Which document is crucial for potential investors to evaluate a business?

The business plan is a crucial document for potential investors because it provides a comprehensive overview of the business, including its objectives, strategies, market analysis, financial projections, and operational plans. Investors use it to understand the overall vision and direction of the business, assess its viability and growth potential, and determine how their investment will contribute to the company’s success. A well-structured business plan outlines not only the financial aspects but also the operational and marketing strategies that will be employed, making it a key resource for informed investment decisions.

Other documents such as financial statements give insight into past performance, while marketing manuals and operational guidelines serve specific internal purposes but do not encapsulate the full picture necessary for investors to evaluate a business effectively.