Write a business plan

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.