Writing a Business Plan in the United Kingdom
Map out your strategies for success with 3E Accounting’s pocket guide on writing a business plan in the UK.
Steering a company to success requires more than just business savvy. It needs a concrete business plan upon which the foundations of success can be built upon. A business that lacks a plan also lacks direction and leadership, which will ultimately damage the company. Writing a business plan in the UK is the best way to start your entrepreneurial journey. Not only does it map out the framework of potential success, but it also concretises your position as a serious entrepreneur.
A Business Roadmap
Even the best business idea in the UK will flounder without a healthy business plan to carry it through. A well-drafted plan will be able to convince potential investors as well as inspire potential shareholder confidence. It is also important to regularly update your business plan. It should not be a static preface shown only at the beginning to garner support. Instead, a business plan should be viewed as an evolving mandate that keeps the company future-orientated on sustainable success.
Before you begin, you will need to carry out your due diligence and do some research. This includes figuring your company, its business activity, competition, and market potential, amongst others. You may also need to test your product and carry out field research to gauge how receptive the market is. Gathering such quantitative and qualitative data provides a clearer picture of the viability of your business idea.
A business plan starts with an executive summary that ideates the business. It provides an overall précis of the entire document. As such, the summary can only be written after everything else. It helps to keep post-its of critical points as you collate the various parts of the plan. This makes it easier to write a concise and on-point summary at the end.
The summary should provide a sketch of the vision mission and management structure, key points on finance as well as market segmentation and competition. As your business plan is a private document, it should also have a confidentiality notice.
Next comes the main parts of the business plan. Bear in mind, the plan should be easy to read with useful infographics, bullet points and business charts. It should include the following:
- The Company and Business: this provides a background of the business starting with its vision, mission, objectives, aims and management structure. Adding long and short-term milestones, as well as sustainability, is also advisable.
- Branding and Marketing: this is where you present all the data collected from your research. It must include your branding and marketing rollouts and strategies.
- Operations and Risk Management: details the operations on how your business will carry out its activities, including logistics, human resource, and training. Risk and fall-back plans should include insurance as well as crisis management strategies.
- Financials: the most scrutinised part of a business plan. It pays to be meticulous and all figures proposed should be justifiable. You will need to include capital requirements, expenditures, and forecasted return on investment (ROI). Most importantly, it must have a financial forecast which provides cash flow and profit/loss projections, amongst others. Ideally, it should be a three to five-year plan.
Ideally, you should finish off with an information page or appendix that includes key terms, contact information, etc. By putting together all this information, you will soon have a powerful document that provides a sense of direction. It will instil a sense of confidence in investors with its sustainability and scalability. Such a document will aid in securing loans or investment and attract the best talents in the business.
If you require help writing a business plan in the UK, get in touch with 3E Accounting. As company formation specialists, we are well-versed in all aspects of starting a business, including writing a business plan. Along with our affiliates and partners, we offer international expertise and regional experience par excellence. Contact 3E Accounting today to learn more about our innovative and customisable business solution packages.