Business Planning deals with creating a document that outlines the goals of the business and how it will achieve those. This business plan is the road map for running the business. All companies should have a basic business plan.
Another purpose of the business plan is to secure a loan or to attract investors. In that case the business plan is a formal document intended for an external audience. This business plan is really a marketing piece to make your business opportunity look attractive to an investor. Only if you’re looking for financing do you have to develop this formal business plan.