By Claire Howarth
Claire Howarth: Chartered Accountant and Tax Advisor since 1991. Expertise amplified through Novis & Co’s integration with DJH Mitten Clarke in February 2023. Sharing insights to empower entrepreneurs.
Writing a Business Plan UK
t’s a simple fact if you need any financial support either as a startup or to expand an established business you will need to present the lender with a business plan and cash flow forecast.
It’s a simple fact if you need any financial support either as a start up for new businesses or to expand an established small business you will need to present the lender or potential investors / business partner / venture capitalists with a comprehensive plan including a cash flow forecast and financial projections in a section of your business plan.
This is generally met with groans from business owners because for some reason most people see this as a chore but know it’s a mean to an end so they comply, present to the bank with their application and then swiftly proceed to bury the plan in the bottom of a drawer.
Why? The plan should then become a working tool and blueprint for the next stage of your business and I suggest regardless of whether you require any finance a business plan should be drawn up anyway.
A business plan, in order to help you clarify your business objectives should ideally include:
- A business / company description and mission statement to outline your business idea
- Management structure and management team profiles to show your own strengths and of those you will be working with day-to-day operations
- Financial forecasts – this will include projections of income, expected costs and potential profit together with cash flow statement to highlight funding requirements
- Sales and marketing plan with clear, detailed information on objectives including in-depth market analysis/market research on your target market and how you will bring your product or service to it, i.e your competitive advantage and unique selling point. For example, if you know you want to expand your business overseas and you’re going to need a freight forwarder to help you, include it in your business plan.
- An executive summary which is a concise overview of the essential points
- A regular review of where you are, and where you thought you would be, will either provide great comfort that you are on the right track or, more importantly, warn you if you are straying off course and potential problems with your business growth or business model.
Key things to ask yourself when making comparisons to the original plan are:
- Why is it different?
- Can I control it?
- Do I need to reassess my business proposition?
- Was the plan not realistic? Do I need to prepare another?
- If the results are better than expected what specific elements have led to the additional success?
If the thought of preparing a business plan fills you with dread then seek assistance from your accountant. Their involvement will add value to the process as their experience may highlight additional opportunities or threats that you had not considered.
Most of the banks provide templates that could be used on something as simple as Microsoft word. This ensures you present the information to them in the way they wish to see it and with the right content to give you a great business plan layout as well as a detailed business plan. Alternatively, it’s easy to find a free business plan template on line or you could engage expert business plan writers.
# Writing a business plan UK