A business plan is a formal document that outlines the goals of a business and the strategies to achieve them. It typically includes sections on market analysis, financial projections, and operational plans. This document serves as a roadmap for entrepreneurs and helps them secure funding from investors or lenders. Creating a business plan involves researching the target market, defining the business model, and detailing the products or services offered. It is essential for both new startups and established companies looking to expand, as it provides clarity and direction for future growth and decision-making.