Starting a business plan is a detailed process that is both revealing and educational. In both the short- and the long-run, arranging your business plan into a compelling form not only provides insight and focus to you, but becomes a valuable tool when dealing with business partners and developing relationships that will become important to you.
This situation is complicated by the fact that many venture capitalists will refuse to sign an NDA before looking at a business plan, lest it put them in the untenable position of looking at two independently developed look-alike business plans, both claiming originality.
If you have an accurate plan which includes all of the 5 point above, then you will be able to find out how profitable the business plan really is. This will also give you an idea of how much (if at all) you will need to borrow from the bank to realise your new business.
Often times they determine how your business is going to deal with competitors, your marketing strategy, finances, financial plan, keys to success, competitive market analysis, defining and exploring your niche possibilities, sales forecast and so much more (I will link you some good examples in a few minutes).
Business planning will assist you in understanding how to effectively market your business, how to understand and plan for financial stability both now and in the future, how to carry out your daily operations with a necessary level of routine, and so forth.