business plan guide uk

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• Business and self-employed
• Business finance and support

Write a business plan

Download free business plan templates and find help and advice on how to write your business plan.

Business plan templates

Download a free business plan template on The Prince’s Trust website.

You can also download a free cash flow forecast template or a business plan template on the Start Up Loans website to help you manage your finances.

Business plan examples

Read example business plans on the Bplans website.

How to write a business plan

Get detailed information about how to write a business plan on the Start Up Donut website.

Why you need a business plan

A business plan is a written document that describes your business. It covers objectives, strategies, sales, marketing and financial forecasts.

A business plan helps you to:

• clarify your business idea
• spot potential problems
• set out your goals
• measure your progress

You’ll need a business plan if you want to secure investment or a loan from a bank. Read about the finance options available for businesses on the Business Finance Guide website.

It can also help to convince customers, suppliers and potential employees to support you.

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Free Simple Business Plan Template

Our experts

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Your business plan is the document that adds structure to your proposal and helps you focus your objectives on an achievable and realistic target. It should cover every aspect of what your business journey will look like, from licensing and revenue, to competitor and sector analysis.

Writing a business plan doesn’t need to be a difficult process, but it should take at least a month to be done properly.

In today’s capricious business climate there’s a lot to consider, such as the impact of political challenges like Brexit. These details are especially important in today’s bad economy. Investors are looking for entrepreneurs who are aware of the challenges ahead and how to properly plan for them.

Below, you’ll find everything you need to create a concise, specific and authoritative business plan. So let’s get started turning your idea into a reality!

Click here to download your free Business Plan template PDF – you can fill in your own details and those of your business, its target market, your customers, competitors and your vision for growth.

Our below guide will give you detailed advice on how to write a quality business plan, and our PDF download above can give you a clear template to work through.

But, creating an effective business plan needs….planning! That’s where a high quality planning tool can help.

We recommend creating an account with monday to use this tool – there’s even a free trial . Doing so means you can start your entrepreneurial journey on the right foot.

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What to include in your business plan template

There’s a lot of information online about how to write a business plan – making it a confusing task to work out what is and isn’t good advice.

We’re here to cut through the noise by telling you exactly what you need to include for a business plan that will satisfy stakeholders and help develop a key identity for your brand. By the end, you’ll have a plan to make even Alan Sugar proud and can get started with the most exciting part – running your business.

Throughout this guide, we’ve featured an example business plan template for a new restaurant opening in Birmingham called ‘The Plew’. In each section, you’ll be able to see what the contents we’re describing would look like in a ‘real-life’ document.

What to include in your business plan:

• Executive Summary
• Personal summary
• Business idea
• Your product or service
• Market analysis
• Competitor analysis
• Cash forecast
• Operations and logistics
• Backup plan
• Top tips for writing a business plan
• Business plan template UK FAQs

1. Executive summary

This section is a summary of your entire business plan. Because of this, it is a good idea to write it at the end of your plan, not the beginning.

Just as with the overall business plan, the executive summary should be clearly written and powerfully persuasive, yet it should balance sales talk with realism in order to be convincing. It should be no more than 1,000 words.

It should cover:

• Mission statement  – what is your company’s purpose?
• Business idea and opportunity – what unique selling point (USP) will you provide?
• Business model – how will your business operate?
• Business objectives – what are you aiming to achieve?
• Target market – who is your customer base?
• Management team – who are the owners/senior staff?
• Competition – who are you competing against?
• Financial summary – can you prove the business will be profitable?
• Marketing strategy – what is your marketing plan and associated costs?
• Timeline – how long will it take to launch/grow your new business?

It sounds like a lot – but don’t feel you have to spend hours putting this together. Here’s what the above information for an executive summary might look like when put into our example business plan template for ‘The Plew’:

Startups’ business plan template example: executive summary

2. Personal summary

Investors want to know who they’re investing in, as much as what. This is where you tell people who you are, and why you’re starting your business.

Outline your general contact details first, giving your telephone number, email address, website or portfolio, and any professional social media profiles you might have.

Run through this checklist to tell the reader more about yourself, and put your business ambitions into context.

• What skills/qualifications do you have?
• What are you passionate about?
• What is/are your area(s) of industry expertise?
• Why do you want to run your own business?

Here’s what our two fictional co-founders of ‘The Plew’ might write in their personal summaries for our example business plan. CEO Gabrielle Shelby, has highlighted her expertise in the restaurant industry, while CFO Freya Moore outlines her accounting and finance knowledge.

Startups’ business plan template example: personal summary

Richard Osborne, founder and CEO of UK Business Forums, says personality is important in a business plan.

“Having a strong, personal reason at the heart of your business model will help keep you going and give you the motivation to carry on,” he affirms.

3. Business idea

This section is essentially to offer a general outline of what your business idea is, and why it brings something new to the market.

Here, you should include your general company details, such as your business name and a  one-line summary of your business idea known as an  elevator pitch. This section should also list a few key business objectives to show how you plan to scale over the next 1-3 years.

We also recommend carrying out a SWOT analysis to tell investors what the strengths, weaknesses, opportunities, and threats are for your business idea. Think about:

• Strengths: ie. why is this a good time to enter the sector?
• Weaknesses: ie. what market challenges might you encounter?
• Opportunities: ie. what demand is your product/service meeting in today’s market?
• Threats: ie. how will the business be financed to maintain liquidity?

In the template below, you can see a breakdown of the above information for ‘The Plew’. At the top is its mission statement: “to craft an unforgettable dining experience in a chic atmosphere.”

Startups’ business plan template example: business idea

Need a business idea? We’ve crunched the numbers and come up with a list of the best business ideas for startup success in 2023 based on today’s most popular and growing industries.

4. Your products or services

Now it’s time to explain what you are selling to customers and how will you produce your sales offering.

Use this section to answer all of the below questions and explain what you plan to sell and how. Just like your business idea outline, your answers should be concise and declarative.

• What product(s) or service(s) will you sell?
• Do you plan to offer new products or services in the future?
• How much does the product or service cost to produce/deliver?
• What is your pricing strategy ?
• What sales channels will you use?
• Are there legal requirements to start this business?
• What about insurance requirements?
• What is the growth potential for the product or service?
• What are the challenges? eg. if you’re looking to sell abroad, acknowledge the potential delays caused by post-Brexit regulations.

What insurance and licensing requirements do you need to consider?

Depending on what your business offers, you might need to invest in insurance or licensing. Our How To Start guides have more details about sector-specific insurance or licensing.

Public Liability, Professional Indemnity, and Employers’ Liability are the most well-known types of business insurance. We’ve listed some other common other licensing and insurance requirements below:

In our example product/service page for ‘The Plew”s business plan, the founders choose to separate this information into multiple pages. Below, they outline their cost and pricing, as well as sales strategy. But they also include an example menu, to offer something a bit more unique and tantalising to the reader:

Startups’ business plan template example: product list and pricing strategy

5. Market analysis

This section demonstrates your understanding of the market you are entering, and any challenges you will likely face when trying to establish your company.

This section pulls all of your target market and customer research together to indicate to stakeholders that you are knowledgable about the sector and how to succeed in it.

• Who is your typical customer and where are they are based? Describe the profile of your expected customers eg. average age, location, budget, interests, etc.
• How many customers will your business reach? Outline the size of your market, and the share of the market that your business can reach.
• Have you sold any products/services to customers already? If yes, describe these sales. If no, have people expressed interest in buying your products or services?
• What have you learned about the market from desk-based research? What are the industry’s current challenges, and how has it been affected by the economic downturn?
• What have you learned about the market from field research? (eg. feedback from market testing like customer questionnaires or focus group feedback).

What is your marketing strategy?

Once you’ve highlighted who your rivals are in the market, you can provide details on how you plan to stand out from them through your marketing strategy. Outline your  business’ USP, your current marketing strategy, and any associated advertising costs.

‘The Plew’ identifies its target audience as young, adventurous people in their mid-30s. Because of the restaurant’s premium service offering, its audience works in a well-paid sector like tech:

Startups’ business plan template example: customer analysis

6. Competitor analysis

This section demonstrates how well you know the key players and rivals in the industry. It should show the research you have carried out in a table format.

Begin by listing the key information about your competitors. Don’t worry about sounding too critical, or too positive. Try to prioritise accuracy above all else.

• Business size
• Product/service offering
• Sales channels
• Strengths/weaknesses

Competitors will take two forms, either direct  or  indirect. Direct competitors sell the same or similar products or services. Indirect competitors sell substitute or alternative products or services.

Here’s a breakdown of the strengths, weaknesses, and opportunities, and threats presented by a competitor restaurant for ‘The Plew’ called Eateria 24. At the bottom, the founders have written what learnings they can take from the chart.

Startups’ business plan template example: competitor analysis

Check out our list of the top competitor analysis templates to download free resources for your business, plus advice on what to include and how to get started.

7. Cash forecast

Outline your financial outlook including how much you expect to spend, and make, in your first year

All of your considered costs can be put into one easy-to-read document called a monthly cash forecast. Cash forecasts contain:

1. Incoming costs such as sales revenue, customer account fees, or funding.

2. Outgoing costs such as staff wages or operating expenses. The latter can cover everything from advertising costs to office supplies.

For those firms which have already started trading, include any previous year’s accounts (up to three years) as well as details of any outstanding loans or assets.

Annual cash forecast: what is it?

By conducting 12 monthly cash forecasts, you can create an annual cash forecast to work out when your company will become profitable (also known as breakeven analysis) . You will break even when total incoming costs = total outgoing costs.

In your annual cost budget, make sure to also include month opening/closing balance.  This is important to monitor for accounting, particularly for year-end.

• Opening balance = the amount of cash at the beginning of the month
• Closing balance = the amount of cash at the end of the month

The opening balance of any month will always be the same as the closing balance of the previous month. If you are repeatedly opening months with a negative closing balance, you need to adjust your spending. Here’s an example of what ‘The Plew’s financials might look like in its first year of operation:

Startups’ business plan template example: cash forecast

8. Operations and logistics

Explain how your day-to-day business activities will be run, including key business partnerships around production and delivery.

A.) Production

List all of the behind the scenes information about how your business will operate. Include:

• Management team – who do you plan to hire as senior staff and why?
• Premises –  where will you be based? What will be the cost?
• Materials –  what materials/equipment will you need to make your product/service?
• Staffing –  how many employees will you hire? How much will they cost?
• Insurance – what insurance do you need for production?

B.) Delivery

Detail how your customers will receive your product or service. Include:

• Distribution –  how will you sell your product to customers?
• Transport –  how will you transport the product/service to customers or partners?
• Insurance –  what insurance do you need for delivery?

C.) Supplier analysis

Lastly, you should carry out a supplier analysis.  Write down 2-3 suppliers you plan to use as part of your business operations and evaluate them on factors like location and pricing.

In our example business plan for ‘The Plew’, the founders have chosen to present this information in an easily-digestible chart, breaking down the leadership and employees into two different areas: product development and operations.

Startups’ business plan template example: staffing section

9. Backup plan

Explain how you will manage any surprise losses if your cash forecast does not go to plan.

In the event that your business does not go to plan, there will be costs to incur. A backup plan outlines to potential investors how you will pay back any outstanding loans or debt.

In the short-term: 

If your cash-flow temporarily stalls, what steps could you take to quickly raise money or make savings? For example, by negotiating shorter payment terms with your customers.

In the long-term:

If you’ve noticed a drop in sales that seems to be persisting, what changes can you make that would improve cash flow longer term? For example, can you do more of your business online to reduce rent fees?

To placate investors even further, it’s a good idea to include details about potential support channels you can utilise (eg. a business network or contact) who might be able to help if you get caught in a sticky cash-flow situation.

Startups’ 5 top tips for writing a business plan

• Keep your predictions realistic. Your business plan should showcase your knowledge of the sector and what’s achievable. It’s not about impressing investors with big numbers or meaningless buzzwords.
• Don’t go over 15 pages. Business plans should be engaging, which means sticking to the point and avoiding a lot of long-winded sentences. Keep your executive summary to less than 1,000 words, for example.
• End with supporting documents. Use your appendix to include product diagrams or detailed research findings if these are helpful to your business case.
• Get a second pair of eyes. Everyone misses a spelling error or two – invite a trusted business contact or associate to look over your business plan before you send it anywhere.
• Leave enough time to write! It’s exciting to think about getting your business up and running – but planning is an important step that can’t be rushed over. Spend at least a month on writing to get all the details correct and laid-out.

At Startups.co.uk, we’re here to help small UK businesses to get started, grow and succeed. We have practical resources for helping new businesses get off the ground – use the tool below to get started today.

What Does Your Business Need Help With?

Designing a business plan is very important for laying the foundation of your business. Ensure you spend an appropriate amount of time filling it out, as it could save you many headaches further down the line.

Once your plan is complete, you’ll then be ready to look at other aspects of business set-up, such as registering your company. Sound daunting? Don’t worry!

Our experts have pulled together a simple, comprehensive guide on How to Start a Business in 2024, which will tell you everything you need to know to put your new plan into action.

• Can I write a business plan myself? Absolutely! There are plenty of resources available to help, but the truth is a business plan needs to reflect the owner's personal ambitions and passion - which is why entrepreneurs are best-placed to write their own.
• How long should a business plan be? We recommend your business plan is kept to a maximum of 15 pages. Keep it short and concise - your executive summary, for example, should be no more than 1,000 words.
• Is it OK to copy a business plan? While not technically illegal, copying a business plan will leave you in a poor position to attract investment. Customising your plan to your unique business idea and industry specialism is the best way to persuade stakeholders that you have a winning startup formula.

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How To Write A Business Plan

Updated: Nov 10, 2023, 4:23pm

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Table of Contents

Brainstorm an executive summary, create a company description, brainstorm your business goals, describe your services or products, conduct market research, create financial plans, bottom line.

Every business starts with a vision – and this vision is distilled and communicated through a business plan . A strong business plan outlines short-term and long-term goals, budget and whatever else you might need to get started (in addition, of course, to your hopes and dreams). In this guide, we’ll walk you through how to write a watertight and effective business plan that you can stick to.

Drafting the summary

An executive summary is an extremely important first step in your business. You have to be able to put the basic facts of your business in an elevator pitch-style sentence to grab investors’ attention and keep their interest. This should communicate your business’s name, what the products or services you’re selling are and what marketplace you’re entering.

Ask for help

When drafting the executive summary, you should have a few different options. Enlist a few thought partners to review your executive summary possibilities to determine which one is best.

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After you have the executive summary in place, you can work on the company description, which contains more specific information. In the description, you’ll need to include your business’s registered name, your business address and any key employees involved in the business. 

The business description should also include the structure of your business, such as sole proprietorship, limited liability company (LLC), partnership or corporation. This is the time to specify how much of an ownership stake everyone has in the company. Finally, include a section that outlines the history of the company and how it has evolved over time.

Wherever you are on the business journey, you return to your goals and assess where you are in meeting your in-progress targets and setting new goals to work toward.

Numbers-based goals

Goals can cover a variety of sections of your business. Financial and profit goals are a given for when you’re establishing your business, but there are other goals to take into account as well with regard to brand awareness and growth. For example, you might want to hit a certain number of followers across social channels or raise your engagement rates.

Another goal could be to attract new investors or find grants if you’re a nonprofit business. If you’re looking to grow, you’ll want to set revenue targets to make that happen as well.

Intangible goals

Goals unrelated to traceable numbers are important as well. These can include seeing your business’s advertisement reach the general public or receiving a terrific client review. These goals are important for the direction you take your business and the direction you want it to go in the future.

The business plan should have a section that explains the services or products that you’re offering. This is the part where you can also describe how they fit in the current market or are providing something necessary or entirely new. If you have any patents or trademarks, this is where you can include those too.

If you have any visual aids, they should be included here as well. This would also be a good place to include pricing strategy and explain your materials.

This is the part of the business plan where you can explain your expertise and different approach in greater depth. Show how what you’re offering is vital to the market and fills an important gap.

You can also situate your business in your industry and compare it to other ones and how you have a competitive advantage in the marketplace.

Other than financial goals, you want to have a budget and set your planned weekly, monthly and annual spending. There are several different costs to consider, such as operational costs.

Business operations costs

Rent for your business is the first big cost to factor into your budget. If your business is remote, the cost that replaces rent will be the software that maintains your virtual operations.

Marketing and sales costs should be next on your list. Devoting money to making sure people know about your business is as important as making sure it functions.

Other costs

Although you can’t anticipate disasters, there are likely to be unanticipated costs that come up at some point in your business’s existence. It’s important to factor these possible costs into your financial plans so you’re not caught totally unaware.

Think about task management software

Task management software can be really useful in mapping out the scope of a project, including getting your new business up and running. There are many apps out there, so finding the right solution can be tricky. We compiled this list of the best task management software (which ranks Monday.com in first place) which could help narrow down your search.

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Business plans are important for businesses of all sizes so that you can define where your business is and where you want it to go. Growing your business requires a vision, and giving yourself a roadmap in the form of a business plan will set you up for success.

Frequently Asked Questions (FAQs)

How do i write a simple business plan.

When you’re working on a business plan, make sure you have as much information as possible so that you can simplify it to the most relevant information.

A simple business plan still needs all of the parts included in this article, but you can be very clear and direct.

What are some common mistakes in a business plan?

The most common mistakes in a business plan are common writing issues like grammar errors or misspellings.

It’s important to be clear in your sentence structure and proofread your business plan before sending it to any investors or partners.

What basic items should be included in a business plan?

When writing out a business plan, you want to make sure that you cover everything related to your concept for the business, an analysis of the industry.

This includes potential customers and an overview of the market for your goods or services, how you plan to execute your vision for the business, how you plan to grow the business if it becomes successful.

You should also look at financial data around the business, including current cash on hand, potential investors and budget plans for the next few years.

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A business plan is essential for reaching financial success. Download our business plan template and use it to help you achieve your goals.

Whether you’re starting a business or planning to expand, having a business plan can help to get you on track and get some detail behind your ideas.

However, research from Barclays shows that one in four businesses don’t have a business plan.

There are a number of useful tools worth having at your disposal if you want your business to succeed. While one of those is accounting software , so you can keep track of your business admin (forecast your cash flow, manage your invoices , and more), another is a business plan.

So what are the advantages of business planning and how could it help your business to succeed? Read this article to find out more.

What is a business plan?

There are numerous reasons why you might want to start a business .

You might have a great idea. Perhaps you’ve always wanted to run your own company. Or maybe you’ve been made redundant – perhaps due to the coronavirus (COVID-19) outbreak – and you’re ready to take the leap to entrepreneurship.

But for your business to be a success, your passion, enthusiasm, hard work and skills should be built on a practical framework. And that’s the case whether it’s a new business or an existing one.

This is where your business plan comes in.

A key part of that practical framework, a business plan is a document that maps out the purpose of your company, what it does and its strategic goals, among other things.

Creating a business plan for your company will guide you in defining your unique selling proposition (USP), and give you clarity of the marketplace you wish to operate in and the competition your business will be up against.

You’ll use your business plan to work towards a series of milestones that will help you to grow your company.

But your business plan shouldn’t be a static document – you should update it regularly as your company evolves, so you can ensure things are moving in the right direction.

Benefits of writing a business plan

Jennifer O’Toole, Senior Partner at accountancy firm Thomas R Dixon, says: “A business plan is like a flight path. It lets you know where you want to go, what you want to achieve, what you have in order to achieve your goals and probably most importantly what problems you can expect along the way.

“Being able to identify potential threats, problem areas that could affect the business, and to be able to develop coping strategies in a proactive manner rather than in a reactive stance, is key to business survival.”

It’s also a great way to share information about your business, to develop your thinking and test scenarios before you make any changes (like leaving your job and going it alone), and it gives you a way to measure how things go when you do start up.

And if you’re looking for finance, then a business plan can make a difference.

Rebecca McNeil, MD for Business Lending and Enterprise at Barclays, says: “A strong plan can help applications for finance from a business loan to alternative forms of finance and investment.”

Reasons people skip business planning

If it’s so helpful, why don’t more people choose to have one? Here are some of the common challenges:

• Time.  If you’ve thought through your business, it shouldn’t take long to create your business plan. Keep it short and simple and choose a format that works for you.
• Uncertainty. It’s true that you can’t know what will happen until you start a business but a plan can help you spot potential pitfalls and helps you to understand the finances behind your idea. Read our advice on ways to get more accurate figures in your business plan.
• Lack of agility. Some people think business planning stops businesses evolving, but a good business plan should be current and adapt as you test and learn. It needs to be part of the business, not left in a drawer.

Read more about business plans

• Business plan template for food and drink companies
• Business plan template for shops and retail companies
• Business plan template for online retail and ecommerce companies
• Business plan template for professional services companies

The best format for your business plan

Many people assume that a business plan will be a hefty document containing lots of facts and figures, but it doesn’t have to be. The key thing is to choose a format that will work for you and your business. That would be:

• One you’ll use.  Something that can become part of your day-to-day business rather than something you’ll never refer to. Have your business plan on the wall as a manifesto or mind map, make a presentation or create a visual guide – whatever works for you.
• One that makes it simple to express your views. If you’re a writer, you may be happy with a document, a designer might like a more visual medium. Your business plan should excite and inspire, so pick a format that lets you do that.
• One that’s shareable.  A business plan will be seen by lots of people, from your bank manager and accountant to prospective investors or employees, so pick a format that makes it easy to share.

What to include in your business plan

What should a business plan include? Every plan is likely to be different but there are some common pieces of information that are often included:

• An overview of the business.  What does it do and what makes it different?
• Goals.  What does the business want to achieve? This should set some SMART objectives that will quickly show if the business is succeeding.
• Your audience and the market.  Who will your business supply and how will it reach them? How big is the market and who are your key competitors?
• Products and pricing.  What will you be selling and how will your prices be set? How does this compare with your competitors?
• Who is involved.  Many investors say they invest as much in the people as they do in the business. Share some information about people’s roles, experience and passions.
• Financials.  Provide details about sales, costs, break-even points and where investment will come from. If you’re looking for people to invest, you should include information about likely returns. If you’re looking for ways to finance your business, crowdfunding , alternative finance and government funding are a good place to start.

Some business plans will include other sections, like a SWOT analysis or a full marketing plan. You might find these useful for your business, so feel free to include them too if you wish.

How to use your business plan

Many business owners invest time in producing a business plan and then never look at it again.

While it’s valuable to get your ideas clarified and to test your thinking before you launch your business, it’s even better if it’s embedded into your day-to-day business too.

As O’Toole says: “Business planning is a continuous process – from the initial start up of any business to stage two of developing and growth of existing sales and developing new income streams.

“As established businesses mature and diversify, business planning continues to play a fundamental role in ensuring that the company’s long-term strategies are being met.”

Here are some ways your business plan can work for you:

• Take the sales, cash flow and expense predictions and measure them against your actual figures. This helps you spot whether you’re on track and if things need to be revised.
• Revisit your goals every month to see how you’re progressing.
• Keep updating it to include customer input and quotes. Real feedback is essential for keeping a business on track.
• Revisit it once a year to see if changes to the market, technology or competition has had an impact. Businesses need to continue to evolve to survive in the longer term.

Where to get help with your business plan

Sometimes you’ll need additional information to pull together your plan. You could:

• Speak to your accountant. They don’t just help you with financials or accounting software , they can also offer advice about planning your business.
• Talk to your bank . Many have small business experts who can help.
• Use business planning templates. Our free, easy-to-follow Word template will help to make the process easier.

Editor’s note: This article was first published in October 2017 and has been updated for relevance.

Business plan template

Thinking of starting a business or looking for investment but need help putting a plan together? Get our free, easy-to-use business plan template.

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Comments (2)

Business plans should be flexible and imbibe SMART goals for both short term and long term. Objective oriented plans would fetch results in stipulated time period.

I’ve started a transportation company I’m growing and would need some help with a small loan /grant as I would need a bigger van etc is this something I would be able to get help with?

Sure, there are loans and grants you could apply for. We cover some of them in this article: https://www.sage.com/en-gb/blog/government-grants-for-small-businesses/

Thanks, Stacey

See advice specific to your business

• Business planning

How to write a business plan

24 April 2024

• More like this Less like this

If you're planning to launch a start-up or small business, this guide on how to write a business plan will help you create an effective road map to success. A thoughtfully researched, well-structured business plan can give you greater clarity on your business’s vision, help you avoid potential pitfalls and can help ensure you stay on track for your business goals. Read on to discover the essential elements of business planning, common mistakes to avoid, and business plan tips on how to make your plan compelling and ready for investors.

What is a business plan? Why is a business plan important? What to consider when writing a business plan? What to include in a business plan? Business plan formats How to write a business plan How to start a business plan What does a business plan look like? How long should a business plan be? Common business plan mistakes FAQ on creating a business plan

What is a business plan?

A business plan is a strategic document that details your business's objectives and the steps you’ll take to achieve them.

It is a tool that covers everything from your business strategy and key goals to financial projections and management structure. A business plan is also your opportunity to describe your company or proposed project in detail, showcasing both your short-term and long-term goals, budget details, and unique selling propositions (USPs).

Let's dive into understanding what a business plan looks like, why it's so important, and how you can create one for your business.

Why is a business plan important?

A business plan is important because it helps you create an effective plan for your new enterprise that allows you to make informed decisions, set clear goals, and manage your enterprise effectively.

The importance of a business plan becomes clear when you want to set your business apart from the competition.

Here’s how a business plan can help:

• Guidance and structure: A plan outlines your goals and strategies, providing a roadmap for your business.
• Attracting investment: It's essential for attracting investors and lenders who need to understand your strategy before funding it.
• Identifying strengths and weaknesses: Business plan writing helps identify potential pitfalls and strengths in your business idea.
• Planning for growth: Creates a strategy for facilitating future growth and expansion.
• Understanding your market: Includes research that helps you understand your target audience and competition.

What to consider when writing a business plan

When you write a business plan, there are important questions you need to consider.

Step 1. Understand your target market

The first step is understanding your target market. Who are they? What do they need? How will your product or service cater to these needs?

Your business plan should be designed to serve this audience. You’ll need to conduct thorough market research and include this data in your plan.

Step 2. Define your business goals

The second step is to clearly define your business goals. What do you want to achieve in the next year, five years, or ten years?

Having clear, measurable objectives will guide your business plan and help you stay focused on your end goal.

Step 3. Know your USP

Next, consider your unique selling proposition (USP). This is what sets you apart from the competition. Highlighting your USP in your business plan will not only help you stand out but also attract potential investors.

The financial aspect is another key factor. You need to have a clear understanding of your financial needs, cash flow projections, and profitability forecasts. This information is particularly important if you're seeking funding from investors or lenders.

Lastly, remember that your business plan is a living document. It should evolve as your business grows and changes.

Be prepared to review and update it regularly to reflect new goals, strategies, or market conditions. This flexibility will ensure that your business plan remains relevant and effective.

What should you include in a business plan?

When developing a business plan, it can be helpful to first look at business plan examples in your relevant industry. There is no fixed business plan template, but many plans will include the following elements:

1. Executive summary

Your business plan should start with a succinct overview of your plan that highlights the key points and creates a strong initial impression. It should be compelling enough to encourage readers to read further.

2. Company description

This section should provide an overview of what your business does, the problems it solves, and the market it serves.

3. Market analysis

The market analysis section requires a thorough understanding of your industry, target market, and competition. You should demonstrate knowledge of market trends, customer needs, and the competitive landscape.

4. Business goals

Define both your short-term and long-term objectives to provide a clear vision of where you want your business to be in the future. You can also describe how you plan to achieve these goals.

5. Products and services

You should describe what you're selling or what services you offer, highlighting how your offerings stand out from the competition.

6. Financial plan

You should include a detailed overview of your finances, including cash flow statements and profit projections. This section shows potential investors that you have a solid understanding of the financial aspects of running a business.

Your business plan is a marketing document. It should be concise, engaging, and persuasive, convincing potential investors, partners, and employees of the viability and potential of your business.

Business plan formats

Business plan format can vary depending on industry. For instance, a restaurant's business plan might feature a sample menu and location demographics, while a tech start-up may focus on development timelines and patent protections.

A small business plan is likely to look very different to a large business plan. Tailor your business plan to your specific industry and business type.

The complexity of your business plan might also depend on its purpose. If you're seeking significant investment, you'll need detailed financial projections. However, if the plan is mainly for internal use, you might focus more on strategy and team organisation.

In short, while there are common components in every business plan, the specifics can vary widely. Ensure your business plan is relevant to your industry, audience, and business needs.

Writing a business plan requires research and attention to detail for each section. Below, you’ll find a 9-step guide for researching and defining each element in the plan.

• Write an executive summary
• Draft a business description
• Conduct market analysis
• List your management and organisation structure
• Outline services or products
• Define your marketing and sales strategy
• Describe your funding needs
• Plan financial projections
• Appendix of supporting documents

1. Write an executive summary

This is a brief overview of your business plan. It should include your business’s name, location, and the products or services you offer. Also mention your mission statement and your business’s USP (unique selling proposition). Remember, the executive summary should be concise yet compelling, persuading the reader to learn more about your business.

Your executive summary should include:

• Business concept: What does your company do? What are your products or services? This section should clearly articulate your business’s core concept.
• Company information: Include the company’s name, when it was founded (if applicable), the names of the founders and their roles, the team and size, and location of premises.
• Growth highlights: If your business is already established, describe how much it has grown since inception, including financial or market highlights.
• Products/services: Describe what you sell or the service you offer. Explain how it benefits your customers and what makes it unique to the market.
• Financial information: If you’re seeking funding from investors, include a brief overview of your projections and what you’re asking for.
• Future plans: Summarise where you plan to take your business in the future. This could include potential growth, new products or services, or expansion into new markets.

2. Draft a business description

Describe your business in detail. Include the business structure (sole trader, partnership, limited company), the nature of your business, and the marketplace needs that your business aims to fulfil.

3. Conduct market analysis

This is where you demonstrate that you understand your industry and market. Include information about your target customers, including their demographics and buying habits. Also analyse your competition, outlining their strengths and weaknesses.

What else to include:

• Industry overview: This gives a broad view of your industry. You can include its size, growth rate, trends, and outlook.
• Target market: Identify who your customers are. You should define them by demographic factors like age, gender, income level, and geographic location. Also consider psychographic factors such as lifestyle, values, and attitudes.
• Market need: Determine what problem your product or service solves for your target market. This could be a gap in the market, an unfulfilled need, or an improvement on existing products or services.
• Competition analysis: Identify your direct and indirect competitors. Analyse their strengths and weaknesses, and how your business compares.
• Pricing and forecast: Set your pricing strategy based on your understanding of the market and competition. Include a forecast for your potential market share and sales.
• Regulatory environment: Understand any laws or regulations that could impact your industry. This includes permits, licenses, or regulatory compliance requirements.
• SWOT analysis: Identify your business's Strengths, Weaknesses, Opportunities, and Threats (SWOT). This helps you understand your business's position within the marketplace.

4. List your management and organisation structure

Outline your business's organisational structure. Identify the owners, management team, and any key employees. Include an organisational chart if possible.

5. Outline services or products

Describe what your business offers. If you sell products, explain how they are produced, their cost, and how you will sell them. If you provide services, describe them in detail, and list any associated costs.

6. Define your marketing and sales strategy

Detail how you plan to attract and retain customers. Include your sales strategy and the marketing channels you plan to use. Here's what it should include:

• Target market: Define who your customers are - their demographics, behaviours, and needs – and what kinds of marketing message they are likely to respond to. This will guide your marketing efforts.
• Unique selling proposition (USP): Identify what makes your product or service unique. How does it stand out from the competition? How will you convey this in your marketing?
• Pricing strategy: Explain how you have priced your products or services and why this will appeal to your target market.
• Sales plan: Detail how you'll sell your product. Will it be online, in a physical store, or both? Will you have a sales team? How will you bring your business to the target market?
• Promotional strategy: Describe how you will promote your business. This could include social media marketing, SEO, content marketing, advertising, public relations, and more.
• Retention strategy: Outline how you plan to keep your customers coming back. This could involve excellent customer service, loyalty programs, regular updates or improvements to the product or service, etc.
• Partnerships and collaborations: If applicable, discuss any partnerships or collaborations that will play a role in your marketing and sales plan.
• Measurement: Define how you'll measure the success of your marketing and sales efforts. This could be through key performance indicators (KPIs) like website traffic, conversion rates, customer acquisition cost, customer lifetime value, etc.

Your marketing and sales strategy should be flexible. As you learn more about your market and customers, adjust your strategies accordingly.

7. Describe your funding needs

If you are seeking investors or applying for business loans, you should include a funding request section within your business plan. It should include:

• Funding request: Start with the exact amount of funding you are seeking. Be clear and specific.
• Use of funds: Explain in detail how you plan to use the funds. This could be for starting costs, working capital, business expansion, or any other business expenses.
• Future funding: If you anticipate needing additional funding in the future, mention this. Provide an estimate of how much you might need, when you might need it, and what for.
• Business financials: Provide a snapshot of your financial statements and forecasts. Include your income statement, balance sheet, cash flow statement, business loans, and any other relevant financial data.
• Exit strategy: If you're seeking equity investment, describe your exit strategy. This could be selling the company, merging with another company, or going public with an IPO (initial public offering).
• Repayment plan: If you're requesting a loan, outline your plan for repaying it. Provide a schedule and method of repayment.

When considering where to secure funding, it's essential to explore your options. You may want to consider our app-based HSBC Kinetic Current Account for sole traders and single director shareholder businesses, or our Small Business Bank Account for small enterprises. Eligibility criteria apply.

Both accounts are designed to support the growth and financial management of your business. These platforms provide a range of services that cater to your business's needs, from daily transactions to long-term financial planning.

8. Plan financial projections

Provide a forecast of your business's financial future. This can include balance sheets, income statements, and cash flow statements for the next three to five years. Consider incorporating HSBC Kinetic into your financial planning for a comprehensive and digital-first approach to managing your business finances. Eligibility criteria apply.

Here are examples of what to include:

• Sales forecast: This is the amount of money you anticipate from sales of your products or services. It should be broken down monthly for the first year, then annually for the following two to five years.
• Income statement (profit and loss statement): This document shows your business’s profitability over time. It should include revenue, costs of goods sold, operating expenses, and net income.
• Cash flow statement: This demonstrates where your business is earning and spending money by highlighting how balance sheets and income affect your cash or cash equivalents.
• Balance sheet: This document provides a snapshot of your business's financial position at a particular moment in time. It lists your assets, liabilities, and equity.
• Capital expenditure budget: If there are large expenses for long-term assets such as property or equipment, these should be detailed here.
• Break-even analysis: This analysis shows when your company can cover all the expenses and make a profit.
• Financial ratios: These ratios compare financial metrics from your financial statements to assess your company’s financial health. They can provide valuable insights into how well the company is performing.

Your projections should be realistic, with all assumptions clearly stated. If you're a start-up with no financial history, base your projections on research and industry averages. If you're an existing business, use your past financial performance as a guide.

It can be beneficial to seek professional advice when preparing this section of your business plan, as it will be scrutinised by investors and lenders.

9. Appendix of supporting documents

An optional section that includes any additional supporting documents such as legal documents, permits, and contracts.

Writing a business plan is not a one-time event. It should be updated regularly as your business grows and changes.

How to start a business plan

Starting a business plan generally involves seven practical steps and may require consultation with other professionals. Here's a step-by-step guide on how to start:

Understand the purpose of your plan:

Research your industry:, outline your plan:, write the plan:, review and edit:, get feedback:, finalise your plan:.

Here are some people you might want to talk to when you write a business plan:

• Industry peers or mentors: People with experience in your field can provide valuable insights and advice.
• Business advisors or coaches: These professionals can offer guidance and help you avoid common pitfalls.
• Accountants: They can assist with the financial aspects of your plan, including projections and identifying potential costs.
• Potential customers: Speaking with your target audience can help you understand their needs and preferences, which can inform your marketing and sales plan.
• Legal advisors: If your business has any legal considerations, such as patents or regulations, a legal advisor can ensure these are properly addressed in your plan.

A business plan isn't a static document - it should evolve with your business. Regularly updating your plan can help you adapt to changes and stay on track towards your goals.

How long should a business plan be?

The recommended length of a business plan can vary depending on the complexity of your business model and the purpose of the plan. However, a typical business plan ranges from 15 to 35 pages.

What does a business plan look like?

Your business plan can and should be branded to reflect your business identity. Here's how:

Cover page:

Headers and sub-headers:, colour scheme:, images and graphics:, tone of voice:, consistency:.

Your plan is a reflection of your business. By incorporating your brand into the design, you're not just creating a strategy document - you're showcasing your business's identity.

FAQ on creating a business plan

You may have many questions when creating your new business plan. Below we look at some of the common ones.

How much information should I include in my business plan?

Your business plan should be concise yet comprehensive, providing all the necessary information. The length might also depend on whether you're writing the plan for internal use, for potential investors, or for a loan application, as each audience might have different expectations.

It can be helpful to mark out which sections are for which audience, so that you can edit into a new document as required, rather than starting a new business plan from scratch.

What is the proper business plan format?

Printed versions of your business plan should be on standard A4 paper, bound neatly, and presented in a professional manner. All electronic versions should be in a PDF format and have a clear file name for ease of sharing.

The layout should be clear and easy to navigate, with headers, sub-headers, bullet points, and plenty of white space to make the document easy to read.

Common business plan mistakes

There are common mistakes that businesses can make when writing a plan. These include:

Lack of planning:

Wrong audience:, it’s too long:, insufficient market research:, unrealistic financial projections:, not addressing potential risks:, poor grammar, spelling, and punctuation:, unclear business model:.

Writing a business plan may seem like a daunting task at first, but with careful planning, thorough research, and thoughtful consideration of each section - from the executive summary to financial projections - you can create a powerful document that serves as a roadmap for your business's success.

Business plan template

Remember, a business plan is not a static document. As your business grows and evolves, so too should your business plan. Regular reviews and updates will ensure your plan remains relevant and continues to guide your strategic decision-making.

Whether you're seeking investment, planning for growth, or simply setting the course for your day-to-day operations, a well-crafted business plan is an invaluable tool for every business owner. With the advice and guidance provided in this guide, you're now well-equipped to create a robust and compelling business plan.

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What are you looking for, how to write a business plan uk | free uk business plan template.

• Brought to you by AAT Business Finance Basics

• 1. What is a business plan?
• 2. Download: Free UK business plan template
• 3. Getting started on a business plan
• 4. How to structure a business plan step-by-step
• 5. What content should a business plan include?
• 6. UK business plan example 1: GreenTech Innovations
• 7. UK business plan example 2: EcoBoutique
• 8. UK business plan example 3: BizConsult Solutions
• 9. Business plan writing tips

You’ve got the brilliant business idea, you might have even started setting up or running your business, but writing a business plan and creating business proposals are vital for the launch and growth of any venture. It’s a document where you can organise all your ideas, create a company description, make sure that you’ve considered and researched everything, and ultimately decide that the business is viable. Commitment to making a business plan is a commitment to the business. Read our guide and download your free business plan template. 

What is a business plan?

A business plan is a document that details all the future plans and predictions for your business. It will explain your ideas, map out how they’ll be put into practice and provide relevant information and facts including the business details, management plan, operating plan, marketing and sales strategy , financial projections, and operational and team specifics.  

A business plan is essential in helping you: 

The business plan is a living, working document that should be read and reviewed regularly. If there are multiple directors or partners in the business then they should all be in agreement with what the plan outlines, the detailed information in the plan, and what is written in the plan. You will also need to share it with potential investors. The business plan will formalise all the ideas and assumptions, keep you focused, and ensure that everyone is on the same page.

How long writing your business plan should take will depend on your business size, the complexities of it and what stage you’re at. The most important thing is that it’s user-friendly and doesn’t include any waffle. Get straight to the nitty-gritty so that your stakeholders are engaged when reading it and so that you are more likely to use and update it regularly. Your business plan will probably cover the first three to five years. It’s important to include all the right information (see the checklist below) but it’s not a document to spend too long on. It’s more important that you are spending time running the business.

There are lots of business plan examples out there but typically yours should include: 

• What your business will do 
• The business structure and operations  
• Team members and their expertise 
• Market analysis to see current and projected state of the market and industry
• How your business will sell and market  
• Startup costs and funding required 
• Financial projections 
• Legal requirements 

Writing a business plan will allow you to take a step back and look at the business more objectively, predicting potential issues in advance, such as financial forecasts, and coming up with solutions or a shift in how you originally thought that you would do something.

Download: Free UK business plan template

We want to take the stress out of writing a business plan. Our free downloadable UK business plan template will guide you on everything you need to include and get your business primed for success. 

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Getting started on a business plan

Before you begin to make your business plan, keep these three things at the forefront of your mind. 

Focus on what makes you unique

Be creative with your plan, shout about your unique selling proposition (USPs) and what makes you different. Represent your brand using language and visuals, and talk about why you and your team are best to run this business.

Don’t over complicate it

Keep it concise so that you can get on with running the business and so the business plan is an easily readable and usable document. Too much detail in the plan can become confusing.

Be realistic and honest

The business plan will give you an indication of where you’re supposed to be. Review it every few months, update it as you go and change your activities in line with it. It will be impossible for you to predict everything so just give it your best shot and be prepared to be flexible.

How to structure a business plan step-by-step

The business plan should follow this format with these six sections. 

You must be logged in to use this checklist

The executive summary should always be written last. Think of it as a one-pager giving an overview of all the best bits of your plan. If the executive summary doesn’t captivate and interest the reader then it’s unlikely that they will read the rest of your plan. 

Describe your what, where, who and why - including your product/service, brand, location, business model and size. 

This section will involve the most amount of research as you study the current and projected conditions of the market and the industry, and look at what your competition is doing , before making your own marketing plans . 

Explain the experience, skills and credentials of all the people involved. Why are they the right people to make this a success?

Detail your required facilities, premises, systems and software. 

This section translates everything into numbers - your startup and running costs, funding , revenue projections with a cash flow forecast . 

What content should a business plan include?

Take a look at these business plan sections in more detail to see examples of the sort of details you should include, depending on your type of business. In the next section, we’ve used this framework to create some UK business plan examples featuring three fictional small businesses. 

1. The executive summary

Give a topline description of:

• In the most basic terms, what is the business? Is it a product or service? What does it do and how?
• Why is there a need for this business?
• What does this business do better than similar existing businesses?
• What experience or skills do you have that will help make this business a success?
• How will it make money?
• Who will your customers be?
• Who are your main competitors?
• How will people find out about you?
•  What is the opportunity for investors?

2. Business details and description

In this section:

• Describe your what, where, who and why – including your product/service, brand, location, business model and size.
• Food (lunch / dinner)
• Private hire for meetings / parties / events
• Putting on own events (music, comedy)
• Classes (e.g. cocktail making)
• Opening for breakfast / take away coffee
• What will the legal structure of your company be (LTD, PLC, sole trader, partnership, charity, social enterprise)?

3. Marketing and sales strategy

This section will likely be split into the following areas:

Market conditions and competition

You can include your gut instincts about the market here and what you know, but be sure to also back this up with evidence and research.

• Who are your biggest competitors? (Bear in mind competitors don’t always have to be exactly the same type of business, but something that people might spend their money on instead of your product).
• How do your competitors market and price themselves?
• How much is currently spent in your industry and what is demand like?
• What are the barriers to entry?
• What trends are happening internationally within similar businesses (maybe in countries like the US who may be further ahead)?

Target market

• Who is your target market ?
• Create a customer profile with as much detail as possible about your ideal customer.
• Make a list of friends, clients, business contacts, companies to target that might buy from you and include any current customers.
• For example: if you make jewellery, as well as selling it directly to the customer you could consider selling wholesale to other businesses, or starting jewellery making classes.
• What is your brand’s personality and characteristics?
• What does it stand for? What’s your mission statement?
• Do you have a tone of voice and brand guidelines?
• How will your brand do business/work with clients / communicate with customers?
• For example: business cards, leaflets, templates (invoice, e-newsletter), sales presentation.

Sales and marketing plan

• For example: website, social media, email marketing, blogging and blogger outreach, print advertising, radio, PR, partnerships, networking, podcasts, videos, directories, referrals, PPC, SEO.
• Plan your website – domain name , who will build it, what information and functionality does it need?
• Decide on a marketing budget .

4. Management and employees

• Who will make up your team and what relevant skills and experience do they have?
• Do you need to employ people?
• What friends/family/business contacts do you have with skills that might be able to help you (preferably for free)?
• Do you need to outsource anything?

5. Operational set up

• What premises do you need? Where will they be? Where will you work from?
• What assets/tools do you require (and which of these do you already have)?
• Are there any licences that you require? Any other legal considerations?

6. Financial plan and projections

This section should look at the following areas:

• For example: premises, insurance, licences, staff wages, your salary, stock, delivery costs, machinery, tools, computer, printer, telephone, electric, wifi, website, accountant, marketing, travel, design and print, training, photography, networking events, exhibitions, client entertaining.

Startup finance

• How much do you need to start the business and to ensure you have enough cash flow?
• How will you be financing it?
• Include as much detail as you can about your prices, pricing structure and margins.
• How much money do you need to make on a monthly basis to cover your costs and pay yourself and how much do you have to sell to make this figure?

Projected accounts

• Cash-flow forecast 
• Projected balance sheet 
• Projected profit and loss accounts

UK business plan example 1: GreenTech Innovations

1. executive summary.

GreenTech Innovations is a tech startup developing advanced solar panel technology that increases energy efficiency by 20%. This business addresses the growing demand for affordable and sustainable energy solutions. We stand out with our patented technology and a team of experienced professionals. Our revenue model includes direct sales to consumers and partnerships with energy companies. Our customers are environmentally conscious homeowners and businesses. Competitors include SolarCity and SunPower, but our superior technology and lower costs offer a competitive edge. We will use digital marketing and industry trade shows to gain visibility. 

GreenTech Innovations, based in London, specializes in renewable energy products. Our core product is an innovative solar panel with higher efficiency and lower costs. Revenue streams include direct sales, energy company partnerships, and government contracts. We are structured as an LTD company.

Products/services/revenue streams:

• High-efficiency solar panels
• Installation services
• Maintenance contracts
• Licensing our technology to other manufacturers
• Government and commercial contracts

Market conditions and competition: The renewable energy market is growing, driven by environmental concerns and government incentives. Competitors like SolarCity market themselves as premium providers; we will differentiate by offering better technology at a lower price. The UK market spends billions on renewable energy annually, with strong demand forecasted.

Target market: Our target market includes environmentally conscious homeowners and businesses. Ideal customers are tech-savvy, value sustainability, and are looking for long-term savings on energy costs.

The brand: Our brand stands for innovation and sustainability. Our mission is to make renewable energy accessible and affordable. We will communicate through a professional, approachable tone and prioritize customer education.

Sales and marketing plan:

• Website with e-commerce capabilities
• Social media campaigns
• SEO and PPC advertising
• Email marketing
• Partnerships with green energy advocacy groups
• Presence at trade shows and industry conferences

Our team includes Dr. Jane Smith (CEO), a solar energy expert with 20 years of experience, and John Doe (CTO), who holds several patents in solar technology. We plan to hire additional engineers, marketing professionals, and sales staff. Some tasks, such as legal and accounting, will be outsourced.

We need a manufacturing facility in London, equipped with state-of-the-art machinery for solar panel production. Our office will house our R&D lab, administrative offices, and logistics team. Necessary licenses include manufacturing and environmental permits.

6. Financial plan and projections costs:

• Manufacturing equipment: £500,000
• Initial inventory: £200,000
• Facility lease: £100,000/year
• Staff salaries: £300,000/year
• Marketing: £100,000

Startup finance:  We seek £1 million in funding through equity investment and government grants.

Pricing: Our solar panels will be priced competitively at £500 per unit, with a 30% profit margin.

Projected accounts:

• Year 1: Revenue £2 million, Profit £400,000
• Year 2: Revenue £4 million, Profit £1 million
• Year 3: Revenue £8 million, Profit £2.5 million

UK business plan example 2: EcoBoutique

EcoBoutique is a sustainable fashion retailer offering eco-friendly clothing and accessories. Addressing the rising demand for ethical fashion, we differentiate ourselves with unique designs and fair-trade practices. Our team, led by experienced fashion designer Emma Green, will operate from a flagship store in Manchester and an online platform. Our revenue model includes direct sales and partnerships. Our target customers are environmentally conscious consumers. Competitors include other sustainable fashion brands, but our commitment to quality and ethical sourcing sets us apart. We seek £500,000 in funding to establish our store and marketing efforts, promising growth and strong returns.

EcoBoutique, located in Manchester, sells sustainable clothing and accessories. Revenue streams include in-store and online sales, private events, and wholesale partnerships. The company will be structured as an LTD.

• Sustainable clothing (organic cotton, recycled materials)
• Accessories (bags, jewelry)
• Private hire for fashion events
• Online store
• Wholesale to other retailers

Market conditions and competition: The sustainable fashion market is expanding rapidly. Competitors like Patagonia and People Tree use online marketing and brand loyalty strategies. The UK fashion industry sees significant consumer spending, with growing interest in sustainable options.

Target market: Our ideal customers are eco-conscious individuals aged 20-40, interested in fashion and sustainability.

The brand: EcoBoutique stands for ethical fashion and sustainability. Our mission is to provide stylish, eco-friendly clothing. We will use a friendly, informative tone and emphasize our commitment to fair trade.

• Website with e-commerce and blog
• Social media and influencer partnerships
• Email newsletters
• Community events and pop-up shops
• Print advertising in eco-friendly magazines

Our team includes founder Emma Green, a fashion designer with a background in sustainability, and Liam Brown, our marketing manager with extensive retail experience. We will hire sales associates and an e-commerce manager. Some services, such as accounting and web development, will be outsourced.

We need a retail space in Manchester, designed with sustainable materials, and an e-commerce platform. Licenses required include retail and health & safety permits.

• Store renovation: £200,000
• Inventory: £100,000
• Marketing: £50,000
• Staff salaries: £150,000/year
• E-commerce platform: £50,000

Startup finance: We seek £500,000 through a combination of loans, personal investment, and crowdfunding.

Pricing: Clothing items priced between £30-£150, with a 40% profit margin.

• Year 1: Revenue £1 million, Profit £150,000
• Year 2: Revenue £1.5 million, Profit £300,000
• Year 3: Revenue £2 million, Profit £500,000

UK business plan example 3: BizConsult Solutions

BizConsult Solutions is a consulting firm offering business strategy and digital transformation services for SMEs. We address the need for modern, tech-savvy business solutions in a competitive market. Our experienced team, led by Sarah Lee, specializes in helping businesses innovate and grow. We generate revenue through consulting fees, workshops, and retainer agreements. Our target customers are SMEs across various industries. Competitors include larger consulting firms, but our focus on SMEs and personalized service sets us apart. We will use content marketing and networking to attract clients. We seek £300,000 in funding to establish our office and marketing activities, promising steady growth and high returns.

BizConsult Solutions, based in Birmingham, offers consulting services in strategy and digital transformation. Revenue streams include hourly consulting fees, retainer agreements, and workshops. The company will be structured as an LTD.

• Business strategy consulting
• Digital transformation services
• Workshops and training sessions
• Retainer agreements for ongoing support

Market conditions and competition: The consulting market is competitive, with demand for digital transformation services rising. Competitors include large firms like McKinsey and Deloitte, but they primarily target larger enterprises. We focus on SMEs, offering affordable, high-quality services.

Target market: Our target market is SMEs in various sectors, seeking to modernize their operations and strategies.

The brand: BizConsult Solutions is innovative and client-focused. Our mission is to empower SMEs to thrive through strategic and technological advancements. We will communicate through a professional and approachable tone.

• Professional website with case studies and testimonials
• Content marketing (blogs, whitepapers)
• Webinars and online courses
• Networking events and industry conferences
• Email marketing and LinkedIn outreach

Our team includes Sarah Lee (CEO), with 10 years of consulting experience, and Michael O’Connor (CTO), an expert in digital transformation. We will hire additional consultants and administrative staff as needed. We will outsource web development and legal services.

We need an office in Birmingham, equipped with meeting rooms and collaborative workspaces. Essential tools include project management software and CRM systems. Required licenses include business operation permits.

• Office setup: £100,000
• Technology and software: £50,000

Startup finance: We seek £300,000 through a combination of bank loans and private investment.

Pricing: Consulting fees range from £100-£300 per hour, with retainer packages starting at £2,000 per month.

• Year 1: Revenue £500,000, Profit £100,000
• Year 2: Revenue £750,000, Profit £200,000
• Year 3: Revenue £1 million, Profit £350,000

Business plan writing tips

Writing a business plan can take some time and some areas of the plan will be easier to tackle than others. 

• Make initial notes every time you think of something and don’t worry if you can’t cover all points at the start.
• When you are ready to start to write the plan, make sure you use sections and these are in a logical order.
• It is important that your plan is simple, accurate and easy to follow if you are going to ask others to look at it.
• Try to avoid jargon or terms that only people in your type of industry will understand.

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How To Write a Business Plan in 9 Steps (2024)

Business plans aren’t just for entrepreneurs who need to secure funding—they can help you plan and evaluate new ideas or growth plans, too. Find out how to write a business plan and get the most out of the process in this comprehensive guide.

A great business plan can help you clarify your strategy, identify potential roadblocks, determine necessary resources, and evaluate the viability of your idea and growth plan before you start a business .

Not every successful business launches with a formal business plan, but many founders find value in taking time to step back, research their idea and the market they’re looking to enter, and understand the scope and the strategy behind their tactics. That’s where writing a business plan comes in.

Learn how to write a business plan with a step-by-step guide, get tips for getting the most of your plan, and see real business plan examples to inspire you.

What is a business plan?

A business plan is a strategic document that outlines a company's goals, strategies for achieving them, and the time frame for their achievement. It covers aspects like market analysis , financial projections, and organizational structure, serving as a roadmap for business growth and a tool to secure funding.

Often, financial institutions and investors need to see a business plan before funding any project. Even if you don’t plan to seek outside funding, a well-crafted plan becomes the guidance for your business as it scales.

How to write a business plan in 9 steps

• Draft an executive summary.
• Write a company description.
• Perform a market analysis.
• Outline the management and organization.
• List your products and services.
• Perform customer segmentation.
• Define a marketing plan.
• Provide a logistics and operations plan.
• Make a financial plan.

Few things are more intimidating than a blank page. Starting your business plan with a structured outline and key elements for what you’ll include in each section is the best first step you can take.

Since an outline is such an important step in the process of writing a business plan, we’ve put together a high-level overview to get you started (and avoid the terror of facing a blank page).

Once you have your business plan template in place, it’s time to fill it in. We’ve broken it down by section to help you build your plan step by step.

1. Draft an executive summary.

A good executive summary is one of the most crucial sections of your plan—it’s also the last section you should write.

The executive summary distills everything that follows and gives time-crunched reviewers (e.g., potential investors and lenders) a high-level overview of your business that persuades them to read further.

Again, it’s a summary, so highlight the key points you’ve uncovered while writing your plan. If you’re writing for your own planning purposes, you can skip the summary altogether—although you might want to give it a try anyway, just for practice.

An executive summary shouldn’t exceed one page. Admittedly, that space constraint can make squeezing in all of the salient information a bit stressful—but it’s not impossible. Your business plan’s executive summary should include:

• Business concept. What does your business do?
• Business goals and vision. What does your business want to do?
• Product description and differentiation. What do you sell, and why is it different?
• Target market. Who do you sell to?
• Marketing strategy. How do you plan on reaching your customers?
• Current financial state. What do you currently earn in revenue?
• Projected financial state. What do you foresee earning in revenue?
• The ask. How much money are you asking for?
• The team. Who’s involved in the business?

2. Write a company description.

This section of your business plan should answer two fundamental questions: who are you, and what do you plan to do? 

Answering these questions with a company description provides an introduction to why you’re in business, why you’re different, what you have going for you, and why you’re a good investment. 

For example, clean makeup brand Saie shares a letter from its founder on the company’s mission and why it exists.

Clarifying these details is still a useful exercise, even if you’re the only person who’s going to see them. It’s an opportunity to put to paper some of the more intangible facets of your business, like your principles, ideals, and cultural philosophies.

Here are some of the components you should include in your company description:

• Your business structure (Are you a sole proprietorship, general partnership, limited partnership, or incorporated company?)
• Your business model
• Your industry
• Your business’s vision, mission, and value proposition
• Background information on your business or its history
• Business objectives, both short and long term
• Your team, including key personnel and their salaries

Brand values and goals

To define your brand values , think about all the people your company is accountable to, including owners, employees, suppliers, customers, and investors. Now consider how you’d like to conduct business with each of them. As you make a list, your core values should start to emerge.

Your company description should also include both short- and long-term goals. Short-term goals, generally, should be achievable within the next year, while one to five years is a good window for long-term goals. Make sure your goal setting includes SMART goals : specific, measurable, attainable, realistic, and time-bound.

Vision and mission statements

Once you know your values, you can write a mission statement . Your statement should explain, in a convincing manner, why your business exists, and should be no longer than a single sentence.

Next, craft your vision statement : What impact do you envision your business having on the world once you’ve achieved your vision? Phrase this impact as an assertion—begin the statement with “We will” and you’ll be off to a great start. Your vision statement, unlike your mission statement, can be longer than a single sentence, but try to keep it to three at most. The best vision statements are concise.

3. Perform a market analysis.

No matter what type of business you start, it’s no exaggeration to say your market can make or break it. Choose the right market for your products—one with plenty of customers who understand and need your product—and you’ll have a head start on success. If you choose the wrong market, or the right market at the wrong time, you may find yourself struggling for each sale.

Market analysis is a key section of your business plan, whether or not you ever intend for anyone else to read it.

This is why market research and analysis is a key section of your business plan, whether or not you ever intend for anyone else to read it. It should include an overview of how big you estimate the market is for your products, an analysis of your business’s position in the market, and an overview of the competitive landscape. Thorough research supporting your conclusions is important both to persuade investors and to validate your own assumptions as you work through your plan.

Here is an example to illustrate how to approach this section:

How big is your potential market?

The potential market is an estimate of how many people need your product. While it’s exciting to imagine sky-high sales figures, you’ll want to use as much relevant independent data as possible to validate your estimated potential market.

Since this can be a daunting process, here are some general tips to help you begin your research:

• Understand your ideal customer profile. Look for government data about the size of your target market , learn where they live, what social channels they use, and their shopping habits.
• Research relevant industry trends and trajectory. Explore consumer trends and product trends in your industry by looking at Google Trends, trade publications, and influencers in the space.
• Make informed guesses. You’ll never have perfect, complete information about your total addressable market. Your goal is to base your estimates on as many verifiable data points as necessary.

Some sources to consult for market data include government statistics offices, industry associations, academic research, and respected news outlets covering your industry.

Read more: What is a Marketing Analysis? 3 Steps Every Business Should Follow

SWOT analysis

A SWOT analysis looks at your strengths, weaknesses, opportunities, and threats. What are the best things about your company? What are you not so good at? What market or industry shifts can you take advantage of and turn into opportunities? Are there external factors threatening your ability to succeed?

SWOT is often depicted in a grid or visual way. With this visual presentation, your reader can quickly see the factors that may impact your business and determine your competitive advantage in the market.

Competitive analysis

There are three overarching factors you can use to differentiate your business in the face of competition:

• Cost leadership. You have the capacity to maximize profits by offering lower prices than the majority of your competitors. Examples include companies like Mejuri and Endy .
• Differentiation. Your product or service offers something distinct from the current cost leaders in your industry and banks on standing out based on your uniqueness. Think of companies like Knix and QALO .
• Segmentation. You focus on a very specific, or niche, target market, and aim to build traction with a smaller audience before moving on to a broader market. Companies like TomboyX and Heyday Footwear are great examples of this strategy.

To understand which is the best fit, you’ll need to understand your business as well as the competitive landscape.

You’ll always have competition in the market, even with an innovative product, so it’s important to include a competitive overview in your business plan. If you’re entering an established market, include a list of a few companies you consider direct competitors and explain how you plan to differentiate your products and business from theirs.

For example, if you’re selling jewelry , your competitive differentiation could be that, unlike many high-end competitors, you donate a percentage of your profits to a notable charity or pass savings on to your customers.

If you’re entering a market where you can’t easily identify direct competitors, consider your indirect competitors—companies offering products that are substitutes for yours. For example, if you’re selling an innovative new piece of kitchen equipment, it’s too easy to say that because your product is new, you have no competition. Consider what your potential customers are doing to solve the same problems.

4. Outline the management and organization.

If you have a management team, use an organizational chart to show your company’s internal structure, including the roles, responsibilities, and relationships between people in your chart. Communicate how each person will contribute to the success of your startup.

5. List your products and services.

Your products or services will feature prominently in most areas of your business plan, but it’s important to provide a section that outlines key details about them for interested readers.

If you sell many items, you can include more general information on each of your product lines. If you only sell a few, provide additional information on each. For example, bag shop BAGGU sells a large selection of different types of bags, in addition to home goods and other accessories. Its business plan would list out those categories and key details about the products within each.

Describe new products you’ll launch in the near future and any intellectual property you own. Express how they’ll improve profitability. It’s also important to note where products are coming from—handmade crafts are sourced differently than trending products for a dropshipping business, for instance.

6. Perform customer segmentation.

To give a holistic overview of your ideal customer, describe a number of general and specific demographic characteristics. Customer segmentation often includes:

• Where they live.
• Their age range.
• Their level of education.
• Some common behavior patterns.
• How they spend their free time.
• Where they work.
• What technology they use.
• How much they earn.
• Where they’re commonly employed.
• Their values, beliefs, or opinions.

This information will vary based on what you’re selling, but you should be specific enough that it’s unquestionably clear who you’re trying to reach—and more importantly, why you’ve made the choices you have based on who your customers are and what they value.

For example, a college student has different interests, shopping habits, and pricing sensitivity than a 50-year-old executive at a Fortune 500 company. Your business plan and decisions would look very different based on which one was your ideal customer.

Put your customer data to work with Shopify’s customer segmentation

Shopify’s built-in segmentation tools help you discover insights about your customers, build segments as targeted as your marketing plans with filters based on your customers’ demographic and behavioral data, and drive sales with timely and personalized emails.

7. Define a marketing plan.

If you’re planning to invest heavily in Instagram marketing or TikTok ads , for example, it might make sense to include whether Instagram and TikTok are a leading platform for your audience—if it’s not, that might be a sign to rethink your marketing plan.

Market your business with Shopify’s customer marketing tools

Shopify has everything you need to capture more leads, send email campaigns, automate key marketing moments, segment your customers, and analyze your results. Plus, it’s all free for your first 10,000 emails sent per month.

Most marketing plans include information on four key subjects. How much detail you present on each will depend on both your business and your plan’s audience.

• Price:  How much do your products cost, and why have you made that decision?
• Product:  What are you selling and how do you differentiate it in the market?
• Promotion:  How will you get your products in front of your ideal customer?
• Place:  Where will you sell your products? On what channels and in which markets?

Promotion may be the bulk of your plan since you can more readily dive into tactical details, but the other three areas should be covered at least briefly—each is an important strategic lever in your marketing mix.

Here is an example of a marketing plan for a new business:

8. Provide a logistics and operations plan.

Logistics and operations are the workflows you’ll implement to make your business idea a reality. If you’re writing a business plan for your own planning purposes, this is still an important section to consider, even though you might not need to include the same level of detail as if you were seeking investment.

Cover all parts of your planned operations, including:

• Suppliers . Where do you get the raw materials you need for production, or where are your products produced?
• Production . Will you make, manufacture, wholesale , or dropship your products? How long does it take to produce your products and get them shipped to you? How will you handle a busy season or an unexpected spike in demand?
• Facilities . Where will you and any team members work? Do you plan to have a physical retail space? If yes, where?
• Equipment . What tools and technology do you require to be up and running? This includes everything from computers to lightbulbs and everything in between.
• Shipping and fulfillment. Will you be handling all the fulfillment tasks in-house, or will you use a third-party fulfillment partner?
• Inventory . How much will you keep on hand, and where will it be stored? How will you ship it to partners if required, and how will you approach inventory management ?

This section should signal to your reader that you’ve got a solid understanding of your supply chain and strong contingency plans in place to cover potential uncertainty. If your reader is you, it should give you a basis to make other important decisions, like how to price your products to cover your estimated costs, and at what point you plan to break even on your initial spending.

9. Make a financial plan.

The level of detail required in your financial plan will depend on your audience and goals, but typically you’ll want to include three major views of your financials: an income statement, a balance sheet, and a cash-flow statement. It also may be appropriate to include financial data and projections.

Here’s a spreadsheet template that includes everything you’ll need to create an income statement, balance sheet, and cash-flow statement, including some sample numbers. You can edit it to reflect projections if needed.

Let’s review the types of financial statements you’ll need.

Income statements

Your income statement is designed to give readers a look at your revenue sources and expenses over a given time period. With those two pieces of information, they can see the all-important bottom line or the profit or loss your business experienced during that time. If you haven’t launched your business yet, you can project future milestones of the same information.

Balance sheets

Your balance sheet offers a look at how much equity you have in your business. On one side, you list all your business assets (what you own), and on the other side, all your liabilities (what you owe). This provides a snapshot of your business’s shareholder equity, which is calculated as:

Assets - Liabilities = Equity

Cash flow statements

Your cash flow statement is similar to your income statement, with one important difference: it takes into account when revenues are collected and when expenses are paid.

When the cash you have coming in is greater than the cash you have going out, your cash flow is positive. When the opposite scenario is true, your cash flow is negative. Ideally, your cash flow statement will help you see when cash is low, when you might have a surplus, and where you might need to have a contingency plan to access funding to keep your business solvent .

It can be especially helpful to forecast your cash-flow statement to identify gaps or negative cash flow and adjust operations as required.

📚 Read more: What Is Cash Flow Management: Template and Examples

Why write a business plan?

Investors rely on business plans to evaluate the feasibility of a business before funding it, which is why business plans are commonly associated with getting a loan. 

Business plans also help owners identify areas of weakness before launching, potentially avoiding costly mistakes down the road. “Laying out a business plan helped us identify the ‘unknowns’ and made it easier to spot the gaps where we’d need help or, at the very least, to skill up ourselves,” says Jordan Barnett, owner of Kapow Meggings .

There are several other compelling reasons to consider writing a business plan, including:

• Strategic planning. Writing out your plan is an invaluable exercise for clarifying your ideas and can help you understand the scope of your business, as well as the amount of time, money, and resources you’ll need to get started.
• Evaluating ideas. If you’ve got multiple ideas in mind, a rough business plan for each can help you focus your time and energy on the ones with the highest chance of success.
• Research. To write a business plan, you’ll need to research your ideal customer and your competitors—information that will help you make more strategic decisions.
• Recruiting. Your business plan is one of the easiest ways to communicate your vision to potential new hires and can help build their confidence in the venture, especially if you’re in the early stages of growth.
• Partnerships. If you plan to collaborate with other brands , having a clear overview of your vision, your audience, and your business strategy will make it much easier for them to identify if your business is a good fit for theirs.
• Competitions. There are many business plan competitions offering prizes such as mentorships, grants, or investment capital. 

If you’re looking for a structured way to lay out your thoughts and ideas, and to share those ideas with people who can have a big impact on your success, a business plan is an excellent starting point.

Business plan types

Business plan types can span from one page to multiple pages with detailed graphs and reports. There’s no one way to create a business plan. The goal is to convey the most important information about your company for readers.

Common business plans we see include, but are not limited to, the following types:

Traditional business plans

These are the most common business plans. Traditional business plans take longer to write and can be dozens of pages long. Venture capitalist firms and lenders ask for this plan. Traditional business plans may not be necessary if you don’t plan to seek outside funding. That’s where the next type comes in.

Lean business plans

A lean business plan is a shorter version of a traditional business plan. It follows the same format, but only includes the most important information. Businesses use lean business plans to onboard new hires or modify existing plans for a specific target market.

Nonprofit business plans

A nonprofit business plan is for any entity that operates for public or social benefit. It covers everything you’ll find in a traditional business plan, plus a section describing the impact the company plans to make. For example, a speaker and headphone brand that aims to help people with hearing disabilities. Donors often request this plan.

📚 Read more: The Road to Success: Business Plan Examples to Inspire Your Own .

7 tips for creating a small business plan

There are a few best practices when it comes to writing a business plan. While your plan will be unique to your business and goals, keep these tips in mind as you write.

1. Know your audience.

When you know who will be reading your plan—even if you’re just writing it for yourself to clarify your ideas—you can tailor the language and level of detail to them. This can also help you make sure you’re including the most relevant information and figure out when to omit sections that aren’t as impactful.

2. Have a clear goal.

When creating a business plan, you’ll need to put in more work and deliver a more thorough plan if your goal is to secure funding for your business versus working through a plan for yourself or even your team.

3. Invest time in research.

Sections of your business plan will primarily be informed by your ideas and vision, but some of the most crucial information you’ll need requires research from independent sources. This is where you can invest time in understanding who you’re selling to, whether there’s demand for your products, and who else is selling similar products or services.

4. Keep it short and to the point.

No matter who you’re writing for, your business plan should be short and readable—generally no longer than 15 to 20 pages. If you do have additional documents you think may be valuable to your audience and your goals, consider adding them as appendices.

5. Keep the tone, style, and voice consistent.

This is best managed by having a single person write the plan or by allowing time for the plan to be properly edited before distributing it.

6. Use a business plan template.

You can also use a free business plan template to provide a skeleton for writing a plan. These often guide you through each section from financial projects to market research to mission statement ensuring you don’t miss a step.

7. Try business plan software.

Writing a business plan isn’t the easiest task for business owners. But it’s important for anyone starting or expanding a business. Fortunately, there are tools to help with everything from planning, drafting, creating graphics, syncing financial data, and more. Business plan software also has business plan templates and tutorials to help you finish a comprehensive plan in hours, rather than days.

A few curated picks include:

• LivePlan : the most affordable option with samples and templates
• Bizplan : tailored for startups seeking investment
• Go Small Biz : budget-friendly option with industry-specific templates

📚 Read more: 6 Best Business Plan Software to Help Write Your Future

Common mistakes when writing a business plan

Other articles on business plans would never tell you what we’re about to tell you: Your business plan can fail. The last thing you want is for time and effort to go down the drain. Avoid these common mistakes:

• Bad business idea. Sometimes your idea may be too risky for potential investors, too expensive to run, or there’s no market. Aim for small business ideas that require low startup costs.
• No exit strategy. If you don’t show an exit strategy, or a plan for investors to leave the business with maximum profits, you’ll have little luck finding capital.
• Unbalanced teams. A great product is the cost of entry to starting a business. But an incredible team will take it to the top. Unfortunately, many business owners overlook a balanced team. They focus on potential profits, without worrying about how it will be done. 
• Missing financial projections. Don’t leave out your balance sheet, cash flow statements, P&L statements, and income statements. Include your break-even analysis and return-on-investment calculations in your financial projections to create a successful business plan.
• Spelling and grammar errors. All the best organizations have an editor review their documents. If someone spots typos while reading your business plan, how can they believe you’ll run a successful company?

Prepare your business plan today

Whether you’re working on starting a new online business idea , building a retail storefront, growing your established business, or purchasing an existing business , you now understand how to write a business plan that suits your business’s goals and needs.

Feature illustration by Rachel Tunstall

Business plan FAQ

How do i write a business plan.

Learning how to write a business plan is simple if you use a business plan template or business plan software. Typically, a traditional business plan for every new business should have the following components :

• Executive summary
• Company description, including value proposition
• Market analysis and competitive analysis
• Management and organization
• Products and services
• Customer segmentation
• Marketing plan
• Logistics and operations
• Financial plan and financial projections

What is a good business plan?

A good business plan starts with a strong executive summary. It also adequately outlines idea feasibility, target market insights, and the competitive landscape. A business plan template can help businesses be sure to follow the typical format of traditional business plans which include financial projections, details about the management team, and other key elements that venture capital firms and potential investors want to see.

What are the 3 main purposes of a business plan?

The three main purposes of a business plan are: 

• To clarify your plans for growth
• To understand your financial needs
• To attract funding from investors or secure a business loan

What are the different types of business plans?

The types of business plans include startup, refocusing, internal, annual, strategic, feasibility, operations, growth, and scenario-based. Each type of business plan has a different purpose. Business plan formats include traditional, lean, and nonprofit. Find a business plan template for the type of plan you want to write.

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28 Jun 2024

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How to write a business plan

According to Barclays, only 47% of small businesses in the UK have a formal business plan in place that is written down or recorded.

And we understand, it's so tempting to jump straight into building a business; formally documenting it sounds exhausting and unnecessary. But before you jump in headfirst, you need to gain clarity around the market you're hoping to enter, pinpoint your target customers and figure out whether your product is viable.

And that's precisely what a business plan can help you do.

Without that information, you stand to waste time and money on a business idea that lacks real thought or structured direction. For example, did you know that the most common reasons for business failure in the UK include lack of funding, cash flow problems, and not having a structured business plan?

Please don't fall into the trap of jumping straight in; let's start planning.

So, firstly, what is a business plan?

A business plan is a formal document outlining your business idea — it’s a process that can help you work out whether your small business is viable, e.g. is there a market out there for your product? Can you adequately compete in the current marketplace? And what does your target market look like?

These are the kinds of questions you need answers to before starting your new business venture.

Do I need a business plan?

If you plan to set up a small business, let’s say an Etsy shop, then you might not think it’s necessary to create a business plan. But, if you’re planning on bringing partners on board, accessing financial help or approaching potential investors — then chances are, you’re going to need a comprehensive business plan. After all, who wants to invest in something that’s no more than an idea?

Even if you don’t plan to bring investors on board or apply for business grants, mapping out a path to business success can be helpful regardless of your business idea. Even if it’s just so you know what associated costs you can expect to fork out on.

Having a bona fide business plan can help you get your ducks in a row.

More reasons why you should consider writing a business plan:

• To understand the marketplace and for solidifying what makes your business different
• To understand your customer and their motivations for buying a product like yours
• An idea of how much money you can make and how you’re going to get there
• To identify and mitigate risks associated with your business idea
• To help build a roadmap for getting your business off the ground

The above are just a handful of reasons, but if you can identify with any of them, then chances are, you’ll need to create a business plan.

But we’ve got good news; writing a business plan might seem daunting, but we’re going to walk you through a simple layout template. So follow along and make notes as you go. Before you know it, you’ll be well on your way to making your business idea happen in real life.

Before we talk you through how you should structure your business plan, we’re sharing a few tips you should consider as you write it.

Keep it simple

When writing your business plan, you want to cut straight to the important bits, keeping it concise and trimming any flowery language or long sentences. You also need to be mindful of jargon or unexplained industry acronyms; remember, it has to be quick and easy to understand.

Keep it professional

You don’t want to write your business plan flippantly; it’s a document you should take seriously. Lay out your document with headings, numbered pages, and a cover page. You want whoever reads it to be able to find what they’re looking for.

Keep it error-free

When it comes to financial projections and market analysis, you need to make sure your information is spot on, so we’d advise giving the plan a thorough proofread and fact check. Then, read and re-read to ensure it’s up to scratch — because it might not just be you reading it, it could be your future business partner or passed around potential investors.

How to layout a business plan

Now the all-important part, actually creating a business plan. We’ve broken down the contents of a business plan into six sections:

• Executive summary
• Goals, vision and mission statement
• Market research
• Sales and marketing plan
• Financial projections
• A roadmap of your business milestones

1. Executive summary

You should be able to hand your business plan to anyone, have them read the executive summary, and they should grasp a pretty good idea of your business plan. It should inform the reader what they can expect from your business plan and, if it’s written well, it can pique their interest from the start.

In your executive summary, you’ll want to include your business’ purpose, your vision for the company, your goals and objectives. You’ll need to briefly introduce the product or service you’re hoping to sell and why you think it’s a viable business proposition.

Basically, it’s a watered-down version of your entire business plan, so it can be a good idea to write this section last.

2. Goals, vision and mission statement

In this section, you should start by briefly describing your mission statement. According to a retired professor of strategy and governance at McMaster University, Chris Bart , three key components make an impactful mission statement :

• Your target audience
• The product/service you’re selling (and how it solves a problem)
• Your business USPs (why would people buy from you over competitors?)

You should also set out your long-term and short-term vision for your business — what does an ideal yet realistic future look like for you? What goals are you setting for yourself in the first few years? Why are these goals important to you?

3. Market research

Before you jump into any new business venture, you need to see if there’s actually a market for it, and that’s where market research comes in.

In your market research section, you’ll want to demonstrate that you know the market you’re targeting and what they look like. What age bracket do they belong to? What’s their income? Why would they purchase your product?

Understanding your target market is crucial to a successful business; without this knowledge, you’re building a business on shaky foundations. There are plenty of data sources to help you explore data trends and demographics, including Statista , ONS Census , and Gov.uk .

You’ll also need to include competitor research to show you’ve thought about what brands are already out there and how you see yourself slotting into the market. To conduct competitor research, you can undertake a PEST analysis to highlight big external factors that could affect your industry or your business directly: political, economic, social and tech. And you can also perform a SWOT analysis, which helps you determine strengths and weaknesses (internal) and opportunities and threats (external).

These frameworks are here to help guide you through your market research.

4. Sales and marketing plan

So now that you’ve identified your target market, how are you going to spread the word about your business? A solid sales and marketing plan is vital. It’s easy to waste budget trialling new channels, so take your time and understand which sales channels you’re going to focus on and think about the marketing tactics you’re going to use to capture and convert customers.

When firming up your marketing plan, it’s good to use the 4 Ps of marketing as a guideline. P rice, P lace, P roduct and P romotion. All four overlap each other.

You need to outline how you’re going to price your product and why, where you’re going to find these target markets, the product and its USP and the problem or need it addresses, and finally, promotion. How are you going to promote your product to that target market?

5. Financial projections

Without financial projections, investors or partners can’t come on board; it’s too risky. In your business plan, you need to layout your cash flow projections and discuss any capital you need to raise.

As a startup business , you haven’t got past sales to make accurate predictions, which can be tricky. But that doesn’t mean you can’t use your market research to inform future projections.

You should know about the state of the industry you’re looking to compete in; you can analyse industry trends and use your competitor analysis to get a crystal clear picture of pricing strategies and gaps your product can fill.

Break down your financial projections by monthly sales — when you’re into your second year, you can start breaking them down by quarter. Include how many units you sold, the price you sold them at, and predicted monthly sales.

You should also include cash flow projections. Again, difficult when you’re just starting out. But in your business plan, you need to show that you’ve thought about any revenue lags. For example, if you rely on invoice payments, take into account it could take your client between 30 and 120 days to pay the full invoiced amount. Make sure you’re aware of these pockets where expenditure will come out of your account before you’ve been paid.

6. A roadmap of your business milestones

Once you’ve researched and filled in each section of your business plan, it’s helpful to write a timeline of when you expect to complete certain milestones. For example, milestones could include deciding which structure your company will take, registering your business, and building a website, setting up marketing channels and designing and printing product packaging.

This section can be used to summarise all the milestones you want to achieve and by when keeping you focused and pushing the business forward and into fruition.

Where can I get a free business plan template?

Sometimes, when faced with writing such an important document, it can be tricky to know where to start. Luckily, there are plenty of free business plan templates available online . We’ve included links to a handful below:

• Barclays free business template [PDF]
• The Prince’s Trust free business template
• HubSpot free business template

Before you go

Hopefully, you’ve got an idea of how to lay out your business plan from scratch. Take it from us, writing a business plan saves time and money down the road; it’s best to put the leg work in now.

If you’re looking to access a startup loan to help you grow, we can help you. We’re brokers, which means our loan comparison service is 100% free for you to use. Apply in minutes and see funds in as little as 48 hours. Read more about startup loans .

About the author

Money Writer

Helen has over nine years of experience in content writing and writes financial content for us here at Capalona.

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How to Write a Business Plan: Step-by-Step Guide + Examples

Noah Parsons

24 min. read

Updated May 7, 2024

Writing a business plan doesn’t have to be complicated. 

In this step-by-step guide, you’ll learn how to write a business plan that’s detailed enough to impress bankers and potential investors, while giving you the tools to start, run, and grow a successful business.

• The basics of business planning

If you’re reading this guide, then you already know why you need a business plan . 

You understand that planning helps you: 

• Raise money
• Grow strategically
• Keep your business on the right track 

As you start to write your plan, it’s useful to zoom out and remember what a business plan is .

At its core, a business plan is an overview of the products and services you sell, and the customers that you sell to. It explains your business strategy: how you’re going to build and grow your business, what your marketing strategy is, and who your competitors are.

Most business plans also include financial forecasts for the future. These set sales goals, budget for expenses, and predict profits and cash flow. 

A good business plan is much more than just a document that you write once and forget about. It’s also a guide that helps you outline and achieve your goals. 

After completing your plan, you can use it as a management tool to track your progress toward your goals. Updating and adjusting your forecasts and budgets as you go is one of the most important steps you can take to run a healthier, smarter business. 

We’ll dive into how to use your plan later in this article.

There are many different types of plans , but we’ll go over the most common type here, which includes everything you need for an investor-ready plan. However, if you’re just starting out and are looking for something simpler—I recommend starting with a one-page business plan . It’s faster and easier to create. 

It’s also the perfect place to start if you’re just figuring out your idea, or need a simple strategic plan to use inside your business.

Dig deeper : How to write a one-page business plan

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• What to include in your business plan

Executive summary

The executive summary is an overview of your business and your plans. It comes first in your plan and is ideally just one to two pages. Most people write it last because it’s a summary of the complete business plan.

Ideally, the executive summary can act as a stand-alone document that covers the highlights of your detailed plan. 

In fact, it’s common for investors to ask only for the executive summary when evaluating your business. If they like what they see in the executive summary, they’ll often follow up with a request for a complete plan, a pitch presentation , or more in-depth financial forecasts .

Your executive summary should include:

• A summary of the problem you are solving
• A description of your product or service
• An overview of your target market
• A brief description of your team
• A summary of your financials
• Your funding requirements (if you are raising money)

Dig Deeper: How to write an effective executive summary

Products and services description

This is where you describe exactly what you’re selling, and how it solves a problem for your target market. The best way to organize this part of your plan is to start by describing the problem that exists for your customers. After that, you can describe how you plan to solve that problem with your product or service. 

This is usually called a problem and solution statement .

To truly showcase the value of your products and services, you need to craft a compelling narrative around your offerings. How will your product or service transform your customers’ lives or jobs? A strong narrative will draw in your readers.

This is also the part of the business plan to discuss any competitive advantages you may have, like specific intellectual property or patents that protect your product. If you have any initial sales, contracts, or other evidence that your product or service is likely to sell, include that information as well. It will show that your idea has traction , which can help convince readers that your plan has a high chance of success.

Market analysis

Your target market is a description of the type of people that you plan to sell to. You might even have multiple target markets, depending on your business. 

A market analysis is the part of your plan where you bring together all of the information you know about your target market. Basically, it’s a thorough description of who your customers are and why they need what you’re selling. You’ll also include information about the growth of your market and your industry .

Try to be as specific as possible when you describe your market. 

Include information such as age, income level, and location—these are what’s called “demographics.” If you can, also describe your market’s interests and habits as they relate to your business—these are “psychographics.” 

Related: Target market examples

Essentially, you want to include any knowledge you have about your customers that is relevant to how your product or service is right for them. With a solid target market, it will be easier to create a sales and marketing plan that will reach your customers. That’s because you know who they are, what they like to do, and the best ways to reach them.

Next, provide any additional information you have about your market. 

What is the size of your market ? Is the market growing or shrinking? Ideally, you’ll want to demonstrate that your market is growing over time, and also explain how your business is positioned to take advantage of any expected changes in your industry.

Dig Deeper: Learn how to write a market analysis

Competitive analysis

Part of defining your business opportunity is determining what your competitive advantage is. To do this effectively, you need to know as much about your competitors as your target customers. 

Every business has some form of competition. If you don’t think you have competitors, then explore what alternatives there are in the market for your product or service. 

For example: In the early years of cars, their main competition was horses. For social media, the early competition was reading books, watching TV, and talking on the phone.

A good competitive analysis fully lays out the competitive landscape and then explains how your business is different. Maybe your products are better made, or cheaper, or your customer service is superior. Maybe your competitive advantage is your location – a wide variety of factors can ultimately give you an advantage.

Dig Deeper: How to write a competitive analysis for your business plan

Marketing and sales plan

The marketing and sales plan covers how you will position your product or service in the market, the marketing channels and messaging you will use, and your sales tactics. 

The best place to start with a marketing plan is with a positioning statement . 

This explains how your business fits into the overall market, and how you will explain the advantages of your product or service to customers. You’ll use the information from your competitive analysis to help you with your positioning. 

For example: You might position your company as the premium, most expensive but the highest quality option in the market. Or your positioning might focus on being locally owned and that shoppers support the local economy by buying your products.

Once you understand your positioning, you’ll bring this together with the information about your target market to create your marketing strategy . 

This is how you plan to communicate your message to potential customers. Depending on who your customers are and how they purchase products like yours, you might use many different strategies, from social media advertising to creating a podcast. Your marketing plan is all about how your customers discover who you are and why they should consider your products and services. 

While your marketing plan is about reaching your customers—your sales plan will describe the actual sales process once a customer has decided that they’re interested in what you have to offer. 

If your business requires salespeople and a long sales process, describe that in this section. If your customers can “self-serve” and just make purchases quickly on your website, describe that process. 

A good sales plan picks up where your marketing plan leaves off. The marketing plan brings customers in the door and the sales plan is how you close the deal.

Together, these specific plans paint a picture of how you will connect with your target audience, and how you will turn them into paying customers.

Dig deeper: What to include in your sales and marketing plan

Business operations

The operations section describes the necessary requirements for your business to run smoothly. It’s where you talk about how your business works and what day-to-day operations look like. 

Depending on how your business is structured, your operations plan may include elements of the business like:

• Supply chain management
• Manufacturing processes
• Equipment and technology
• Distribution

Some businesses distribute their products and reach their customers through large retailers like Amazon.com, Walmart, Target, and grocery store chains. 

These businesses should review how this part of their business works. The plan should discuss the logistics and costs of getting products onto store shelves and any potential hurdles the business may have to overcome.

If your business is much simpler than this, that’s OK. This section of your business plan can be either extremely short or more detailed, depending on the type of business you are building.

For businesses selling services, such as physical therapy or online software, you can use this section to describe the technology you’ll leverage, what goes into your service, and who you will partner with to deliver your services.

Dig Deeper: Learn how to write the operations chapter of your plan

Key milestones and metrics

Although it’s not required to complete your business plan, mapping out key business milestones and the metrics can be incredibly useful for measuring your success.

Good milestones clearly lay out the parameters of the task and set expectations for their execution. You’ll want to include:

• A description of each task
• The proposed due date
• Who is responsible for each task

If you have a budget, you can include projected costs to hit each milestone. You don’t need extensive project planning in this section—just list key milestones you want to hit and when you plan to hit them. This is your overall business roadmap. 

Possible milestones might be:

• Website launch date
• Store or office opening date
• First significant sales
• Break even date
• Business licenses and approvals

You should also discuss the key numbers you will track to determine your success. Some common metrics worth tracking include:

• Conversion rates
• Customer acquisition costs
• Profit per customer
• Repeat purchases

It’s perfectly fine to start with just a few metrics and grow the number you are tracking over time. You also may find that some metrics simply aren’t relevant to your business and can narrow down what you’re tracking.

Dig Deeper: How to use milestones in your business plan

Organization and management team

Investors don’t just look for great ideas—they want to find great teams. Use this chapter to describe your current team and who you need to hire . You should also provide a quick overview of your location and history if you’re already up and running.

Briefly highlight the relevant experiences of each key team member in the company. It’s important to make the case for why yours is the right team to turn an idea into a reality. 

Do they have the right industry experience and background? Have members of the team had entrepreneurial successes before? 

If you still need to hire key team members, that’s OK. Just note those gaps in this section.

Your company overview should also include a summary of your company’s current business structure . The most common business structures include:

• Sole proprietor
• Partnership

Be sure to provide an overview of how the business is owned as well. Does each business partner own an equal portion of the business? How is ownership divided? 

Potential lenders and investors will want to know the structure of the business before they will consider a loan or investment.

Dig Deeper: How to write about your company structure and team

Financial plan

Last, but certainly not least, is your financial plan chapter. 

Entrepreneurs often find this section the most daunting. But, business financials for most startups are less complicated than you think, and a business degree is certainly not required to build a solid financial forecast. 

A typical financial forecast in a business plan includes the following:

• Sales forecast : An estimate of the sales expected over a given period. You’ll break down your forecast into the key revenue streams that you expect to have.
• Expense budget : Your planned spending such as personnel costs , marketing expenses, and taxes.
• Profit & Loss : Brings together your sales and expenses and helps you calculate planned profits.
• Cash Flow : Shows how cash moves into and out of your business. It can predict how much cash you’ll have on hand at any given point in the future.
• Balance Sheet : A list of the assets, liabilities, and equity in your company. In short, it provides an overview of the financial health of your business. 

A strong business plan will include a description of assumptions about the future, and potential risks that could impact the financial plan. Including those will be especially important if you’re writing a business plan to pursue a loan or other investment.

Dig Deeper: How to create financial forecasts and budgets

This is the place for additional data, charts, or other information that supports your plan.

Including an appendix can significantly enhance the credibility of your plan by showing readers that you’ve thoroughly considered the details of your business idea, and are backing your ideas up with solid data.

Just remember that the information in the appendix is meant to be supplementary. Your business plan should stand on its own, even if the reader skips this section.

Dig Deeper : What to include in your business plan appendix

Optional: Business plan cover page

Adding a business plan cover page can make your plan, and by extension your business, seem more professional in the eyes of potential investors, lenders, and partners. It serves as the introduction to your document and provides necessary contact information for stakeholders to reference.

Your cover page should be simple and include:

• Company logo
• Business name
• Value proposition (optional)
• Business plan title
• Completion and/or update date
• Address and contact information
• Confidentiality statement

Just remember, the cover page is optional. If you decide to include it, keep it very simple and only spend a short amount of time putting it together.

Dig Deeper: How to create a business plan cover page

How to use AI to help write your business plan

Generative AI tools such as ChatGPT can speed up the business plan writing process and help you think through concepts like market segmentation and competition. These tools are especially useful for taking ideas that you provide and converting them into polished text for your business plan.

The best way to use AI for your business plan is to leverage it as a collaborator , not a replacement for human creative thinking and ingenuity. 

AI can come up with lots of ideas and act as a brainstorming partner. It’s up to you to filter through those ideas and figure out which ones are realistic enough to resonate with your customers. 

There are pros and cons of using AI to help with your business plan . So, spend some time understanding how it can be most helpful before just outsourcing the job to AI.

Learn more: 10 AI prompts you need to write a business plan

• Writing tips and strategies

To help streamline the business plan writing process, here are a few tips and key questions to answer to make sure you get the most out of your plan and avoid common mistakes .  

Determine why you are writing a business plan

Knowing why you are writing a business plan will determine your approach to your planning project. 

For example: If you are writing a business plan for yourself, or just to use inside your own business , you can probably skip the section about your team and organizational structure. 

If you’re raising money, you’ll want to spend more time explaining why you’re looking to raise the funds and exactly how you will use them.

Regardless of how you intend to use your business plan , think about why you are writing and what you’re trying to get out of the process before you begin.

Keep things concise

Probably the most important tip is to keep your business plan short and simple. There are no prizes for long business plans . The longer your plan is, the less likely people are to read it. 

So focus on trimming things down to the essentials your readers need to know. Skip the extended, wordy descriptions and instead focus on creating a plan that is easy to read —using bullets and short sentences whenever possible.

Have someone review your business plan

Writing a business plan in a vacuum is never a good idea. Sometimes it’s helpful to zoom out and check if your plan makes sense to someone else. You also want to make sure that it’s easy to read and understand.

Don’t wait until your plan is “done” to get a second look. Start sharing your plan early, and find out from readers what questions your plan leaves unanswered. This early review cycle will help you spot shortcomings in your plan and address them quickly, rather than finding out about them right before you present your plan to a lender or investor.

If you need a more detailed review, you may want to explore hiring a professional plan writer to thoroughly examine it.

Use a free business plan template and business plan examples to get started

Knowing what information to include in a business plan is sometimes not quite enough. If you’re struggling to get started or need additional guidance, it may be worth using a business plan template. 

There are plenty of great options available (we’ve rounded up our 8 favorites to streamline your search).

But, if you’re looking for a free downloadable business plan template , you can get one right now; download the template used by more than 1 million businesses. 

Or, if you just want to see what a completed business plan looks like, check out our library of over 550 free business plan examples . 

We even have a growing list of industry business planning guides with tips for what to focus on depending on your business type.

Common pitfalls and how to avoid them

It’s easy to make mistakes when you’re writing your business plan. Some entrepreneurs get sucked into the writing and research process, and don’t focus enough on actually getting their business started. 

Here are a few common mistakes and how to avoid them:

Not talking to your customers : This is one of the most common mistakes. It’s easy to assume that your product or service is something that people want. Before you invest too much in your business and too much in the planning process, make sure you talk to your prospective customers and have a good understanding of their needs.

• Overly optimistic sales and profit forecasts: By nature, entrepreneurs are optimistic about the future. But it’s good to temper that optimism a little when you’re planning, and make sure your forecasts are grounded in reality. 
• Spending too much time planning: Yes, planning is crucial. But you also need to get out and talk to customers, build prototypes of your product and figure out if there’s a market for your idea. Make sure to balance planning with building.
• Not revising the plan: Planning is useful, but nothing ever goes exactly as planned. As you learn more about what’s working and what’s not—revise your plan, your budgets, and your revenue forecast. Doing so will provide a more realistic picture of where your business is going, and what your financial needs will be moving forward.
• Not using the plan to manage your business: A good business plan is a management tool. Don’t just write it and put it on the shelf to collect dust – use it to track your progress and help you reach your goals.
• Presenting your business plan

The planning process forces you to think through every aspect of your business and answer questions that you may not have thought of. That’s the real benefit of writing a business plan – the knowledge you gain about your business that you may not have been able to discover otherwise.

With all of this knowledge, you’re well prepared to convert your business plan into a pitch presentation to present your ideas. 

A pitch presentation is a summary of your plan, just hitting the highlights and key points. It’s the best way to present your business plan to investors and team members.

Dig Deeper: Learn what key slides should be included in your pitch deck

Use your business plan to manage your business

One of the biggest benefits of planning is that it gives you a tool to manage your business better. With a revenue forecast, expense budget, and projected cash flow, you know your targets and where you are headed.

And yet, nothing ever goes exactly as planned – it’s the nature of business.

That’s where using your plan as a management tool comes in. The key to leveraging it for your business is to review it periodically and compare your forecasts and projections to your actual results.

Start by setting up a regular time to review the plan – a monthly review is a good starting point. During this review, answer questions like:

• Did you meet your sales goals?
• Is spending following your budget?
• Has anything gone differently than what you expected?

Now that you see whether you’re meeting your goals or are off track, you can make adjustments and set new targets. 

Maybe you’re exceeding your sales goals and should set new, more aggressive goals. In that case, maybe you should also explore more spending or hiring more employees. 

Or maybe expenses are rising faster than you projected. If that’s the case, you would need to look at where you can cut costs.

A plan, and a method for comparing your plan to your actual results , is the tool you need to steer your business toward success.

Learn More: How to run a regular plan review

Free business plan templates and examples

Kickstart your business plan writing with one of our free business plan templates or recommended tools.

Free business plan template

Download a free SBA-approved business plan template built for small businesses and startups.

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One-page plan template

Download a free one-page plan template to write a useful business plan in as little as 30-minutes.

Sample business plan library

Explore over 500 real-world business plan examples from a wide variety of industries.

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How to write a business plan FAQ

What is a business plan?

A document that describes your business , the products and services you sell, and the customers that you sell to. It explains your business strategy, how you’re going to build and grow your business, what your marketing strategy is, and who your competitors are.

What are the benefits of a business plan?

A business plan helps you understand where you want to go with your business and what it will take to get there. It reduces your overall risk, helps you uncover your business’s potential, attracts investors, and identifies areas for growth.

Having a business plan ultimately makes you more confident as a business owner and more likely to succeed for a longer period of time.

What are the 7 steps of a business plan?

The seven steps to writing a business plan include:

• Write a brief executive summary
• Describe your products and services.
• Conduct market research and compile data into a cohesive market analysis.
• Describe your marketing and sales strategy.
• Outline your organizational structure and management team.
• Develop financial projections for sales, revenue, and cash flow.
• Add any additional documents to your appendix.

What are the 5 most common business plan mistakes?

There are plenty of mistakes that can be made when writing a business plan. However, these are the 5 most common that you should do your best to avoid:

• 1. Not taking the planning process seriously.
• Having unrealistic financial projections or incomplete financial information.
• Inconsistent information or simple mistakes.
• Failing to establish a sound business model.
• Not having a defined purpose for your business plan.

What questions should be answered in a business plan?

Writing a business plan is all about asking yourself questions about your business and being able to answer them through the planning process. You’ll likely be asking dozens and dozens of questions for each section of your plan.

However, these are the key questions you should ask and answer with your business plan:

• How will your business make money?
• Is there a need for your product or service?
• Who are your customers?
• How are you different from the competition?
• How will you reach your customers?
• How will you measure success?

How long should a business plan be?

The length of your business plan fully depends on what you intend to do with it. From the SBA and traditional lender point of view, a business plan needs to be whatever length necessary to fully explain your business. This means that you prove the viability of your business, show that you understand the market, and have a detailed strategy in place.

If you intend to use your business plan for internal management purposes, you don’t necessarily need a full 25-50 page business plan. Instead, you can start with a one-page plan to get all of the necessary information in place.

What are the different types of business plans?

While all business plans cover similar categories, the style and function fully depend on how you intend to use your plan. Here are a few common business plan types worth considering.

Traditional business plan: The tried-and-true traditional business plan is a formal document meant to be used when applying for funding or pitching to investors. This type of business plan follows the outline above and can be anywhere from 10-50 pages depending on the amount of detail included, the complexity of your business, and what you include in your appendix.

Business model canvas: The business model canvas is a one-page template designed to demystify the business planning process. It removes the need for a traditional, copy-heavy business plan, in favor of a single-page outline that can help you and outside parties better explore your business idea.

One-page business plan: This format is a simplified version of the traditional plan that focuses on the core aspects of your business. You’ll typically stick with bullet points and single sentences. It’s most useful for those exploring ideas, needing to validate their business model, or who need an internal plan to help them run and manage their business.

Lean Plan: The Lean Plan is less of a specific document type and more of a methodology. It takes the simplicity and styling of the one-page business plan and turns it into a process for you to continuously plan, test, review, refine, and take action based on performance. It’s faster, keeps your plan concise, and ensures that your plan is always up-to-date.

What’s the difference between a business plan and a strategic plan?

A business plan covers the “who” and “what” of your business. It explains what your business is doing right now and how it functions. The strategic plan explores long-term goals and explains “how” the business will get there. It encourages you to look more intently toward the future and how you will achieve your vision.

However, when approached correctly, your business plan can actually function as a strategic plan as well. If kept lean, you can define your business, outline strategic steps, and track ongoing operations all with a single plan.

Noah is the COO at Palo Alto Software, makers of the online business plan app LivePlan. He started his career at Yahoo! and then helped start the user review site Epinions.com. From there he started a software distribution business in the UK before coming to Palo Alto Software to run the marketing and product teams.

Table of Contents

• Use AI to help write your plan
• Common planning mistakes
• Manage with your business plan
• Templates and examples

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• Business insights

Writing a business plan

Your guide to a successful business plan

A good business plan defines what you want to achieve and how you intend to achieve it. Our guide could help you write yours.

Define your business

It’s important that you define what type of small business you are so that everyone you work with understands what you’re trying to achieve. A comprehensive business plan is the best way to go about defining your business.

Your plan should include:

• What your business will do
• The products or services it will provide
• How customers will access your products or services (eg in a shop, online or by phone)
• Your approach to pricing
• Your long and short-term objectives – including a series of benchmarks if possible that you can check your progress against

Know your customers

Make sure you know as much as possible about who will be buying from you. For example, if you’re marketing to consumers, here are some questions you might want to ask. Knowing the answers will help you promote your business much more effectively:

• How old are they?
• What do they do for a living?
• What are their lifestyles like?
• Do they already buy the product or service?
• Why will they buy from you and no one else?
• How will you tell them about your business?

Naming your business

The name you choose for your business should reflect the image you want to project to your market. Pick one that’s easy to pronounce and remember, but do some research first. Make sure your chosen name is not already in use, it’s available as a web address and will work on your business stationery. You may also consider looking into the name’s meaning in different countries and languages – especially if you see yourself expanding internationally in the future.

If you have the facilities, you could test various names to see how people from your proposed customer base react. There are companies that provide this service, or you could do it informally by asking friends and family.

Taking on staff

If you take on employees – even part-time – you’ll need to familiarise yourself with employment law and know how to get the best out of your staff. There are plenty of guides that will help you to understand the law and make decisions to suit your business, such as the number of employees you need, what you should offer them and if they will be contractors or permanent. Here are some key things to consider:

• What are my responsibilities and what do I need to provide them with?
• How will I make sure they are properly managed and trained?
• What should I pay them and does it match with the pay offered for similar roles in the area?
• Does it comply with the National Minimum Wage and National Living Wage?
• How will they benefit my business and help me to achieve my goals?

Writing it all down

When you write your business plan, remember to be clear, realistic and concise. It’s important to consider that someone reading it in the future might not be familiar with jargon or more technical terms, so writing it in plain English is advisable. You should use research and, if possible, evidence, to support your conclusions and include an action plan. Nothing needs to be set in stone, however; business plans are dynamic documents – meaning that you should adjust your plan as your business develops. See our in-depth guide to writing a business plan  [PDF, 6.2MB]

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Important information

HELPING SMALL BUSINESSES SUCCEED

MORE DONUTS:

What do you need to know about starting a business?

• Start up business ideas
• Set up a business
• Skills and wellbeing
• Business planning
• Financing a business
• Tax and National Insurance
• Business law
• Sales and marketing
• Business premises
• Business IT
• Grow your business
• Types of business
• Testing business ideas
• Product development
• Is running a business really for you?
• Start up stories
• Registering as a sole trader
• Setting up a limited company
• Business names
• Buy a franchise
• Buying a business
• Starting an online business
• Setting up a social enterprise
• Small business support

Protect your wellbeing from the pressures of starting and running a business and develop key business skills.

• Dealing with stress
• Manage your time
• Self-confidence
• Write a business plan
• Business strategy
• Start up costs
• Start up funding
• Setting prices
• How to work out tax and NI
• Accounting and bookkeeping
• Licences and registration
• Protecting intellectual property
• Insurance for business
• Workplace health, safety and environmental rules
• Looking after your customers
• Promote your business
• Your marketing strategy
• Sales techniques
• Research your market
• Creating and optimising a website
• Commercial premises
• Premises security
• People management
• Recruitment, contracts, discipline and grievance
• Employment rights
• Hiring employees
• Buying IT for your new business
• Basic IT security
• Preparing for business growth
• How to scale up your business
• Funding business growth
• Start exporting
• Personal development

Essential guide to writing a business plan

Your business plan outlines what your business does and what you are trying to achieve. It explains what the market opportunity is, what makes your business special and how you will make it a success.

Writing a business plan helps you:

• check that your business idea makes sense
• plan your sales, marketing and business operations
• identify potential problems and how to overcome them
• set out your objectives and the financial return you expect
• work out what financing you need
• convince other people to back your business

Why write a business plan?

How to write a business plan

Your business and products

Your market and competition

Your marketing and sales

Management and personnel structure

Your business operations

Financial performance

SWOT analysis

1. Why write a business plan?

Writing a business plan helps you think about what you are doing.

• The plan sets out your strategy and action plan for the next one to three years, or sometimes longer.
• As part of the process, you set concrete objectives and plan how you will achieve them.
• Writing a business plan helps you focus and develop your ideas. Priorities are identified. Non-priorities are dropped, saving precious time.
• Putting the plan in writing makes it easier to spot any gaps where you have more work to do.
• Once written, the plan is a benchmark for the performance of the business.
• By involving your employees in the planning process, you can build a successful, committed team.

You may need a business plan to explain your idea to other people

• A business plan is essential if you are raising finance from a bank or outside investors.
• A good plan can help you attract new senior management, or business partners such as distributors and agents.
• You should tailor your plan to the target audience. For example, you may want the plan to 'sell' the business to your bank manager or investors.
• Ask the intended recipient if there are any specific issues they want the plan to address or a template you should follow.

2. How to write a business plan

Base your business plan on accurate, detailed information where possible. But do not include all the detail in the plan. Leave the detail for operational or marketing plans.

Keep the plan short

• Focus on what the reader needs to know.
• Cut out any waffle.
• Make sure there are no spelling mistakes.
• Detailed business plans are often quickly shelved because they are difficult to use on an ongoing basis.

Include any detailed information you need in an appendix

For example, you might want:

• detailed financial forecasts and assumptions
• market research data that backs up what you say
• CVs of key personnel (essential if you are seeking outside funding)
• product literature or technical specifications

Base your business plan on reality, or it may be counterproductive

• Over-optimistic forecasts can lead to increased overheads followed by a cash flow crisis and drastic cost-cutting.
• Be realistic, even if you are selling the business to a third party. Financiers, business partners and employees will see through over-optimistic plans that ignore weaknesses or threats. Management credibility can be damaged.

Make the plan professional

• Put a cover on it.
• Include a contents page, with page and section numbering.
• Start with an executive summary. This summarises the key points, starting with the purpose of the business plan.
• Use charts, if helpful.

Even if the plan is for internal use only, write it as if it were aimed at an outsider

• Include company or product literature as an appendix.
• Give details about the history and current status of the business.

Review your business plan

• Read through the plan from your target reader's point of view. For example, try to imagine the impression the plan will make on your bank manager.
• Check the plan is realistic. Include evidence to back up what you say (perhaps in the appendix) or provide evidence if needed.
• Make sure you assess the risks. What might go wrong (eg if your main supplier closes down or you lose a key customer) and what would you do about it?
• Concentrate on the executive summary. People often make provisional judgements based on this. Only then do they read the rest of the plan to confirm their decision.
• Show the plan to friends, business peers and expert advisers for comments. Which parts did they not understand or find unconvincing?

3. Your business and products

Explain the history of the business.

• When did it start trading and what progress has it made to date?
• If the business is just starting up, what is your personal industry background and what progress towards launching the business has been made?
• Who owned the business originally?
• What is the current ownership structure?

Describe what your product or service is, avoiding technical jargon if possible

• In general, what makes your product or service different ?
• What benefits does it offer? What are its disadvantages and how will you address these?
• What changes and improvements are you planning?

Explain any key features of the industry

• For example, any special regulations, whether the industry is dominated by a few large companies or any major changes in technology.

4. Your market and competition

Describe the market in which you sell.

• Highlight the segments of the market in which you compete. What are the key characteristics of customers in each segment and what influences their purchasing decisions?
• How large is each market segment? What is your market share?
• What are the important trends, such as market growth or changing tastes? Explain the reasons behind the trend.
• What is the outlook for each important market segment?

Describe the nature and distribution of existing customers

• Do they fit the profile of the chosen market segment? If not, why not?
• Are sales largely made to one or two major customers?
• If you are a new start-up, do you have any confirmed orders and who are your best prospects?

Outline the main competition

• What are the competing products or services ? Who supplies them?
• What are their advantages and disadvantages compared to you? For example, price, quality, distribution.
• Why will customers buy your product or service instead? How will your competitors react to losing business and how you will respond?
• Never openly criticise or underestimate competitors.

5. Your marketing and sales strategy

Where do you position your product or service in the market.

• Is it high quality and high price?
• Is it marketed as a specialist product due to a particular feature?
• What unique benefits does it offer customers? For example, product reliability or customer service.
• Which of these benefits are you going to highlight?

What is your pricing policy?

• Explain how price-sensitive your customers are.
• Look at each product or market segment in turn. Identify where you make your profits and where it may be possible to increase margins or sales or cut costs. Set your pricing accordingly.

How do you promote your product or service?

• Each market segment will have one or two promotional methods that work best. For example, social media marketing, direct marketing, advertising or PR.
• If you are considering a new marketing strategy, start small. A failed investment in marketing can be costly.

What sales channels do you use to reach your target customers?

• For example, do you sell directly to the customer, or through retailers or agents? Do you sell online?
• Compare your current channels with the alternatives. Note the distribution channels used by your competitors.
• Look at the positive and negative trends in your chosen distribution channels.

How do you do your selling?

• Look at the cost-efficiency of each of your sales methods . For example, online sales, in person, through an agent or using telesales.
• Include all the hidden costs, such as management time when calculating prices or return on investment.
• Explain how long it takes to make sales (and to get paid for them), what the average sales value is and how likely customers are to give repeat orders.

6. Management and personnel structure

Set out the structure and key skills and experience of the management team and the staff.

• Clarify how you cover the key areas of production, sales, marketing, finance and administration.
• Address any areas of deficiency, and your plans to cover this weakness.
• Explain your recruitment and training plans, including timescales and costs.

Analyse the workforce in terms of total numbers and by department

• Compare the efficiency ratios with competitors, or with similar industries. Useful figures might be sales, average salaries, employee retention rates and measures of productivity.

Be realistic about the commitment and motivation of the workforce

• Show how committed you and other members of the management team are. For example, how much you have invested in the business.
• Consider how you would survive the loss of a key member of the team.
• Note any unusual upward pressure on pay levels.
• Spell out any plans to improve or maintain motivation.

7. Your business operations

Look at the capacity and efficiency of your operations, and any planned improvements.

What premises does the business have?

• Do your business premises meet your current and future needs? What are your long-term commitments to property?
• What are the advantages and disadvantages of the present location? Should the business expand or move?

What production facilities do you have and how is production organised?

• How modern is the equipment?
• What is the capacity of the current facilities compared with existing and forecast demand?
• Who are your key suppliers? How do you select and manage them?

What management information systems are in place?

• For example, management accounts, sales, stock control and quality control.
• Are they reliable? Can they deal with any proposed expansion?
• A financier will be very concerned if management information systems are inadequate. Management of a business is always limited by the quality of the information available.

Are your IT systems reliable?

• Is IT a key strength (or weakness) of your business? The development of IT systems to help your business is usually an important issue.

What quality or regulatory standards does the business conform to?

• For example, ISO 9000 or CE approval.

8. Financial forecasts

Your financial forecasts translate what you have said about your business into numbers.

Set out historical financial information for the last three to five years, if available

• Break total sales figures down into component parts. For example, sales of different types of product or to different groups of customers.
• Show the gross margin for each sales component. List what costs are included as direct costs for each component.
• Show the movement in the key working capital items of stock, trade debtors and creditors. Use ratios such as stock turnover (in months), debtors period (in days), and creditors period (in days).
• Highlight any major capital expenditure made.
• Provide an up-to-date balance sheet, and a profit and loss account .
• Explain the reasons for movements in profitability, working capital and cash flow . Compare them with industry norms.

Provide forecasts for the next three (or even five) years

• The sophistication of your forecasts should reflect the sophistication of your business. A small business may only need sales, profit and cash flow budgets .
• A more complex, asset-based business - or one with complex working capital requirements - will need balance sheet forecasts as well.
• Use the same format as for the historical information, to make comparison easier.
• Clearly state the assumptions behind the forecasts. These should tie in with what you say in the rest of the plan. For example, if the plan says that the market is becoming more competitive, profit margins should probably be falling.
• Be realistic about forecasts in new markets. For example, how much resource can you devote to selling, what success rate can you expect and how long will it take to convince new customers ?
• Look at the overall trends of historical and forecast numbers. Are they believable? Do the forecasts allow for the possibility of problems and delays in payments that could affect cash flow?
• Consider 'what-if' scenarios. For example, consider what will happen to your cash flow if sales are 20% lower than forecast (or 15% higher).

Put detailed financial forecasts in an appendix at the end

Include a detailed list of assumptions. For example:

• the profit margin on each product
• how long it takes to collect payment from debtors
• what credit suppliers will offer you
• what financing you are expecting and the interest rate you will pay

Use the cash flow forecast to predict any financing requirements

• Add an extra contingency element onto the funding requirement shown in the forecast (perhaps 10-20%). Think about what mid-month peaks might be.
• Identify what types of financing you want. For example, long-term loans or an increased overdraft facility.
• Include the likely interest or dividend costs of any new finance.
• Carry out sensitivity tests on the cash required by changing key factors, such as sales or margin. Note the outcomes.
• Explain why the financing is required and what it will be used for.

If necessary, get help

• Small business advisers at banks and business support organisations may help you put together financial forecasts free of charge.

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9. SWOT analysis

A SWOT analysis helps show that you really understand your business and the key external factors that you need to deal with.

Set out a one-page analysis of strengths, weaknesses, opportunities and threats

• Strengths might include brand name, quality of product, or management experience.
• Weaknesses might be lack of finance, or reliance on just a few customers.
• Opportunities might be increasing demand or a competitor going bust.
• Threats might be a downturn in the economy or a new competitor.

Be honest about your weaknesses and the threats you face

• Spell out mitigating circumstances and the defensive actions you are taking.

Driving your business forward

Identify what makes you better than the competition.

• Think about what the key ingredients of your future success will be and how you will strengthen your position in the market.

Establish your overall business aims

• Where do you realistically intend to be in three years' time?

Decide on half a dozen key objectives that will make a significant difference

Many businesses think in terms of:

• income - more sales, better margins
• customers - new customers, higher levels of customer satisfaction
• products - improving existing products, launching new ones
• human resources - recruiting new employees, developing new skills

Set clear targets

• You should know exactly what you want to achieve, by when.

Work out how you will reach these targets

• Look at each aspect of your business in turn and create a step-by-step action plan for it.
• Get help preparing a business plan and financial forecasts from your local enterprise agency .
• Find an ICAEW chartered accountant or an ACCA accountancy firm for help with financial forecasting and business planning.
• Find a trade association relevant to your sector through the Trade Association Forum.

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Professional Bio Templates & Examples

The mere thought of putting a business plan together can send even the most enthusiastic entrepreneur into a tailspin, but writing one can help you work out whether you actually have a viable business idea on your hands.

First and foremost, the person who must be convinced by your business plan is you. After all, if you’re not persuaded by it, why should anyone else be?

Once you’re sold on the basics, you can use your business plan to convince potential sources of finance, investors, partners, and employees that you’re the real deal.

This jargon-free article will give you a better idea of how to get the ball rolling.

Executive Summary

The executive summary highlights and emphasises the main points of your business. No more than a page in length, the executive summary needs to be succinct, compelling, and engaging - you want the reader / potential investor to be interested enough to read on and, even better, buy into your business.

This section should help the reader understand the purpose and passion behind your business. You’ll need to include brief outlines of:

• Your business name and location
• A short, simple summary of your business concept
• When were you founded?
• A description of your business’ competitive advantages
• Proof that there’s a market for your product or service
• A summary of the management team you’ve assembled
• A brief description of at what stage of development your business is in
• What is your background and experience, if any?
• What was your decision making process?
• When did the initial idea occur?
• Where will the business operate?
• How long is the lease, if you have one?
• Why - the mission statement of your business

You’ll be elaborating on most of these themes throughout the document, so keep it fairly succinct. Revisit the content once you’ve finished the rest of the business plan - you might find better ways to express your ideas.

Products and services

This is your opportunity to really wax lyrical about the core aspect of your business: what you’re going to be selling. You want complete belief from the reader that your product is the best out there, and for them to see why they should invest.

Here’s what you need to include:

• What is your product or service?
• Why should customers purchase from you?
• How do you aim to sell your product or service?
• How are your products manufactured?
• Do you have any exclusive deals or partnerships?
• What is your pricing strategy?
• What problems, if any, do you see with your product or service? What are the benefits to the customer?
• How will the product be sold - online or retail?
• What makes your product or service stand out?

Management team

Your business plan needs to detail specifically who is involved in your business.

You want this particular section of your business plan to highlight that you have a more-than-capable team running your business, a team that will use their expertises to make the business work and profit.

Make a list or tree diagram of people's responsibilities, and attach CVs as appendices if you feel this supports your choices.

You’ll need to include:

• Who owns the business?
• Who are the directors and shareholders?
• Who will be involved in the day-to-day running of the business?
• What experience do these people have and how will this benefit the business?
• Who is your management team?
• What experience do they have?
• Who has direct reports?
• Do you have any vacancies yet to be filled?
• What is your recruitment process?

The marketing section is key in showing a potential investor that you know how you will bring in custom. It needs to show you’ve thought about how to get people interested in your business, and what makes it different from competitors in your market or area.

How you promote your business will differ depending on how you’ll make sales. If you’re opening a shop you’ll need to employ some local marketing techniques (think print adverts, flyers, broadcast media etc.) but if you’ll be selling online you should consider search marketing and social media promotion.

What to include can be broken down into four sections - the four P’s:

Who are you aiming your product at? Who is your target market? For example, “22-34, London based, interested in photography and male”.

What is the price of your product/service? How did you arrive at this price point?

How does this compare with other products in your market? What budget have you set aside for marketing?

How and where are you going to distribute your product/service? Retail, wholesale or online? For e-commerce, you’ll need to show you can drive traffic to your website, and with retail you’ll need to show you understand the importance of putting your product in the right shop/area.

‍ Promotion

How are you going to promote your business? How and where will you advertise?

Think about the methods mentioned in the opening paragraph - will any of these help get your business noticed?

The operations section of your business plan deep-dives into the logistical side of your idea. It highlights that you have thought concisely about the day-to-day running of your business. It needs to highlight and set clear expectations of exactly how your business will operate, and include details of the following:

Now is the time to be more specific about where you are based. Are there any works that need carrying out? Is there adequate parking? What licence do you need (if any)? Is there scope for you to develop a hybrid working space - could this suit your goals and how would it function?

Facilities and utilities

Does your location have internet access? Who will supply your water, gas and electricity?

How will you store and track your assets, stock, equipment?

What are your hours of trading? Are these flexible?

What payment systems will you have in place? Do you accept AmEx or contactless?

Do you need to invoice clients?

How many members of staff will you need? What will their duties be?

What is the customer journey? What is your refund policy? How will customer complaints be handled?

Financial Plan

A financial plan helps a potential investor think about whether they are likely to get a healthy return on investment (ROI). For this reason, it’s likely to be the most scrutinised section of your business plan.

If your business is brand new, think about how you’ll show predicted earnings - or you might want to outline any plans to scale up, including any intentions you have to access help in the form of an unsecured loan to grow your business . You could even look at a company similar to yours and what their earnings have been to compare. You’ll also need to include details of the following:

Profit and loss

Also known as an income statement, the profit and loss statement measures just that: the profit and loss of your business over a specific period. This takes information from the following equation:

Revenue - Cost of goods - Expenses = Net

Cashflow shows how much money is going in and out of your business. Think of cashflow as money management. Much like your personal finances, you need money coming in before you can take money out. If you spend money you don’t have coming in, this will amount to debt - this isn’t something an investor will look favourably upon.

Balance sheets

Compiled on an annual basis, the balance sheet gives a picture of the financial state of your business. Include assets, liabilities, and equity (see glossary on next page).

Sales forecast

Forecasting shows the depth of knowledge of your business. Break this section down into manageable parts, showing estimated sales by month over 12 months, then each year over five years. As with profit and loss, it’s important to be realistic, otherwise you will lose credibility.

Glossary of terms

Unsure of the difference between cash-flow and capital? While we do our best to avoid jargon, it’s important to understand the terminology when starting a business. To help you write your business plan, we’ve compiled a glossary of the most-used business terms and have provided easy-to-understand definitions.

An item owned by a business that has monetary value, for example, property, cash in the bank or inventory.

Lists the assets, liabilities, and equity of a business in order to calculate net worth.

An organisation that trades in goods or services.

Wealth owned by a person or business that is available for reinvestment in the company.

The amount of money being transferred in and out of a business.

A person who runs a limited company, often owning shares in the company.

A person who works for wages or salary in a business.

A person who employs people and pays them a wage or salary.

The value of the shares issued by a company.

Financial forecasts

A calculated estimation of future financial outcomes for a business.

A business licence granted by a company that enables a party (franchise) to market its products or services. For example, Ben and Jerry’s is the company, and the parlours where you buy the ice-cream are a franchise.

The items or stock owned by a business.

A person who invests money or capital into a business with an expectation of future financial return.

A company’s legal debts, for example, loans, mortgages or accounts payable.

Limited company

An organisation set up to run a business, which is responsible for everything it does. Finances are separate from personal finances, and Directors are responsible for decisions which affect the company.

Total assets of a business minus total liabilities. Determines the value of a company, for example, a business has £50,000 in cash, £200,000 of inventory and £20,000 in savings = £270,000 in assets. The business also has a £100,000 mortgage and £10,000 credit card debt (liabilities). Therefore the total net worth is £160,000.

An account showing a businesses net profit and loss over a given time frame.

Prediction of future sales.

Shareholder

A person who owns shares in a company or business, whose rights are often governed by a Shareholders’ Agreement.

A portion of the company’s ownership divided amongst shareholders, giving the owner a proportion of the company.

Sole trader

A person who is exclusively the owner of a business and solely responsible for all profits and losses of that business.

A new business.

Target market

A group of consumers at which a product is aimed. For example, sweets are often aimed at a target market of small children.

Umbrella company

A company that acts as an employer to agency contractors and processes their payments.

Keeping track of your accounting & finances

Ensuring you have a great accounting and financial plan is essential. Using a simple to navigate accounting system can be a perfect option. Why not consider using Crunch’s software ? Not only is it easy to use, but it also comes with support from our experts who can guide you through your accounting tasks and tracking your finances. We also have a ton of Crunch integrations , providing our clients with even more tools to run their businesses efficiently. For example, our integration with financial forecasting software Brixx allows you to project your business's financial future so you can test scenarios and be prepared for any eventuality. This is also a great tool to have when preparing your business plan.

We're comitted to helping new businesses thrive, and to encourage this we've shared lots of free resources - from in-depth business guides to blank invoice templates , we're here to help you succeed. To find more ways that Crunch can help make running your business effortless, join us online for 14 days completely free, or get in touch with our friendly advisors at a time that suits you. Alternatively, read our complete free guide to writing a business plan for lots of in-depth, interesting insights and considerations.

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Working on a business plan

Whether you’re starting a business or already running one, our guide will help you evolve and support your business plan effectively.

• An introduction to business plans
• The benefits of a business plan
• What should your business plan include?
• Presenting your vision
• Ongoing business planning
• Contact Business Gateway advisers

1. An introduction to business plans

Whether you’re starting a business or already running one, creating a business plan is key.

We recognise that starting a business plan can be daunting when you’re facing a blank piece of paper. That’s why we’ve developed a template of a business plan structure for you to use, along with a handy guide to take you through every section of the document. The guides ask explicit questions, designed to help you collate all the business information you need to develop a full and comprehensive plan of action. Once you understand how to make a business plan, you’ll see the benefits of having these key pieces of information collated.

2. The benefits of a business plan

Externally, there are many key benefits to creating and managing a solid business plan. Primarily, it can help secure finance, funding and measure success. It does this by giving you a clear way to present other stakeholders such as lenders, investors and potential partners with your business plan outline, your aims and how you’ll achieve them.

And it also has benefits internally. Such as helping you spot potential pitfalls before they happen, efficient finance structuring, developing your business and measuring your success.

For more information, download our Business Plan Guide.

3. What should your business plan include?

When creating a business plan, it should include:

• An outline of your business, its aims and objectives and whatever products or services you provide – this is called an executive summary.
• An overview of the market in which you operate.
• Who is involved in your business.
• Your short term and longer-term objectives.
• Your resources and any need for external funding.
• Your strategies for selling your product/service.
• Your strategies for marketing your product/service.
• Financial forecasts.

For more information, download our Business Plan Template.

4. Presenting your vision

You want your plan to make an impact and leave a positive impression.

Keep it short and concise. Make it readable and confident.

Keep the presentation professional.

Clearly describe what your business does and set out your vision for your business. This includes who you are, what you do, what you have to offer and what the market you’re entering looks like. See our Market Reports for more information . Make sure your plan is realistic. Once you have prepared your plan, use it. If you update it regularly, it will help you keep track of your business' development.

5. Ongoing business planning

As your business grows and changes, your business plan should become a business growth plan. Although it might seem like more work, it follows the same business plan structure as your original and will keep your business on the right track, help avoid unpleasant surprises, enable you to be more flexible, and help you adapt to changing circumstances. And we all know that change is inevitable – whether that be the market, your employees, the political climate, or your personal circumstances.

It’s called the business planning cycle. How you choose to handle it is up to you and what’s right for your business. It could be monthly, quarterly or every six months, and you can decide which key people you want to be involved. However, we recommend an ongoing process that keeps you on top of everything. By regularly assessing your performance against the plans and targets you’ve set, you’re more likely to reach the goals in your business growth plan. See our setting targets and key performance indicators guide for more information.

6. Contact Business Gateway advisers

Our two downloads will help you in creating a business plan, and completing it to the best of your ability. You can also get in contact with your local Business Gateway office and our Advisers will be able to provide further guidance such as refine your business plan and discuss development plans.

Get the support you need right now

You can connect with us through the contact form, call us or contact your local Business Gateway office.

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Bringing your business idea to life.

This tutorial will talk you through some of the important business planning tasks you should look at to help ensure your new business is set up to succeed.

Strategic planning: the basics

Creating a strategic plan is a key component of planning for growth. It will help prepare a realistic vision for the future of your business and in doing so can maximise your potential for growth.

Eight things you need to know about sales

Sales are the lifeblood of any business and selling arguably the most important business function of them all. Here, Dr Brian Williamson, successful serial entrepreneur and chairman of marketing agency 4icg, offers eight tips on how to be an effective salesperson.

Creating a business plan for your startup: step-by-step guide

You’ve had a great idea for a startup or new business. Now you need to make sure it all makes sense and create a document that shows how and why your business will succeed.

Every company is unique and this will be reflected in its business plan. The steps below can be tailored to your requirements but should ensure the key elements are all included.

Step 1. Set out your stall

You may be clear about what will make your new business great, but you need to be able to communicate that to investors, customers and other stakeholders. An effective business plan will often start with a clear statement about what the business will do, and what product or service it will sell.

Step 2.  Set clear goals

Do you want to takeover the world or just a small corner of it? Is creativity, social impact or innovation more important than maximum profit? Decide on the business, financial and even personal goals you want to achieve in the short and medium term.

Step 3. Explain your product

Describe what your product or service will be, and what makes it unique or different. What are its limitations or downsides? How will you make, develop or source it?

Step 4. Introduce your customer and market

Who is your target customer and how big is your potential market? The better you understand the customer, the more likely you will create something they will buy. Market research is critical. Consider how you could test the market and assess demand with a Minimal Viable Product.

Step 5. Explain your sales and marketing approach

How will you make potential customers aware of your product or service? Marketing and advertising costs are often underestimated, especially in a crowded market with a lot of competition for customers. Will you have time to do the marketing yourself or will you need to hire staff or outsource tasks?

Step 6. Consider variable costs

These are the costs associated with the product or service itself, including manufacture, storage and delivery. For a digital business this could include development and testing.

Step 7. Estimate fixed costs

There will also be fixed costs that you will need to pay no matter how much you sell. These could include salaries and wages, National Insurance, tax, office costs, accountant’s fees, bad debts, interest payments and rates.

Step 8. Work out your pricing

Take the cost of the product or service away from the sales price and you have your gross profit. Subtract your overhead costs for the relevant time period and you’ll start to have an idea of how much you’ll need to sell to make a profit. There are various pricing models and you may need to experiment to find the right one for your business.

Step 9. Evaluate the competition

Identify other businesses that could compete for customers. Make a list of factors related to their product or service – everything from cost and service level to features and reputation. Assess your idea against the competition to spot risks and opportunities.

Step 10. Crunch the numbers

Financial calculations and forecasts are at the heart of a business plan. They could include capital requirements, profit and loss forecasts, cashflow forecasts, required assets and funding requirements. How much startup capital do you need and what runway will that give you before more investment or revenue is required?

Step 11. Decide on a legal structure and business organisation

Will you be a sole trader, limited company or set up a business partnership, perhaps with a co-founder? Do you need staff and will they be offered any equity?  What access to advice and expertise do you have – and what will you need to pay for?

Step 12. Assess the risks

With so much disruption and uncertainty it has never been more important to assess the risks your business may face. Be honest about gaps in the founders’ knowledge or experience and look to fill them. Work out contingency plans and stress-test your assumptions.

Step 13. Iterate your approach

A business plan should be an evolving document that reflects what you are learning and the data and insight that is being collected. The sections may need to be adapted or added to, depending on the nature of the business, its sales model and type of funding.

Step 14. Talk to Barclays Eagle Labs

The Ecosystem Managers at Barclays Eagle Labs are used to working with founders and entrepreneurs at the start of their business journey. They can advise you on approaches, considerations and next steps. Find your nearest Eagle Lab here.

Step 15. Find a business plan template to suit your needs

There are numerous business plan templates online with some specifically tailored for startups. No two are the same, so it pays to search widely and borrow from multiple sources to create the business plan that best fits your circumstances and concept.

This Barclays Business Plan Generator is a great first step in clarifying your business idea.

Barclays (including its employees, Directors and agents) accepts no responsibility and shall have no liability in contract, tort or otherwise to any person in connection with this content or the use of or reliance on any information or data set out in this content unless it expressly agrees otherwise in writing. It does not constitute an offer to sell or buy any security, investment, financial product or service and does not constitute investment, professional, legal or tax advice, or a recommendation with respect to any securities or financial instruments.

The information, statements and opinions contained in this content are of a general nature only and do not take into account your individual circumstances including any laws, policies, procedures or practices you, or your employer or businesses may have or be subject to. Although the statements of fact on this page have been obtained from and are based upon sources that Barclays believes to be reliable, Barclays does not guarantee their accuracy or completeness.

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Small Business UK

Advice and Ideas for UK Small Businesses and SMEs

10 point guide to creating a successful business plan

Setting out a plan for your business can seem like a daunting task, especially before you've even got it off the ground. This 10-point guide shows the benefits of a good business plan and what to consider when writing one.

The 10 point business plan guide.

• If you want to raise money for your business you will need to have a well presented, carefully researched business plan to support your request.
• Producing a business plan also helps you to keep control of your business by allowing you to look at how your actual performance differs from your forecast performance and forcing you to explain the differences.
• Preparing the plan can help you clarify your thoughts about the success or failure of your business venture. It can also help highlight in your mind the important steps which need to be taken.
• Consider whether one plan will suffice for outsiders and inside use, or if two plans will be more helpful to you.
• Your plan must get across to readers what is interesting about your business. Stress your management ability and demonstrate carefully the market for your product.
• An ideal format for your plan for outside use is to have between three and ten pages of text which draw out the important points, plus a series of financial figures. Excessive detail should be confined to appendices.
• You can get help to produce the plan from an advice agency or an accountant. It is crucial to try out your plan on someone independent before you try it out on the financiers.
• Use the Checklist: what should be in your business plan to help you decide what should be in your business plan.
• Your plan should be typed and neatly presented in a folder.
• Include cash flow forecasts, profit forecasts, and possibly a balance sheet forecast. The more money you wish to raise the more detail your forecasts need to have and the greater period they should cover.

Related: Business plan dos and don’ts

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How to create the perfect business plan in 10 steps

Every business needs a plan. But how do you write one? Here are 10 steps to help you get it right.

What is a business plan?

A business plan is the roadmap for a business and shows the overall strategy, goals and vision for success. It shows how a business operates and how it will make money.

It’s different from a business proposal which is a pitch to sell a product or service to a prospective customer.

Why do you need a business plan?

You may be wondering why you need a plan in the first place. After all, you have a clear idea in your mind about what you want to achieve. You know the market, you have the necessary skills. So why do you need a plan?

There are many good reasons. Here are just a few of them:

• To clarify your ideas: Writing something down gives it structure and substance. Your ideas will be clearer on paper than in your head.
• To discover and solve problems: The business idea you have in mind may have some holes – you might not have covered everything. This will become much more apparent when your words are on the page.
• To get feedback from others: A properly written business plan can be shared with trusted people to get their advice.
• As a formal document: Banks, investors, accountants and lawyers will want proof that you’re serious about your business. A written plan will provide that proof.
• To guide you as your business grows: A good business plan will keep you on track and focused, even as day-to-day work becomes a distraction.

If you’ve never written a business plan before, it can be a daunting prospect. But these 10 steps will help you create the perfect business plan.

1. The executive summary

This is where you describe your company and the product or service that it will sell. This must be brief, to catch and hold people’s attention.

Try to describe the goal and mission of your business in just a couple of sentences. Work hard at this and try to make it memorable.

Treat this section as an elevator pitch document – it should be succinct and easy to remember.

You can read more about how to create the executive summary in our guide What is an Executive Summary in a Business Plan?

2. Who are your customers?

Do you have a clear idea of the type of people (or businesses) who will buy your product or service? If not, think carefully until you do.

This is one of the first questions any investor will ask you about your business plan. Have your answers ready.

• Know whether your customers will be consumers or businesses. If they are businesses, who will you target within those companies? Maybe it’s the salesperson, or perhaps it’s the CEO?
• Determine whether you'll have regular clients or one-off buyers.
• Make sure you’ve actually spoken to some of your potential customers.

3. Evaluate the target audience

There’s no room for guessing here. You need to identify the people or businesses who will buy from you. Think about the following:

• Demographics – such as age, gender and social status
• Firmographics – includes size of the company, revenue of the company and services or products of the company
• Location – perhaps a specific area, town, or even country
• Profession – maybe you’re targeting accountants, police or lawyers, for example
• Groups – such as people with shared interests or habits

The better you evaluate your target audience, the more comprehensive your business plan will be.

4. What are your opportunities?

Successful businesses think big. You might be starting small, but you don’t have to stay that way. So write down the possible opportunities for your business as it grows.

For example, perhaps you’re planning to start by selling over the internet. That’s great, but how will you get traffic to your site? How will people find you online? Will you need salespeople? If not, how will you convince people to buy from you?

As the business grows, is there scope for a bricks-and-mortar retail outlet? What other opportunities will you have if your business grows as planned?

5. Understand the competition

Every business has competition. If you don’t mention yours, investors will think you’re unprofessional – or just plain naive. Be thorough, and list all your existing and potential competitors:

• Who are your direct competitors – those selling the same products as you?
• Who are your indirect competitors – those whose market overlaps yours?
• What will prevent other companies competing with you – what are the barriers to entry?
• What is your USP (unique selling proposition)? In other words, what’s your point of difference that makes you different from your competitors?

That last point is important. You need to explain how your business will differentiate itself from all the others. That might be based on price, service, quality, range or value. Make sure you spell it out.

6. Build a simple financial plan

All business plans should contain some financial information. This should include the overall costs of setting up your business. For example:

• Cost to make or buy products
• Costs for labour and manufacture, including raw materials
• Employee costs, especially for service businesses
• Distribution and marketing costs
• Fixed and variable overheads

Good accounting software will help you create a draft financial model. We’ll look into this in more detail in a future guide. For now, talk to your accountant or bookkeeper for help and advice.

7. Include an outline marketing plan

For this section of your business plan, you need to think about the five ‘Ps’:

• Pricing – how will you price the end product?
• Positioning – how does your product or service fit into the market?
• Promotion – what channels will you use to attract and communicate with customers?
• Profit – how much do you expect to make per item sold?
• Place – what are your sales outlets?

8. Plan your operations

Put your vision to one side for a moment. What are the daily tasks that need to be done when running the business? Include all business processes such as manufacturing and packaging. Try to cover all departments too, including sales and customer service.

9. Get the right people

This is one of the most important factors. Think about who you want to hire . How will you find people whose skills complement yours? And how will you convince them to work for you?

Also think about who you want as your business advisors. You'll need people you can trust, to guide and mentor you at times when you need it.

10. Simplicity is the key

Keep it simple. Complex and long documents won’t be read – either by you or by potential investors. A business plan should be brief, relevant and focused (you can use our free business plan template ).

If you find yourself getting carried away while writing, stop and take a break. Then go back and edit what you’ve written. Shorter is better. The core of a good business plan should be just a few pages long.

Plan your business around your strengths

As you write your business plan , keep in mind your strengths – and also any areas for improvement. This will help you construct a plan that makes the most of your abilities, while still being realistic. That's more likely to convince investors that you're serious.

Your business plan is a roadmap for your business – but it's not set in stone. Review it at least once a year and make changes if necessary.

Above all, keep getting feedback from your advisors – official and unofficial ones. With their help, you'll create the perfect business plan that takes you where you want to go.

Xero does not provide accounting, tax, business or legal advice. This guide has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the content provided.

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How to Write a Business Plan: Your Step-by-Step Guide

So, you’ve got an idea and you want to start a business —great! Before you do anything else, like seek funding or build out a team, you'll need to know how to write a business plan. This plan will serve as the foundation of your company while also giving investors and future employees a clear idea of your purpose.

Below, Lauren Cobello, Founder and CEO of Leverage with Media PR , gives her best advice on how to make a business plan for your company.

Build your dream business with the help of a high-paying job—browse open jobs on The Muse »

What is a business plan, and when do you need one?

According to Cobello, a business plan is a document that contains the mission of the business and a brief overview of it, as well as the objectives, strategies, and financial plans of the founder. A business plan comes into play very early on in the process of starting a company—more or less before you do anything else.

“You should start a company with a business plan in mind—especially if you plan to get funding for the company,” Cobello says. “You’re going to need it.”

Whether that funding comes from a loan, an investor, or crowdsourcing, a business plan is imperative to secure the capital, says the U.S. Small Business Administration . Anyone who’s considering giving you money is going to want to review your business plan before doing so. That means before you head into any meeting, make sure you have physical copies of your business plan to share.

Different types of business plans

The four main types of business plans are:

Startup Business Plans

Internal business plans, strategic business plans, one-page business plans.

Let's break down each one:

If you're wondering how to write a business plan for a startup, Cobello has advice for you. Startup business plans are the most common type, she says, and they are a critical tool for new business ventures that want funding. A startup is defined as a company that’s in its first stages of operations, founded by an entrepreneur who has a product or service idea.

Most startups begin with very little money, so they need a strong business plan to convince family, friends, banks, and/or venture capitalists to invest in the new company.

Internal business plans “are for internal use only,” says Cobello. This kind of document is not public-facing, only company-facing, and it contains an outline of the company’s business strategy, financial goals and budgets, and performance data.

Internal business plans aren’t used to secure funding, but rather to set goals and get everyone working there tracking towards them.

As the name implies, strategic business plans are geared more towards strategy and they include an assessment of the current business landscape, notes Jérôme Côté, a Business Advisor at BDC Advisory Services .

Unlike a traditional business plan, Cobello adds, strategic plans include a SWOT analysis (which stands for strengths, weaknesses, opportunities, and threats) and an in-depth action plan for the next six to 12 months. Strategic plans are action-based and take into account the state of the company and the industry in which it exists.

Although a typical business plan falls between 15 to 30 pages, some companies opt for the much shorter One-Page Business Plan. A one-page business plan is a simplified version of the larger business plan, and it focuses on the problem your product or service is solving, the solution (your product), and your business model (how you’ll make money).

A one-page plan is hyper-direct and easy to read, making it an effective tool for businesses of all sizes, at any stage.

How to create a business plan in 7 steps

Every business plan is different, and the steps you take to complete yours will depend on what type and format you choose. That said, if you need a place to start and appreciate a roadmap, here’s what Cobello recommends:

1. Conduct your research

Before writing your business plan, you’ll want to do a thorough investigation of what’s out there. Who will be the competitors for your product or service? Who is included in the target market? What industry trends are you capitalizing on, or rebuking? You want to figure out where you sit in the market and what your company’s value propositions are. What makes you different—and better?

2. Define your purpose for the business plan

The purpose of your business plan will determine which kind of plan you choose to create. Are you trying to drum up funding, or get the company employees focused on specific goals? (For the former, you’d want a startup business plan, while an internal plan would satisfy the latter.) Also, consider your audience. An investment firm that sees hundreds of potential business plans a day may prefer to see a one-pager upfront and, if they’re interested, a longer plan later.

3. Write your company description

Every business plan needs a company description—aka a summary of the company’s purpose, what they do/offer, and what makes it unique. Company descriptions should be clear and concise, avoiding the use of jargon, Cobello says. Ideally, descriptions should be a few paragraphs at most.

4. Explain and show how the company will make money

A business plan should be centered around the company’s goals, and it should clearly explain how the company will generate revenue. To do this, Cobello recommends using actual numbers and details, as opposed to just projections.

For instance, if the company is already making money, show how much and at what cost (e.g. what was the net profit). If it hasn’t generated revenue yet, outline the plan for how it will—including what the product/service will cost to produce and how much it will cost the consumer.

5. Outline your marketing strategy

How will you promote the business? Through what channels will you be promoting it? How are you going to reach and appeal to your target market? The more specific and thorough you can be with your plans here, the better, Cobello says.

6. Explain how you’ll spend your funding

What will you do with the money you raise? What are the first steps you plan to take? As a founder, you want to instill confidence in your investors and show them that the instant you receive their money, you’ll be taking smart actions that grow the company.

7. Include supporting documents

Creating a business plan is in some ways akin to building a legal case, but for your business. “You want to tell a story, and to be as thorough as possible, while keeping your plan succinct, clear, interesting, and visually appealing,” Cobello says. “Supporting documents could include financial projects, a competitive analysis of the market you’re entering into, and even any licenses, patents, or permits you’ve secured.”

A business plan is an individualized document—it’s ultimately up to you what information to include and what story you tell. But above all, Cobello says, your business plan should have a clear focus and goal in mind, because everything else will build off this cornerstone.

“Many people don’t realize how important business plans are for the health of their company,” she says. “Set aside time to make this a priority for your business, and make sure to keep it updated as you grow.”

A Yale professor who struggled with stress created a concrete guide to being happy. Here's how it works.

• Dr. Laurie Santos teaches "Psychology and the Good Life" at Yale University.
• She came up with the course after seeing students struggle with their mental health.
• Recently, she shared her own obstacles to happiness on her podcast, "The Happiness Lab."

At an annual checkup, Dr. Laurie Santos' tests all looked good — except one.

Her CRP levels, which measure inflammation, came back a little higher. Her doctor said one of the triggers could be heightened stress .

It made sense. Santos, a Yale professor, oversaw over 500 students during the pandemic, ran a university lab, and led a podcast, she said in a recent episode .

But there was some irony to her high stress levels: Santos is also known as a "happiness expert." After becoming head of Yale's largest residential college in 2016 and witnessing depression and panic attacks among her students, she created "Psychology and the Good Life," a course that explores how to improve well-being.

It became the most popular class in Yale's history and was eventually adapted into an online course with over 4.7 million students worldwide.

Recently, Santos decided to open up about her struggles.

In new episodes of her podcast, Santos tackles how she " flunks her own class ," from being a perfectionist to fearing boredom.

"Some people really think I'm this walking happiness emoji," Santos said. "But of course, I'm human." She shared some of the lessons she learned.

Curb self-comparison

Santos said one of her biggest problems is perfectionism. In one episode , Ryan Dilley, her podcast producer, said that Santos constantly strives for flawless results in her work.

"Sometimes it's not possible, but it's so hard to watch," Dilley said to Santos. "You're horrible to yourself sometimes."

She told BI that "existential perfectionism" haunts her students, too, who strive to have ideal grades, looks, jobs, and relationships.

Related stories

"There's no domain in which perfectionism is sparing young people," she said, adding that much of it is driven by frequent self-comparison via social media .

She said this chase for perfection is one of the biggest things people get wrong about happiness. "We have all these theories about the things that will make us feel better," she said, whether it's making more money or scoring that dream job .

"By and large, the research seems to show that our circumstances don't matter for our happiness as much as we think," she said. "We'd be much better off changing our behavior and mindsets."

Question your need for busyness

Santos said most of her issues arise from "trying to navigate busyness and busy culture" as a professor and podcaster. While she loves what she does, she also recognizes how much work it is to balance both responsibilities.

She wants to create "healthier standards for what counts as work," but said it's a struggle because her busyness also greatly contributes to her career success.

Part of what keeps her (and many of her students) so busy is a perceived glamour around hustling. "There's a sort of social status to being busy," she said. Becoming healthier means pushing back against common cultural norms.

Reframe negative emotions

Santos found ways to look at negative emotions through a different lens in multiple episodes.

For example, she learned that boredom isn't something to run from . While it's a feeling she never liked and something her students "definitely avoid at all costs," she also told BI that it's crucial for "coming up with their best creative ideas."

In the episode on stress, she spoke to David S. Yeager , a psychology professor at UT Austin. He taught her that how one frames stress impacts their body's reaction to it : people who learn to view stress as a helpful adrenaline boost or performance enhancer are less likely to be debilitated by it.

"That was really profound for me, because stress really felt like it's just this biological phenomenon," Santos said. "But even there, our mindset really seems to matter."

Take small, daily steps

If there's any big takeaway to get from her course or recent podcast episodes, Santos said it's that "happiness takes work."

In her class, she has students complete surveys to track their happiness at the beginning and end of the semester — a practice she follows in her own life. "You're not going from zero to 100," she said. The goal is to create small changes that amount to a 10-15% positive increase in your mood.

For example, if you're intensely self-critical, that work might look like tracking and challenging your thoughts with a daily journal instead of absorbing negativity. "That's pushing against the habit that feels really natural," she said.

Watch: How a sheep wagon became one man's doomsday survival plan

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Best Start Up Business Loans June 2024

One of the hardest things for many small business owners is securing the funding they need to invest in their ideas and grow their business. And if you’re considering taking out a business loan as a start up, this process can be even more difficult. 

Between the number of start-up business loans on the market, the pros and cons of various providers, and differing requirements around the age of your business or your previous trading history, it’s not as easy as it should be to choose the right product for your fledgling organisation. 

That’s why we’ve done some of the legwork for you by comparing start-up business loan providers, leaving you with more time to focus on what matters: growing your business. 

We’ve looked at what small business owners chose as the most important factors when comparing lenders: from the flexibility of small business loan terms to the maximum amount borrowable and the level of customer service. 

Every provider on this list of the eight best business loans for start ups either lends to start ups with no trading history or offers loans for small businesses that have been trading for less than a year. 

The result is a start-up business loans guide which should help you compare products and, we hope, take the first steps towards turning your business plan into a profitable enterprise. 

Editor’s Picks

The editor’s picks listed above are based on NerdWallet’s editorial team’s analysis of all the business loans providers on our site. The team has assessed 15 lenders from high street and online-only providers to evaluate which brands offer standout features that may be important for your business.

Editor’s picks are our own opinion and don’t constitute advice, recommendation or suitability for your financial circumstances. They are editorially independent of any relationship NerdWallet has with partners who may compensate us.

Important Information: Our Reviews, Star Ratings and Editor’s Picks do not consider the product provider’s lending rates and therefore do not reflect how much it costs to borrow from the reviewed brand. Always compare rates from other providers when considering any type of borrowing.

Top 8 Best Business Loan Providers for Start Up Businesses

This top 8 is from 15 business loan providers that NerdWallet evaluated and reviewed. Others are available. Find out how we use ‘best’ and our guide to ratings .

Lloyds Bank Small Business Loan

NerdWallet UK

Lloyds Bank offers loans for start ups, although expect to be asked for additional information and oversight – such as cash-flow forecasts – before it considers lending to your new business.

Lloyds Bank also gives you the flexibility to pay off loans in full before the term ends at no extra cost, and it gains points in our rankings for offering customers wide-ranging customer service options. For more information, check out NerdWallet’s Lloyds Bank Business Loans Review .

Lloyds Bank loans key features:

• Secured or unsecured: Lloyds Bank’s offering includes both secured and unsecured business loans for small businesses.
• Early repayment: Repay your Lloyds business loan in full and ahead of schedule without worrying about incurring a penalty.
• Small businesses upper limit of £50,000: A small business can borrow between £1,000 and £50,000 with Lloyds.
• Loan term stretches to 25 years: A Lloyds small business loan can be repaid over between one and 25 years.
• You can borrow for up to 25 years with a secured or unsecured small business loan.
• Small businesses can borrow between £1,000 and £50,000.
• The lender offers web-based support via a virtual assistant or through the Lloyds Business app, alongside help @LloydsBank on its X account (formerly Twitter). Face-to-face assistance is also available in Lloyds branches across England and Wales.
• You won’t incur any early repayment charges if you want to pay off your loan in full before your term ends.
• There are no Lloyds Bank branches in Scotland or Northern Ireland.
• You can only access a Lloyds small business loan if you have a turnover of less than £3 million.
• You’ll need to provide a personal guarantee if you’re applying as a limited company or limited liability partnership.

NerdWallet has partnered with Funding Options. Check your eligibility with this lender and many others without affecting your credit score.

HSBC Small Business Loan

HSBC offers loans for start-up businesses, although it expects you to provide proof of how you intend to repay the loan. For a new business, this may take the form of a business plan and cash-flow forecast.

HSBC’s loan options include a fixed-rate Small Business loan of up to £25,000, in addition to a fixed- or variable rate Flexible Business Loan, for borrowing over £25,000. You could be eligible for cashback on your loan if you use it for environmental purposes. To find out more, read NerdWallet’s HSBC Business Loans Review .

HSBC business loans key features:

• Small businesses borrow up to £25,000: HSBC has a small business option starting at £1,000 and extending up to £25,000. For higher amounts, businesses can opt for the Flexible Business Loan.
• Terms of 10 years for Small Business Loans: A Small Business Loan can be repaid over between 12 months and 10 years, while the Flexible Business Loan can go up to 20 years.
• Capital repayment holidays: Taking a capital repayment holiday when you first get your Small or Flexible Business Loan can offer you more flexibility, though it will mean you pay more in interest overall.
• Green SME Cashback Fund: For business loans going towards environmental projects, business owners can qualify for cashback on the amount they borrow.
• With HSBC, businesses can borrow up to £10,000 (HSBC Kinetic Small Business Loan), up to £25,000 (Small Business Loan) or a potentially unlimited amount (Flexible Business Loan).
• You can borrow over a term of up to 10 years (Small Business Loan and HSBC Kinetic Small Business Loan) or up to 20 years (Flexible Business Loan).
• Access to customer service is via the lender’s website, phone helpline and mobile app, as well as face-to-face support in a branch.
• There is no arrangement fee for the HSBC Small Business Loan.
• Although you can make overpayments without a fee, you will have to pay an interest charge for early repayment in full for the Small Business Loan. You may also have to pay a prepayment fee and an early repayment fee for the Flexible Business Loan.
• Borrowers seeking to secure HSBC’s Flexible Business Loan product may have to pay arrangement fees.
• The term flexibility of an HSBC Small Business Loan is not as good as some other providers on the market.

Barclays Unsecured Business Loan

Barclays offers a variety of borrowing solutions for businesses at different stages of growth and across a variety of sectors. Options include unsecured and secured business loans, as well as commercial mortgages, business overdrafts, asset finance, invoice finance, and its Barclaycard for business credit card. 

Start ups can borrow from Barclays – just expect to be asked to provide a forecast of your business’s annual sales turnover before you can access any finance.

For further information about Barclays business loans, read NerdWallet’s Barclays Business Loans Review .

Barclays business loans key features:

• Choices: Barclays offers a range of borrowing options to suit different business needs, including secured and unsecured business loans.
• Repayment holidays: In some cases, Barclays will allow businesses to take a six-month repayment holiday at the start of an unsecured business loan term. Interest will continue to accrue on the loan and is calculated within future repayments.
• Rates options: Borrowers can choose between fixed- and variable interest rates.
• Businesses can borrow from one to 10 years with an unsecured loan.
• Barclays offers a wide range of customer service options, including social media, via its app or ‘help and support’ on your online account.
• Barclays has branches in England, Wales, Scotland and Northern Ireland.
• You can borrow up to £100,000 with an unsecured loan, subject to status.
• General business phone lines are only open five days a week.
• More information may be required to apply for a Barclays business loan online if you are not an existing customer.
• Unsecured loans are not available for all industries, but Barclays does not specify which industries may be excluded on its website.

Fleximize Flexiloan Lite

Direct lender Fleximize only lends to businesses with at least six months’ trading history. While one year’s trading history is required to access their flagship Flexiloan product, only six months are required for businesses seeking to take out a Flexiloan Lite. As such, this product has been designed with start ups and other new businesses in mind.

Fleximize offers customers both secured and unsecured business loans up to £500,000. However, businesses must have a minimum monthly turnover of £5,000 to apply. To find out more, read NerdWallet’s Fleximize Business Loans Review .

Fleximize business loans key features:

• Borrow as much as £500,000: A Fleximize loan could give you the option of borrowing a maximum of £500,000.
• Short-term focus: Terms are between three and 12 months for the Flexiloan Lite.
• No early repayment fees: Borrowers can overpay their loan, or pay it back in full before the term ends, without worrying about fees.
• Decisions on loan applications are made within 24 hours.
• With Fleximize, you can borrow between £5,000 and £500,000, subject to status.
• Fleximize offers short-term lending for start-up businesses, with term lengths of three to 12 months for Flexiloan Lite.
• With the Flexiloan Lite, Fleximize offers business loans specifically designed for newer organisations.
• You can repay your Fleximize business loan early at no extra cost, and you will only pay interest for the time you’ve had the loan.
• Fleximize has limited remote customer service options, with only an online contact form and phone line on weekdays. You can visit the company’s HQ, but this is just one location, in Ipswich.
• All Fleximize products, including secured loans, require a personal guarantee from at least one director or shareholder. Secured loans also require an equitable charge, which means the lender may claim equity in a property if the borrower defaults on the loan. 
• You can only borrow a maximum of £250,000 on an unsecured Flexiloan or Flexiloan Lite if you are based in Scotland or Northern Ireland.
• Sole trader and non-limited partnership loans start at over £25,000.
• Businesses need a monthly turnover of at least £5,000 before they can access Flexiloan products.

TSB Base Rate Business Loan

TSB’s lending options can suit several different business needs, with fixed- and variable rate business loans available for small businesses. TSB says it is willing to lend to businesses that are just starting out, and nowhere does it say that an established trading history is essential to access their loan products.

You will usually need to have a TSB business current account to take out a small business loan. To find out more, read NerdWallet’s TSB Business Loans Review .

TSB business loans key features:

• Interest options: Borrowers can choose between a fixed-rate loan and a variable interest rate loan, known as a ‘base rate loan’.
• Secured or unsecured: Secured and unsecured business loans are available as both fixed- and variable rate products.
• Variable term lengths: Repayment periods of TSB loans can vary based on the type of loan chosen.
• Repayment holidays: You may be eligible for repayment holidays on a TSB business loan. Bear in mind that you will still accrue interest when you take a break from your repayments, so you will pay more interest overall.
• TSB’s fixed-rate loan offers flexible loan terms of between one and 10 years. (Its base rate loan offers loans of up to 25 years).
• You can access customer service agents over the phone or face to face in a branch in England, Scotland and Wales.
• You can borrow from £1,000 up to £1 million with its fixed-rate loan (or from £25,001 to a potentially unlimited amount with its base rate loan).
• You will generally have to open a business current account to be eligible for a small business loan.
• There are no 24/7 customer service options for business loan customers.
• Break costs may be applied if you repay part or all of a fixed-rate loan before the end of the agreed term. This does not apply to base rate loans.

Iwoca Flexi-Loan

iwoca gives business access to flexible loans that suit a range of purposes. If you’re a start up, you can borrow up to £10,000 from iwoca without needing any trading history.

A dedicated business loans provider, iwoca currently offers one type of business loan: the Flexi-Loan. Find out more by reading NerdWallet’s iwoca Business Loans Review .

iwoca business loans key features:

• Different borrowing limit for start up businesses: While established small businesses can borrow from £1,000 to £500,000 with iwoca, start-up borrowing is capped at £10,000.
• Short-term flexibility: You can pay back an iwoca business loan over term lengths from one day to two years.
• Early repayment: Borrowers will not face an early repayment charge on the iwoca Flexi-Loan.
• Not for sole traders: Only limited companies, limited liability partnerships and ordinary partnerships can apply for iwoca business loans.
• iwoca welcomes applications from start-up businesses, which can borrow up to £10,000 with the Flexi-Loan.
• With loan terms of one day to two years, iwoca may be suitable if you are looking for short-term borrowing.
• There are no early repayment fees.
• Phone and online customer service and support are available.
• Start ups are offered a lower upper borrowing limit than established businesses, meaning other providers on the market may be able to offer a larger loan to your new enterprise.
• All iwoca Flexi-Loans come with a variable interest rate.
• Sole traders are not eligible for an iwoca business loan, while limited companies will be required to provide a personal guarantee – typically from one of the company directors.
• iwoca has no app, so there is no app-based customer service.
• iwoca has no branches, so there is no face-to-face customer service (though you can visit its headquarters in London).

This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.

Cubefunder Business Loan

Cubefunder is a direct lender which claims to value the human element in business lending, meaning it promises to judge businesses by more than just their credit score. This provider of short-term small business loans scores well for the upper borrowing limit and fee-free repayments but loses points for its limited customer service options. 

Start-up businesses can apply to Cubefunder for a loan, provided they have been trading for three months or more. Find out more by reading NerdWallet’s Cubefunder business loans review .

Cubefunder business loans key features:

• Different borrowing limits for sole traders and limited companies: Cubefunder’s Unsecured Business Loan is for limited companies only, with businesses able to borrow between £5,000 and £100,000. For sole traders, Cubefunder offers a smaller business loan for borrowing between £2,500 and £7,500.
• Short-term borrowing: Cubefunder business loans can be repaid over three to 12 months.
• Flexible repayment plan: You can choose to pay your loan back in daily or weekly instalments.
• Fee-free repayment: Cubefunder doesn’t charge fees for repaying your loan early.
• Cubefunder offers a maximum unsecured loan amount of £100,000.
• Cubefunder business loans are short-term, over a maximum of 12 months, and you can choose to repay your loan on a daily or weekly basis.
• As long as you pay the full amount in the agreed period, there are no individual late payment fees.
• There are no early repayment fees if you want to pay off your Cubefunder business loan before the term ends.
• Cubefunder business loans are only available for businesses based in England and Wales.
• If you are a new customer, you are required to provide a personal guarantee when taking out a loan.
• You can only contact Cubefunder over the phone or by email. There is no mobile app, live chat feature or access at a branch.

British Business Bank Start Up Loan

Founded in 2014, the British Business Bank is a government-owned lender tasked with helping UK small businesses access the financial support they need to grow. Although it is owned by the Department for Business and Trade, the British Business Bank operates independently of the government.

The British Business Bank’s government-backed programmes include their Start Up Loans scheme, which is dedicated exclusively to funding new businesses which cannot secure finance from other sources. So far, the British Business Bank has lent over £1 billion worth of loans to over 100,000 UK small businesses. 

British Business Bank Start Up Loans key features:

• Designed for start ups: Start Up Loans from the British Business Bank have been explicitly created to help start-up businesses. 
• Borrow up to £25,000: Start-up businesses can take out loans ranging in size from £500 to £25,000 with interest fixed at 6% per annum.
• Fee-free borrowing: Start Up Loans can be repaid over one to five years, with no fees for early repayment and no fees for arranging the loan.
• Mentoring and support: After you receive the loan, you’re eligible for 12 months of free mentoring, plus support, guides, and access to templates to help you on your business journey. 
• Repayment terms are flexible, with no fees for early repayment.
• Start-up businesses looking to borrow smaller amounts can access loans starting at just £500.
• Founders of start-up businesses can apply for British Business Bank funding if they can’t secure finance from other sources.
• A year’s worth of free mentoring is included with the loan, in addition to support throughout the application process.
• Some large commercial lenders allow you to take out loans with much longer repayment terms than the British Business Bank.
• Customer service options are limited, with borrowers able to use an online enquiry form or telephone for support from 9am – 5pm on weekdays excluding Thursdays and from 9am – 4pm on Thursdays.
• At £25,000, the maximum borrowing limit is lower than the upper limit for many commercial lenders. 

This top 8 only contains business loans providers reviewed by NerdWallet UK.

The pros and cons featured with each brand are chosen by us based on a combination of our expert, research-based opinions and an exclusive survey of UK business owners and decision-makers. The survey identified the business product features that people felt were most important. There are other pros and cons that should be taken into account before considering a financial product. Information was correct at the time of publication but may have changed since.

Nerdwallet Survey: December 2022

Top 8 Start Up Business Loans for Small Businesses: Summary

Important information: Neither the review nor the star ratings considered the lender’s lending rates or representative APR, and therefore does not reflect how much they charge to borrow with them. Always check and compare a lender’s rates against others on the market when considering a loan.

What is a business loan?

A business loan is a form of finance that can be used to help support and expand your small business. 

Business loans are used by established businesses to fund growth and expansion or to cover temporary cash-flow problems. For start-up businesses, business loans may offer a means of getting your idea off the ground. 

As with personal loans, business loans involve borrowing a sum of money and paying it back, with interest.

One of the most important differences between personal loans and business loans is that with a personal loan, you will be personally liable for repaying the amount you have borrowed.

With a business loan, as long as the appropriate company structure is in place, that responsibility falls to the business instead. This will not be the case, however, if you are a sole trader, or you have secured your start-up business loan with a personal guarantee .

You can also typically borrow more through a business loan (than through a personal loan), making them more appealing for some start-up businesses. What’s more, the interest payments on your business loan may be tax deductible – unlike payments on a personal loan.

Are start-up business loans regulated?

Most forms of business lending are unregulated. However, where a business loan is for £25,000 or less and designed for certain business types, including sole traders, loan products may be regulated by the Financial Conduct Authority (FCA). 

You should research the form of business finance you are interested in, and the lenders involved, to check if they are regulated ahead of applying.

What is a start-up business loan?

A start-up business loan is simply a loan which is suitable for new businesses – also known as start ups. 

Because start-up businesses often struggle to secure funding – and because getting a new business off the ground can be a cash-intensive process – start-up business loans can be lifelines for new enterprises. 

By taking on a start-up business loan, a new venture can acquire the capital it needs to commence operations and generally get up and running. 

In this round-up of the best start-up business loans, we’ve defined a start-up loan as a product which can be accessed by a business in the first year of trading. 

Some of the above loans have been explicitly designed with start ups in mind and others are more general business loans whose lending criteria don’t exclude new businesses from applying.

What is a start-up business?

There is no one universal definition of what counts as a start-up business. 

The term ‘start-up business’ may refer to any young or newly established business in its early stages of growth and development.

In this case, to make the process of narrowing down funding options easier for you and your business, we’ve defined a start up as being in its first year of trading. 

That’s why we’ve filtered out any business loan products which require one year’s trading history or more before you can apply. 

How to apply for a business loan for your start-up business

Applying for a business loan – even as a start-up business – may be easier than you think. Just follow the steps below.

• Decide how much you want to borrow and for how long. Once you’ve decided a start-up business loan is the right option for you, it is important to consider the balance between what you can afford and what you need to help grow your new business.
• Compare business loans and lenders to find the right fit for your start-up business. Shopping around and comparing business loans is an important step. Because lenders perceive more risk in lending to new and unproven ventures, not every business loan provider on the market will be willing to lend to start-up businesses. Take time to research and weigh up the various terms, conditions, and requirements of business lenders to make sure you are eligible for funding and that the loan you end up with suits the needs of your start-up business. 
• Submit your application and all relevant documents. This may include how long you have been trading, details about your finances, and what you want the money for.
• Wait to hear back. It can take a couple of hours to a matter of weeks to hear back about your business loan application, depending on your financial circumstances and the lender in question.

» MORE: How to get a business loan

Who is eligible for a start-up business loan?

In theory, anyone who owns a business is eligible for a business loan, so sole traders, small and medium-sized enterprises (SMEs) and large businesses may all be eligible to apply for a business loan in the UK. 

As there is no official definition of what counts as a start up – and what counts as a start-up business loan – there may be many products which would be suitable for your start-up business. 

However, lenders will set their own criteria and determine your eligibility for a loan based on information such as:

• how long your business has been trading
• whether your business is based in the UK
• your annual turnover
• your business and personal credit history

» MORE: How do business loans work?

Types of business loans for small businesses

When shopping around in search of finance for your start-up business, you will quickly discover that there are two main types of business loans: 

Unsecured business loans

Unsecured business loans do not require the use of company assets as security, though you may be required to provide a personal guarantee . These types of loans tend to have higher interest rates and other restrictions because there is a greater risk of the lender losing money if you can’t pay off what you owe. Unsecured business loans also require a good financial history and credit rating as evidence that the business will be able to repay the loan as there is no other guarantee in place. If you run a start-up business with no trading history, there may be some unsecured loan products which you can’t access. 

Secured business loans

Secured business loans require that you put down an asset such as property as security. Secured loans often come with lower interest rates than unsecured loans as they represent less risk for the lender. They may also give you access to a larger loan amount over a longer term. However, if you’re planning to take out a secured loan to fund your start-up business, be aware that secured loans come with the added risk that you could lose the asset you put up as security if you miss the payments.

» MORE: Types of business loans

How to compare start-up business loans for small businesses

There are a number of factors to bear in mind to help you compare start-up business loans. It’s important to consider which start-up loan is going to be right for your new business. Factors to compare include the interest rate on the loan, the amount you can borrow and any fees for taking out the loan. Of course, eligibility requirements are also relevant here – especially for brand-new enterprises.

Before you apply for a business loan for your small business, you should consider whether it is the best fit for you and your start-up organisation. Also make sure that you won’t be excluded by the business loan provider simply because you don’t have a specific length of trading history. 

Once you’ve identified a few business loans which might be suitable for your start-up business, there are a few key questions you can ask yourself to help you compare business loan providers and ultimately decide whether a business loan could be right for your new business. 

• How much do I want to borrow?
• When do I need to repay the loan?
• How much can I afford to repay each month?
• Am I struggling with unpaid invoices?
• Do I hold equity in a property?
• Do I need the loan to buy a specific valuable asset?
• What’s my personal and business credit rating like?
• How long has my business been operating?
• Do I need a lump sum?

Alternatives to start-up business loans

There are many funding alternatives to consider if you’re unsure about whether a start up business loan is the right option for your new business. Some of these include:

• business overdrafts
• business credit cards
• merchant cash advances
• invoice finance
• asset finance
• small business grants
• crowdfunding
• angel investors

Business Loans Methodology

NerdWallet evaluated and reviewed 15 business loans providers (a mix of traditional and online-only lenders). Collectively, these represent the largest lenders by assets and internet search traffic, along with notable or emerging players in the industry.

We considered more than 10 data points for each account, based on the criteria that matter most to users, scoring them on flexibility of term-length, customer service, and amounts borrowable, among other factors. This information was gathered from each financial institution’s website and company representatives. In addition, we regularly add new brands and our editorial team reviews them against the same criteria for consistency and accuracy. 

Using the same data across all products and features we were able to create star ratings on a scale of one to five stars, where a one-star score represents ‘poor’ and a five-star score represents ‘excellent’. Please read more on our business loans methodology .

Frequently asked questions about start-up business loans

Start ups often need capital to get off the ground. Even business models that aren’t massively capital intensive are likely to need some funding when starting out from scratch. 

Here are a few possible uses for start-up funding when launching a new business:

• Overheads: A capital injection may be needed to cover the cost of essential overheads.
• Business growth: The money you borrow could help your business expand, including by investing in promotion or marketing. 
• Purchasing power: Business loans can help you buy new equipment, increase inventory or invest in office space. 

» MORE: Why do businesses need finance?

In general, there is no fixed personal or business credit score you need in order to apply for a business loan. A strong credit score could increase your chances of success and potentially give you access to lower interest rates, although it isn’t the only factor lenders will consider.

For start-up loans in particular, where there are no business assets to act as security for the loan, lenders may be more wary of lending money and may ask for more proof that you’ll be able to pay it back. As part of their considerations, lenders may examine your personal credit record before offering you a start-up business loan. 

However, bear in mind that your credit score isn’t the only factor that lenders will consider when deciding whether to offer you a start-up loan.

While it may not be an essential requirement, you may find that many lenders will not consider you for a business loan if you do not also have a business bank account. 

As a rule of thumb, the process of applying for a start-up loan is likely to be a bit simpler if you already have a business bank account.

In general, business bank accounts can make it easier to manage your finances and ensure that there is a clear separation between your personal and business funds.

Review methodology

At NerdWallet UK, we base our reviews and our ‘Best’ pages on the results of surveys we undertook about what was important to people who use these products. This allows us to look at products impartially of any commercial arrangements we have and fairly rate the products on the same set of criteria. Best means our ‘Best’ and is based only on what products we have aligned to our surveys, which form the basis of our reviews and ratings. This means that there will be other products on the market that we have not included in our ‘Best’ pages. Best does not mean it’s best for you, nor does it mean the ‘cheapest’. Our reviews may display lenders’ rates. This additional information has not been included in our evaluations but is still very important when choosing a product. Rates offered can depend on circumstances, amount and term. Always check details before proceeding with any financial product. Product details reflect the information that was available at that time but may have changed since. We strive to give you a review on as many products as possible, but there will be products not included on the market. The review is our opinion, but it does not constitute advice, recommendation or suitability for your financial circumstances. You can view our full review methodology here .

About the Author

George Harrison is a lead writer at NerdWallet. A graduate of the London School of Economics, George has worked as a professional writer for almost a decade, with articles appearing…

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Election 2024: Our plan for business will ‘turbocharge growth’, Tories claim

By: Jessica Frank-Keyes

Political Reporter

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The Conservatives have claimed their plan for the UK’s businesses will “turbocharge growth and productivity” ahead of the July 4 general election.

Extending the full expensing policy to leasing, abolishing the main rate of self-employed national insurance contributions, and keeping the VAT threshold under review are among a series of measures to support firms the Tories are highlighting today.

Full details were outlined in the party’s manifesto, launched two weeks ago, which also includes efforts to limit red tape, a pledge to deliver a free trade deal with India and the Gulf states and boost public R&D spending by £2bn.

It comes as business secretary Kemi Badenoch is set to speak at the British Chambers of Commerce’s annual conference .

“[We] have a plan for a future where hard work and doing the right thing are rewarded, not punished with higher taxes, or discouraged with unconstrained welfare,” Badenoch said.

“We celebrate aspiration and opportunity. We recognise that innovation and competition are the powerful forces that bring us prosperity and lift living standards.

“For Labour, private business is just a vehicle to pursue their political objectives – a managed economy, heavily regulated, heavily taxed and weighed down by trade union demands.”

The Conservatives criticised Labour’s plans to reform workers’ rights, and say the measures could discourage hiring and mean bosses are unable to move on unproductive employees.

Small business minister Kevin Hollinrake said if re-elected the Tories would “go even further” to support SMEs.

“Our clear plan will turbocharge growth and productivity across the country,” he said. “It’s clear other parties don’t hold our vital small businesses in the same esteem.

“Labour will shackle businesses with French-style punitive regulations and new, aggressive enforcement bodies, which will result in more red-tape, more tribunals and lower growth.”

But Jonathan Reynolds, shadow secretary of business and trade, said: “This is desperate nonsense from a Conservative Party that has failed to publish a business endorsement letter this election, because they haven’t got enough support, and failed to secure trade deals with the US and India, because they’re distracted by their own chaos.

“The Conservatives have not changed. Their Chancellor admitted their manifesto is unfunded and praised Liz Truss’s economy-crashing policies.

“The choice on 4 July is clear: stability for business with a changed Labour Party or economic chaos with the Conservatives.”

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My First Trip to Norway, With A.I. as a Guide

Can artificial intelligence devise a bucket-list vacation that checks all the boxes: culture, nature, hotels and transportation? Our reporter put three virtual assistants to the test.

By Ceylan Yeğinsu

The assignment was clear: Test how well artificial intelligence could plan a trip to Norway, a place I’d never been. So I did none of my usual obsessive online research and instead asked three A.I. planners to create a four-day itinerary. None of them, alas, mentioned the saunas or the salmon.

Two assistants were, however, eager to learn more about me in order to tailor their initially generic recommendations, which they had spewed out within seconds. Vacay , a personalized travel planning tool, presented me with a list of questions, while Mindtrip , a new A.I. travel assistant, invited me to take a quiz. (ChatGPT, the third assistant, asked nothing.)

Vacay’s and Mindtrip’s questions were similar: Are you traveling solo? What’s your budget? Do you prefer hotels or Airbnbs? Would you rather explore the great outdoors or pursue a cultural experience?

Eventually, my chat sessions yielded what seemed like well-rounded itineraries, starting with one day in Oslo and moving on to the fjord region. Eventually, I locked down a trip that would combine the assistants’ information and go beyond a predictable list of sites.

This time around, my virtual planners were far more sophisticated than the simple ChatGPT interface I used last year on a trip to Milan. Though it offered more detailed suggestions for Norway, I ended up ditching ChatGPT in the travel-planning stage after it repeatedly crashed.

Vacay’s premium service, which starts at $9.99 per month, included in-depth suggestions and booking links, while Mindtrip, which is currently free, provided photos, Google reviews and maps. During the trip itself, each delivered instantaneous information by text and always asked if more specific details were needed. Sadly, only ChatGPT offered a phone app, whose information I found to be outdated (the $20-per-month premium version is more current).

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