A plan is a roadmap from where we are to where we want to go. Planning is the thought process used to create that roadmap. In the business world, we call the roadmap a business plan and the process a business plan.
Business planning is about establishing objectives and deciding in advance what must be done to achieve these objectives. It is a very important management function.
In the business world, the primary tool for planning is the business plan. There are two types of business plan . A formal business plan is used to get a loan or grant from a financial institution or government agency. There is also an informal business plan that is used to manage your business.
When you start a business from scratch, a considerable amount of planning is required. You must go from an idea to having something in place that produces results. That will not happen accidentally.
If you have time, watch the following video from the City of Toronto, Starting Your Business 101 collection.