A business plan provides entrepreneurs with a detailed map to help their business grow, and to attract investors to fund business operations and expenses. It is a professional document that must contain specific details about the business's goals, operations and revenue strategy.
Typically, a business plan is created with the following money-holders in mind: Angels and Venture Capitalists. Angel investors are wealthy individuals who become personally involved in fledgling ventures, lending their expertise, experience, and money. Often, the angel is someone who has a personal connection with the entrepreneur, but angels can also be outsiders on the lookout for a winning business model.
Venture capitalists, or VCs are individuals organized into large firms that will give you money to fund your business if they think that you'll be profitable. In exchange for their giving you money, you have to promise them a percentage (that is, share) of your company. VC firms often specialize in a certain industry so that the various companies in their portfolio become mutually supportive. Their funds range from a few paltry mil to billions of dollars invested in a variety of globe-spanning ventures.
