What Is a Business Plan?
A business plan is a written document that outlines your business idea, market research, goals, strategy, and financial forecasts. It’s both a management tool and a pitch document, tailored to different stakeholders—bank managers, angel investors, government bodies like Innovate UK, or simply yourself and your team.
In the UK, a solid business plan is often essential for:
- Applying for a Start Up Loan (British Business Bank)
- Securing a business bank account with lenders like Barclays, NatWest or Lloyds
- Pitching to angel networks or VCs
- Applying for grants or innovation funding
- Securing landlord or supplier agreements
When Do You Need a Business Plan in the UK?
Typical situations where a business plan is essential in the UK include:
- Registering as a limited company with Companies House and preparing for operations
- Applying for a government grant or R&D funding through Innovate UK
- Seeking equity investment via SEIS/EIS (Seed Enterprise Investment Scheme)
- Joining a UK accelerator or incubator
- Expanding your business into new regions, such as moving from England into the Scottish or Welsh markets
Types of Business Plans
In the UK, businesses tend to use the following formats:
- Traditional Business Plan – Long-form, detailed document, ideal for funding and planning.
- Lean Business Plan – A concise outline often used for internal strategy or early-stage startups.
- One-Page Plan – Useful when discussing ideas informally or seeking feedback.
- Investor-Focused Plan – Tailored specifically for angel investors or venture capitalists, usually includes a pitch deck.
What Should a UK Business Plan Include?
Here’s what to include in your UK business plan, with references to UK-specific resources and terminology:
1. Executive Summary
Although it appears first, write this last. Summarise:
- Business name and address (include registered office if a limited company)
- Legal status (sole trader, limited company, partnership)
- Summary of products/services
- Market opportunity in the UK
- Brief overview of financials and funding needs
- Mission statement