Put simply, a business plan sets out your business's plans, and shows how those plans will be achieved. It will include a concise description of your company, the products and services you sell, your customers, competitors, and financial forecasts. You might think that you only need a business plan if you need to raise external financing. It is true that a business plan is essential if you need to borrow money from a bank, or raise money from investors, but that is not the only reason for writing a winning business plan. Writing a business plan is not as boring or troublesome as you might think.
Most business owners find that it is an excellent exercise, and extremely helpful.
Too often people get caught up in the day to day running of their businesses, and do not spend enough time considering their overall plan. Preparing a business plan can be a very enjoyable break from the sometimes mundane operational duties. You will find that it is really not that difficult. There are a number of good books and software packages available to help you write a winning business plan and a comprehensive WISE Business Plan format can be found on this site. Use language that a non-expert will understand.