A Practical Business Plan. To set Goals or Targets, and Get Funding.

Table of contents

• Introduction
• The current ‘use’ of Business Plans in the UK
• Key Takeaways
• The stages of a Business journey and the Business Plan contents
  • The Idea stage
  • The startup / funding stage
  • The growth stage
• Funding
• Business support required to Prepare a Practical Business Plan
• FAQs
  • including: How to Create a Live Business Plan in 7 Days?

Introduction

• Starting a new business is an exciting adventure, full of big ideas and dreams. This can include every size and type of business: from a ‘one person’ business starting with an idea at home, to planning a significant ‘company’ to trade globally. For every one, the planning principles are the same. Define the need or interest of the prospective customers or clients, define the products or services to address these needs or interests, define the profile of the first clients or customers ( for marketing reasons), plan the business details, the marketing  and the funding, plan the launch…. then start!  
• The essential planning tool for every one is a Practical Business Plan, a planning tool that is used from day one to plan the business, then used to plan the set up, plan the growth, then used to monitor actual figures V forecast to take appropriate actions when necessary.
• Unfortunately so many prospective entrepreneurs do not understand the business  process, have an idea for a business and take the first steps to start a business without any validation of the prospects for the business. Hence why so many people will spend time and money progressing a business idea to satisfy a need or interest without any prospect of the business being successful, and realising their need or ambition…  and even when asking for advice on their idea, will not be advised appropriately.  Essential  to follow the validation steps included herein.
• It is stated that starting a new business in the UK now is much more difficult than in past generations. There were well understood markets, marketing methods and processes to start a business. The internet and technology developments have made many aspects of starting a business easier, and the opportunities for some to make large amounts of money very fast. But for most people new to business, it has created options in a competitive ‘jungle’: with inappropriate and uninformed advice coming in from every direction.
• And AI has further confused the marketing landscape.
• For the ‘new to business’ startup, a challenge is to find a source of experienced advice appropriate for the person and the business idea: then following a set planning process to start the business with confidence.

The Current use of Business Plans in the UK

• In most business advisory groups and organisations, the advice is, ‘create a business plan’, and a template for the plan is available.  For the budding entrepreneur who believes that he/she can go it alone and be successful, for whatever ego-centric reason, or to avoid spending money, this is rarely successful.  And how could it be, with no experience of business, marketing, competition, finances ……….  Over the years talking to prospective or current business people, the question is asked, ‘Do you have a Business Plan?’. If the answer is ‘yes’, and we are able to see the plan, it is always a collection of ideas, data downloaded from the internet, and randon numbers referring to sales, profits, funding, etc. Many with a business idea, are actively seeking investors for high six figure investments. And a high percentage of these entrepreneurs do not have what is even a viable business idea.
• For many ‘old school’ business people, now offering business advice, the term ‘Business Plan’ recalls spending many hours in a boardroom, discussing business development with colleagues, whiteboards and sheets of paper stuck to the walls, lots of scribbled notes and numbers, …..then a printed Business Plan was produced, put in a drawer, never to be seen again. With sales targets  given to the Sales Management to achieve.
• The importance of Practical Business Planning must be understood if more businesses are to succeed in the ever evolving, and increasingly competitive, world of the UK  business scene.
• Funding. So many startup and growing businesses will create a version of a Business Plan, just to support applications for funding, and then abandon the Plan. Many young businesses seeking funding, advise that they have already had funding, but the money is spent with minimum benefit to the business. On one occasion seeing a copy of the original application for the funding,  it was obvious that the original business numbers and forecasts were unrealistic, but they had got the funding: the business now has to plan to repay the original loan and seek new funds. These are clear cases where a lack of business advice or experience were evident.

Key Takeaways

• A Practical Business Plan should be  the dashboard for every UK business: set the route, plan the timing, check the speed, see any road blocks, plan an alternative route, flashing lights  to highlight problems…
• Every business, from a small start up to a growing company with premises and staff should have a Practical Business Plan.
• Most businesses do not even have a Business Plan with working details, never mind using a Practical Business Plan. Many businesses are set up with hope without any understanding of how business ‘works’

• At every stage of the business development, the content of the plan, and the use of the plan should be adjusted and updated.

• Included in a plan, are some  business activities which have to be expanded: these include marketing, sales, cashflow, the business operations, premises, HR   And specific services required by every business.: theses include accounting, payment processing, IT, insurance, phones.

• To prepare  a  business plan at whatever business stage, requires startup business experience at the working business level: a small one person business requires a totally different plan from a company planning to trade at corporate level.

• Starting a new business is an exciting adventure, full of big ideas and dreams. For UK startups looking to grow, finding money to make those dreams real can feel like a tough mountain to climb. Did you know that understanding how to turn an idea into a successful business is the first step? Funders and investors, who are people or groups that put money into businesses, are looking for strong, clear ideas and solid plans. They want to see that your business has a good chance of success. This means you need more than just a great idea; you need to present it in a way that truly stands out. You need compelling presentations and strong, trustworthy documents to grab their attention and convince them to invest. You also need a solid strategy for Funding For Your Business.

For UK startups, a Practical Business Plan is incredibly important. It’s not just a nice-to-have; it’s a *critical requirement* for securing funding. Think of it as your business’s very own roadmap. It shows where you are going, how you plan to get there, and what challenges you might meet along the way. A well-written business plan helps you validate your entire business idea. It makes sure your plan makes sense and can actually work. It also helps you attract important people, stakeholders and associates, who might want to join your journey, like partners, employees, or, most importantly, funders.

Many new businesses struggle because their business plans are not clear or complete. Do you know why so many start-up business, do not even start, or fail within a few years? Some common mistakes include plans that are incomplete, forecasts that seem too good to be true, cashflow is not managed or there is not enough information about the market the business is trying to enter. If a plan isn’t strong enough, it may not even get past the validation stage.

The Stages of a Business Journey and the Business Plan Content.  The Idea Stage

• The idea stage: it will feature the financials, requiring a first pass to include costs, sale prices, margins, sales targets, overheads and startup costs. A first pass at a cashflow may increase the initial amount of funding required. It will help identify the many issues requiring more details ( eg, marketing, staff, premises costs, minimimum order quantities)
• When at the internal planning stage, the main content will be the financials. However when sharing with a business advisor seeking comment and advice, outline details of the business to be included:
  • the market sector
  • the need or interests of the prospective customers or clients,
  • The products or services to be produced or provided
  • Current business resources and experience
  • The USP(s)
  • Profile of the first prospective customers or clients ( for marketing reasons)
  • Market conditions ( competition)
  • Marketing ( how to reach the target customers or clients)
  • Startup Funding required
  • Budgets for the various activities and services
  • Business operations
  • Ongoing financial management ( including cashflow)
  • Launch plans
  • Resources required
  • A Financial Review

The Stages of a Business Journey and the Business Plan Content.  The Setup/Funding Stage

• Updating all the elements included in the idea stage, and with the following  headings( for potential funders)
• Executive Summary: This is  the cover story of your business plan. It’s a super short,  overview designed to grab a funder’s attention. It clearly explains what the business does and why, and what is needed from funders.
• Company Description: Here is the heart of your business. It explains the mission (what the business aims to do), the vision (what is hoped to achieve in the future), the legal structure (how the company is set up), and importantly, the unique value proposition. This means what will make the business successful.
• Market Analysis: This section is all about understanding the playing field. A view of the business sector, who are the main players in the UK, and suggests  how the business will start and succeed. This is done as proof of homework completed, and to confirm details to potential funders.
• Organization & Management: Funders and Investors don’t just invest in ideas; they invest in people. This part talks about the team structure, who the key people are in the business, and what important skills and experience they bring to the business
• Service or Product Line: This section is where the products or services are defined, and need to be specific for a certain target market. Whether it’s a physical product, a digital or live  service, or a new way of doing things, it is in detail. The features and benefits expanded, and how they solve a problem or an interest  for the customers.
• Marketing & Sales Strategy: Having a great product or service is one thing, but how will people know about it? This section explains exactly the  plans to reach customers and convince them to buy from you in the UK market. Marketing these days involves multiple activities and services that are constantly evolving, and it is recommended to seek business based advice rather than specialist marketing advice ( who may suggest that the latest or a particular service is the ideal solution for a every business, usually with a minimum, or no, proof)
• Financial Projections: Money talks, especially to funders! One main reason for startup failures – ran out of cash. This is a super important part. It is important to create realistic and conservative forecasts that show how the  business expects to make money. This includes income statements, balance sheets (what a trading company owns and owes), and cash flow projections (money coming in and money going out). These figures are essential for showing that your business can actually make a profit and is a good place to invest.
• Funding Request: Finally, this section clearly explains how much money you need from funders  and, just as importantly, how you plan to use and repay that money. Essential to make sure this request is well-justified and shows how the capital will help your business grow and become successful.
• Grant Applications: Many UK government bodies and innovation funds offer grants – money you don’t have to pay back – to promising startups. Applying for these often involves a lot of paperwork and specific ways of applying. For commercial businesses it is recommended never to depend on grants ( although in a few select sectors it is a preference. eg Health, energy, technology, educations ).
• Financial Models & Forecasts: While your business plan includes financial projections, a detailed financial model goes even deeper. More comprehensive financial models that support your strategic planning can be created and give potential funders an even clearer picture of the financial future. These models can show different scenarios and help the business have strategy options.
• Market Research Reports: Having a strong understanding of the market sector is key.  Reports are used to assist the business strategy and significantly strengthen a business plan, showing potential funders   the target audience and competitive landscapes are fully understood.
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• The Stages of a Business Journey and the Business Plan Content.  The Growth Stage

• The growth stage may be any time from 6 months after launch to 1 or 2 years of trading. the requirement for the plan may be for all or any of the following reasons: marketing, financial management, funding, new business streams, seeking investors.. or seeking independent advice on growth plans
• Once a business has been trading for at least a year and has submitted accounts, many more funders will consider funding applications
• The process for planning  is the same as above. setting the business targets and goals, then planning the roadmap to achieve these.

Funding

• Seeking Funding is the main reason why many startup and growing businesses create any form of a business plan.
• In a recent survey, 85% of startup businesses advised that they needed funding. Asked how much funding they actually needed, 100% said ‘No idea’.
• It is reported that 45% of all SMEs will seek funding over the next year
• Hence the process to identify how much funding is required by a startup or growing SME, is a critical activity, and must be progressed at a working level, not at a ‘top down’ consultancy or  general business level. See the section herein – Business Support necessary to create a Live Business Plan.
• A pre qualifier before planning funding  for a startup, is: ‘Is the business viable?
• Many prestartup businesses declare that they are looking for investors to start the business. With some exceptions, they have to be advised that there is nothing to invest in: and the best option is to start the business with commercial funding and prove the concept, before even thinking about investors.
• Many established businesses appear on the Dragon’s Den program, seeking investors ( and business expertise ) but fail to get investment as their plans for the business and their valuation of the business are lightweight, or lack credibility.

Support Required to Produce a Practical Business Plan

• At the idea and set up stages, it requires specific advice based on experience: and this experience must include current experience of starting and growing a successful business. Business planning, funding and marketing are just three areas where current experience is essential. General advice offered from all directions is rarely effective.
• For example, Startup Assist UK offers free advice to all UK startup and growing businesses: and will advise if a business idea is insufficiently planned, or is not a viable business: or it is not a business that will realise the needs or ambitions of the entrepreneur.  But to viable businesses, practial advice based on experience and personalised business services can be provided to help set  up, launch and grow a good business. To the latter businesses, developing a first Live Business Plan  can be completed in a matter of days, working with an experienced business advisor: then used to support all issues as the  business grows.

• UK-Specific Expertise: It is essential to have a current  understanding of the multiple issues involved in starting a business in the UK.  It does not require general advice, the industry is awash with this.  it requires specific advice tailored to a specific person and his/her business.

• Tailored Approach: No two startups are exactly alike. There might be different industries, the level of experience of the entrepreneurs varies,  and there are different stages of startup or  development,  hence why a tailored approach to planning is essential at every stage.

• Experienced Advisors:  Business Advisors need to have current business experience, knowing what works and what does not work They must come from backgrounds in entrepreneurship (have started or currently run own businesses), finance (they understand the  cash side of a business ) This means you’re getting advice from people who have been there, done that, and truly understand the challenges that a business faces in todays business climate.

• Comprehensive Support: Getting ready for a startup or funding  involves many different moving parts. The value of having one reliable source of support who can assist or advise an entrepreneur with all issues is immense. From offering early advice, creating the business plan, offering advice on funding. then providing ongoing advice is the ideal and most effective way to manage a growing business. This means you don’t have to juggle multiple contacts or consider alternative recommendations; you have a single, trusted team member helping you every step of the way.

• Focus on Results: Ultimately, the  main goal ifor every business is achieving the business goals and targets. And it must be realsed that achievement against targets must be tracked and the targets revised as the business progresses. People with proven sales experience are used to high business targets, then exceeding them!

Frequently Asked Questions

• What services does Startup Assist offer to UK startups?
  Startup Assist UK provides a comprehensive suite of services including the initial advice (unlimited and provided free), creating  the business plans, providing practial advice on all the service elements of starting or growing a business, including funding, applying for funding,  and a service to assist selecting and commissioning the multiple issues involved in starting a business. ( includes: involving partners, target setting,  marketing, web site, funding, premises, .. )

• Why is a professional Live Business Plan essential for securing funding in the UK?
  A professional business plan acts as your company’s blueprint, articulating the vision, strategy, and financial projections. It is critical for validating the idea, getting the necessary funding, and demonstrating to funders that the venture is well-researched, viable, and has a clear path to profitability. Then the plan is used as a management tool to compare actual sales and costs v forecast.

• What makes Startup Assist uniquely qualified to help UK startups?
  Startup Assist stands out due to the UK-specific hands-on expertise of the advisors and associates: and the tailored approach to creating each Live Business Plan within days, not many weeks or months. Access to advice on all business services is through a single point of contact.  The focus is squarely on starting a workable business then aiming to achieve specific targets and goals for the business. Applying the combine experience of our associates, Startup Assist UK has created a process to create a first Live Business Plan for and with a viable business, in 7 days or less.

www.startupassist.uk