What is a business plan? Why should a business plan be updated? Explain.

A business plan is a comprehensive document that outlines the objectives, strategies, market analysis, financial forecasts, and operational details of a business. It serves as a roadmap for the business with details on how it intends to operate, grow, and achieve its goals $($Galai et al$.,2016).$ The plan includes components such as an executive summary, a company description, a market analysis, an organization and management structure, the service or product line, marketing and sales strategies, funding request, as well as the financial projections.

Updating a business plan is crucial for several reasons which include ensuring the plan remains aligned with the changing business environment, these include market trends, customer needs, and the competitive landscapes. As these factors evolve, a business needs to adjust its strategies to stay relevant and competitive, also, updating the plan allows for the incorporation of new opportunities and technologies that can enhance business operations and market positioning $($Fern$$ndez$-$Guerrero et al$.,2012).$ Third, it helps in tracking progress against goals and objectives which enables adjustments to strategies for improved performance and keeping in mind that an updated business plan is essential for communicating with stakeholders, such as investors, lenders, and employees, about the current state and future direction of the business $($Galai et al$.,2016).$ Overall, it provides a basis for making informed decisions, securing financing, and attracting investments with regular updates that ensure the business is proactive rather than reactive, positioning it for growth and success especially in a dynamic business environment.