Guide
Write a business plan
Step-by-step guide to writing a business plan that will help you secure funding and stay focused.
A business plan is the single most important document you will create before launching your business. It forces you to think through every aspect of your idea and is required by virtually every lender, investor, and grant body.
You do not need to write it in order. Most people start with the sections they know best and write the executive summary last. A typical plan is 15-30 pages excluding appendices.
The 12 essential sections
Every business plan follows a standard structure. Lenders expect to see all 12 sections, even if some are brief. Missing sections suggest you have not thought through that area of your business.
Financial projections
This is the section lenders scrutinise most carefully. Unrealistic numbers destroy your credibility. Base every figure on evidence - competitor benchmarks, supplier quotes, market research data, or your own trading history.
Writing tips for each section
Executive summary
Write this last. Summarise the entire plan in under 1,000 words. A busy investor may read only this section, so make it compelling. Include your business concept, target market, competitive advantage, funding requirement, and projected returns.
Market analysis
Use data, not opinions. Quote ONS statistics, trade association reports, or Google Trends data. Show you understand your target market's size, growth rate, and buying behaviour. Banks want evidence, not enthusiasm.
Competitive analysis
Never write 'we have no competitors'. Every business has competition, even if indirect. List 5-10 competitors, analyse their strengths and weaknesses, and explain your competitive advantage clearly.
Financial projections
Build three scenarios — base case (realistic), optimistic (if everything goes well), and pessimistic (if challenges arise). Lenders respect founders who understand downside risk.
What lenders look for
- Realistic assumptions: Every revenue figure should be justified. 'We expect 50 customers per week' needs evidence - footfall data, competitor benchmarks, or pre-launch orders.
- Understanding of costs: Missing obvious costs (VAT, employer NI, business rates, insurance) suggests inexperience.
- Cash flow awareness: Lenders care more about when cash arrives than about profit. A cash flow forecast is essential.
- Contingency planning: What happens if sales are 30% below forecast? Having a plan B shows maturity.
- Personal investment: Lenders want to see you have 'skin in the game'. Most expect you to invest some of your own money.
Sole traders need a Personal Survival Budget too
If you are applying for a Start Up Loan or bank loan as a sole trader, you will need a Personal Survival Budget alongside your business plan. This shows your monthly personal living costs (rent, food, transport, utilities) and proves you can afford to live while the business grows.
Your business cash flow forecast should include 'Owner's Drawings' as a regular outflow, matching the amount you need from your Personal Survival Budget.
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Download a free business plan template
Start Up Loans provides a free template covering all 12 sections with guidance notes and worked examples. Available at startuploans.co.uk.
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Write your executive summary last
Summarise the entire plan in under 1,000 words. Cover your business concept, target market, competitive advantage, funding ask, and projected returns.
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Base every number on evidence
Use supplier quotes for costs, competitor benchmarks for pricing, and market research for sales projections. Cite your sources - lenders check.
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Create three financial scenarios
Base case (realistic), optimistic, and pessimistic. Show you understand what could go wrong and have planned for it.
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Get feedback before submitting
Ask a mentor, accountant, or business adviser to review your plan. Fresh eyes spot gaps and unrealistic assumptions you have missed.