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Like anything else in business, a business plan should be judged good or bad not in a vacuum but in its business context with its specific business objective. Most of the online discussion about business plans is focused on business plans related to seeking investment, and I`m going to make the assumption in this answer that you are asking about those.

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Whether you are in the beginning stages of starting your own business or planning on taking it to the next level, you will need a clear and informative business plan. `What is a business plan?` you may ask. In short, it is a comprehensive guide wherein answers to the questions and problems you will face in each stage of growth are laid out in detail.

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By having a written business plan that you`re regularly reviewing, you can make confident decisions. You`ll have all the information necessary to know when you can hire new employees, launch a new product line or make a major purchase. At the same time, you can also plan ahead in case a decision doesn`t work out as expected, minimizing your potential risk.

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The pitch is a summary of the plan, organized according to highlights for investors, ideally a way to present your business in a structured way. The business plan is the bones of the pitch, like the screenplay, setting strategy, tactics, milestones, market, and essential numbers.

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The investment decision is about the content – the team, the market, the differentiators, the scalability, traction so far, validators, growth potential – not the presentation or formatting of the plan.

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The executive summary of your business plan introduces your company, explains what you do, and lays out what you`re looking for from your readers. Structurally, it is the first chapter of your business plan. And while it`s the first thing that people will read, I generally advise that you write it last.

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