenders with detailed insights into how the business will operate and generate profit.

While attracting investment from venture capitalists is a beneficial outcome of a solid business plan, it is not the primary purpose. Assessing employee performance and defining corporate social responsibility are also important aspects of running a business, but they do not pertain to the business plan's core objective of strategic and financial outline. Thus, the focus remains on the overarching strategy and projections that drive the business forward.