How to write a business plan in seven easy steps

Telegraph

29-04-2025

Have you started your own business from scratch? Let us know by emailing [e-mail]
Your head may be brimming with brilliant ideas for a million-pound-plus business (or businesses). Yet you may not have the faintest notion of how to go about actually getting things off the ground.
One of the key things you need to do at the outset is put together a strong business plan.
But how do you go about this – and what does it need to include? Here, Telegraph Money explains what you need to know.
What is a business plan?
What should you include in a business plan?
How to format your business plan
Tips to write a successful business plan
Presenting a business plan
What is a business plan?
Put simply, a business plan is a document which clearly outlines the vision, mission, purpose and intentions for your venture.
You're essentially mapping out answers to the questions that come with starting a new enterprise.
James Mountain, product and strategy director at Funding Circle, an online platform for business loans, said: 'A well-crafted business plan helps both you – and potential investors – gain a deeper understanding of your operation, showing how you intend to achieve your goals, whether there is a gap in the market and what differentiates you from competitors in that space.'
What should you include in a business plan?
Executive summary: outlining highlights of the business and details of the problem it is solving.
Business description: an overview of your venture, including the story behind the brand as well as its objectives.
Offers and market: includes a description of the product, the unique selling point, the target market and how it fits the industry.
Sales strategy: covering channels, pricing and promotion.
Marketing strategy: including objectives and metrics and how to reach the target market.
Operation and team: details of the key people who will be involved and in charge of driving growth.
Sales forecasts: these need to be realistic financial projections (profit and loss, cash-flow, balance sheet and so on).
Timeline and metrics: how you measure success, your targets and your ideal results.
How to format your business plan
Keep it simple
Consider keeping your master copy in Word or Google Docs so it's easy to update your business plan and collaborate on it. Think about it being a live, working document that can help you with launching and running your business, not something that gathers dust.
Ana Clarke, a business strategist, said: 'Some of the most successful business plans are often a simple Word document. The key is to keep the plan structured and concise.'
Preferred formats tend to be those that include a 'one pager' to summarise the whole document, and those that are to-the-point, well organised and visually appealing.
Tailor to your audience
When you reach the point that your plan is ready to share, it may be worth converting your plan to PDF. This protects the formatting and looks professional. Once you have the bulk of your plan in place it can be valuable to have more than one final version, so it is suitable for different readers.
Carol Evans, an entrepreneur, business coach and founder of Consultancy and Coaching said: 'Be sure to match the format to the audience. For funders, investors or collaborators, design and presentation matter. A visually engaging, easy-to-follow document helps you stand out. For internal use, keep it simple but structured.'
Lauren Chiren has run a host of companies over the years and also supported start-ups to develop their business plans. She said: 'Personally, I like Canva presentations as they are attractive, engaging and you can generate great animations. In addition, you get to run as a live presentation directly from Canva, download as a PowerPoint or PDF, so you have multiple styles to choose from and match to your audience.'
Don't make it too long
Think about limiting your document to around 10 to 12 pages to help maintain clarity and engagement.
How to write a business plan
A strong business plan needs to start with an executive summary. This is essentially your elevator pitch, according to James Caan CBE, former panellist on BBC's Dragon's Den who founded his own recruitment company. He said: 'This summary should tell me who you are, what you do and why it matters – all in less than two minutes.'
The next stage is a business description. This needs to clearly define the problem your business is solving – and how it provides the solution. Mr Caan said: 'Your market analysis must show real understanding of your audience and competitors backed by data, not guesswork.'
Then, you need to outline your product or service offering, including details on what makes it valuable and how it stands out from what is already on offer.
From here, your focus is on presenting your sales and marketing strategy. In other words, how you will acquire and retain customers. This should be commercially viable, backed by projections and data, not theoretical.
Having done this, it's time to set out your operations and team. This section also provides a good opportunity to show off your skill set and why you are a good person to drive the business and invest in. Mr Caan said: 'Talk me through who is doing what, and how the business will function day-to-day. Also highlight the key people who will drive growth.'
At this point, you need to lay out the financial plan. This should include cash-flow projections, as well as a sales forecast and expenses estimations. Mr Caan added: 'Give me three to five years of forecasts with clear assumptions, margins and funding needs.'
Finally, include an appendix for any supporting evidence such as CVs, customer testimonials or product specifications.
Tips to write a successful business plan
Be clear and concise
'If it reads like a thesis, it's going in the bin,' Mr Caan said. 'Investors are looking for insight, not fluff. Tailor the plan to your audience. A venture capitalist has very different priorities to a bank manager or grant assessor.'
Avoid industry jargon
Keep language simple and concise to get your points across as quickly as possible. Mr Caan added: 'If I can't understand it quickly, I'll assume you don't, either.'
Tell a story
Think about the journey – where you're going and why someone should believe in you and your business.
Include projections
Always validate claims with credible data, clearly demonstrating evidence of customer demand and market potential based on research.
Use the 'Smart' method
This framework is designed to help you create a plan that is specific, measurable, achievable, relevant and time-bound.
Seek help
Speak to other small businesses about what they included. Also consider talking to a financial adviser on any aspects of your plan that you are unsure of. Brush up on business banking.
Use online resources
Make use of free templates available online to get you started. For example, Funding Circle's online resources can help individuals get started on their business – or grow it further. Also check out local organisations such as the Chambers of Commerce and the Federation of Small Businesses.
Be specific with finances
When outlining your business's financial plan, be sure to identify where the funding will come from and when potential investors can expect a return on their investment.
Mr Mountain said: 'Being transparent about how much money is needed, what it will be used for and when it's required helps build trust with investors and gives you a clearer understanding of your own financial needs.'
Proof-read thoroughly
Think about getting someone to copy-check your report before you share it outside your business; typos do not look professional.
Build in flexibility
While it's important to have a plan, things change and you must be able to change your plans with them. Sarah Mathias, e-commerce strategist at This is Growth, said: 'I see businesses get caught up in sticking to their plan like glue. You have to be able to learn and adapt throughout your business journey. If you're too slow to adapt you lose.'
Presenting a business plan
Start strong
When it comes to presenting your business plan, it's crucial to grab attention from the outset. Ms Evans said: 'Your opening should clearly explain what the business does, who it is for, what impact it creates and what the opportunity is.'
Sell a narrative
Remember that while numbers are important, you must not underestimate the power of narrative – your history and how you've come to make this business plan. Ms Evans added: 'Tell the story, don't just state the stats. Why this business? Why now? What's your vision? When you're excited and aligned, it comes through in every word.'
Be professional, but human
'People don't just invest in ideas,' explained Ms Evans. 'They invest in energy, conviction and leadership. Ensure your plan reflects your personality and passion, as well as your strategy.'
Know your numbers
Make it your business to know your numbers inside out. Nothing undermines a pitch faster than uncertainty over your own financials.
Leanne Gunns, an accountant at The Profit Hero, a firm which supports business owners who are growing their ventures, said: 'Making sure you are confident with the numbers will ensure that you are able to present the facts with conviction and back up your plans with tangible data. Preparation here is key.'
Lead with impact
Use visuals, charts, graphics and product shots, as people remember what they see, not just what they hear.
Keep your presentation tight
Mr Caan said: 'Stay focused on the big levers: problem, solution, market, team and financial upside.'
When presenting, stay calm. Speak slowly and clearly, showing confidence in your offering. Be prepared for tough questions, especially around cash-flow and scalability. Try to anticipate the things you may get asked and ensure responses are succinct, credible and evidence-backed.
Ms Clarke said: 'People invest in individuals who they know, like and trust, The presentation has to do exactly that. Start with what's in it for them and then show the value and the problem you are solving and why your solution is innovative and unique. Sprinkle all this with your back story, your why, your vision and the mission.'
Leave a summary
Finally, always leave behind a one-pager – your business in a nutshell. That's what decision-makers will keep hold of and share after you've left the room.