A business plan is one of the most useful management tools the small business owner can use. It provides direction for setup through the tough first years until the business achieves profitability. A business plan is a detailed written report that sets out the objectives, operations, and financial aspects of a proposed business venture. The business plan also provides information that potential lenders of finance will require for the business owner to secure a business loan. It shows that the business is organized and well-managed, not a risky venture.