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How to Write a Business Plan

A business plan covers two things: a statement of what you're trying to achieve, and how you'll actually achieve it. Writing one properly takes real time — but the process itself, not just the finished document, is often what makes the difference between a business that's thought things through and one that hasn't.

Do You Need a Business Plan?

If you're seeking external finance — a Start Up Loan, bank funding, or investment — a written business plan is essentially mandatory; lenders and investors expect one, and a credible plan (with a 12-month cash flow forecast) is usually a condition of the application.

Even if you're self-funding and never show it to anyone, writing a plan forces you to think through questions you might otherwise skip — who your customers actually are, what it really costs to serve them, and whether the numbers add up before you commit real money.

Sections of a Business Plan

A typical UK business plan covers:

  • Executive summary — a one-page overview of the whole plan, written last
  • Statement of objectives — what the business is trying to achieve and by when
  • Products and services — what you're selling and what makes it worth buying
  • Customers and market — who you're selling to and how big that market is
  • Main competitors — who else serves this market and how you differ
  • Marketing — how customers will actually find and choose you (see our marketing guide)
  • Management — who's running the business and relevant experience
  • Staff and employment — who you'll need to hire and when
  • Location and premises — where you'll operate from
  • Main suppliers — key suppliers and any dependency risks
  • Financing — how much you need, where from, and a cash flow forecast

Using a Template

Standard business plan templates are widely available — the British Business Bank provides one free as part of the Start Up Loans application process. A generic template is a useful starting structure, but every business is different, and a plan padded with irrelevant boilerplate or generic claims won't hold up if a lender or investor actually scrutinises it.

What Makes a Plan Credible

The plans that actually convince lenders share a few traits: specific numbers rather than vague claims, evidence behind market-size and demand assumptions rather than guesses, an honest account of risks and how you'd handle them, and a cash flow forecast that isn't simply optimistic. A shorter, honest plan beats a longer one padded with generic statements — assessors read a lot of these and can tell the difference quickly.

Frequently Asked Questions

Not legally, but it is strongly worthwhile even if self-funding. Writing a plan forces you to think through who your customers are, what it really costs to serve them, and whether the numbers work before you commit money — problems are far cheaper to spot on paper than after you have started trading.

A typical plan covers: executive summary, statement of objectives, products/services, customers and market, competitors, marketing, management, staffing, location, main suppliers, and financing with a cash flow forecast. Lenders and the British Business Bank's Start Up Loans template follow broadly this structure.

There is no fixed length — a credible, specific plan of 8-15 pages is generally more convincing to a lender than a padded 30-page document full of generic claims. Assessors read many of these and can tell quickly when content is filler rather than substance.

Yes — if you apply for a Start Up Loan, your delivery partner provides a free template and support developing your plan and cash flow forecast as part of the application process, regardless of whether the loan is ultimately approved.