If you’re starting a business, you’ve probably heard you need a business plan.
But what actually goes in one, and how detailed does it need to be?
The truth is, a business plan doesn’t need to be long or filled with corporate buzzwords.
It just needs to make sense to you, to investors, and to anyone helping you bring your idea to life.
Here’s what every good business plan should include, explained in plain English.
What your business does (and why it exists)
Start with the basics: what your business does, and why it matters.
This section doesn’t need to be poetic or overthought, just explain your idea clearly.
What problem are you solving? Who are you helping? What makes your approach different or better?
Example:
“We help small businesses manage their social media by creating affordable content plans that save time and build consistency.”
That’s it. Clear, simple, human.
Your goals
Next, set out what you want to achieve.
This could be short-term (like launching your website or making your first 100 sales) or long-term (like expanding into new markets).
Keep your goals realistic and measurable. “Grow revenue by 25% in the next year” is better than “make more money.”
Your goals will give your plan direction, and help you measure progress later.
Who your customers are
Every business serves someone. Describe who that is.
Who will buy your product or service? What do they care about? Where do they spend time online?
You don’t need fancy demographics, just a clear picture of the people you’re helping and what they need from you.
💡 Foundrs tip: If you can explain your customer in one sentence, you understand your market. If it takes a paragraph, narrow it down.
4. What makes you different
There are always others offering something similar and that’s okay.
What matters is explaining why someone should choose you.
This could be your pricing, your speed, your experience, or the way you deliver your product.
Be honest and specific, vague statements like “we’re the best” don’t help.
Clarity beats cleverness every time.
Your plan to reach customers
How will people find you?
Your marketing plan can be simple: outline the main ways you’ll reach your audience, social media, email, paid ads, events, partnerships, or referrals.
You don’t need a long strategy. A few practical steps are enough:
- “Post three times a week on LinkedIn.”
- “Run a small ad campaign to test pricing.”
- “Email new customers with a discount code.”
Keep it doable.
What you’ll charge and how you’ll make money
Explain your pricing and revenue model, how you’ll actually make money.
Are you selling a one-time product, a subscription, or a service?
Be clear about your costs too: materials, suppliers, marketing, and tools all add up.
This section doesn’t need detailed forecasts yet, just an honest outline of how your business will make a profit and stay sustainable.
Basic financial plan
Every business plan needs a simple look at the numbers.
Include:
- Startup costs (what you need to get going)
- Ongoing costs (rent, tools, marketing)
- Sales projections (your expected income)
You don’t need perfect figures. What matters is understanding roughly how much money you need to start and how you’ll cover it.
If you’re not confident with numbers, this is where an accountant or advisor can help, Foundrs can connect you with one through our trusted partners.
Who’s involved
List the people who’ll help you build and run the business, directors, co-founders, or advisors.
If it’s just you for now, that’s fine. Simply explain what roles you’ll take on and where you might need help later.
This shows you’ve thought about the bigger picture, even if you’re starting small.
Risks and challenges
Every business has them.
Be upfront about what could go wrong (supply issues, competition, or changes in demand) and briefly explain how you’d deal with them.
It shows you’re realistic and prepared, not naive.
💡 Tip: Investors don’t expect a risk-free business; they just want to see you’ve thought things through.
Your next steps
End your plan with what happens next.
Do you need to raise money? Register your company? Build a prototype?
List the 3 - 5 actions that will move you forward.
This turns your plan into a to-do list, something you can actually use, not just file away.
In Summary
A business plan isn’t a document for investors, it’s a tool for you.
It helps you think clearly, set direction, and make decisions with confidence.
You don’t need pages of charts or buzzwords, just honesty, clarity, and a clear idea of how your business will work in the real world.
Foundrs helps you take that plan and turn it into action, from registering your company to staying organised as you grow.
FAQs
Do I need a business plan to register a company?
No, you don’t need a business plan to register your company with Companies House. But having one helps you stay focused and organised once you start trading. It’s your roadmap, not a legal requirement.
How long should a business plan be?
There’s no rule. A good business plan can be as short as a few pages. The goal is clarity, not length, include what matters, explain it simply, and skip the filler.
What’s the most important part of a business plan?
Clarity. Whether you’re describing your product, your customers, or your finances, make sure it’s easy to understand. A plan that’s simple and honest is far more useful than one filled with buzzwords.
Do I need financial forecasts in my plan?
A simple overview is enough when you’re starting out. Outline what you’ll spend, how you’ll make money, and what success looks like. You can add detailed forecasts later if you’re seeking funding.
Should I update my business plan?
Yes, treat it as a living document. Review it every few months or whenever something changes in your business. It should evolve as your goals and customers do.
Who is a business plan for?
Mainly you. It’s a tool to help you think clearly and make better decisions. If you’re looking for investors or loans, they’ll want to see it too, but it should always make sense to you first.
What’s a simple structure for a business plan?
Start with:
- What your business does
- Who it helps
- How you’ll make money
- Your goals
- Basic financials
- Your next steps
Do I need professional help to write a business plan?
Not necessarily. Most founders write their own plans using plain language. If you need help with numbers or structure, an accountant or advisor can review it for you.
Can I write a business plan without knowing exact costs yet?
Yes. Start with estimates, it’s about understanding direction, not precision. As your business grows, you’ll update the numbers. The important thing is to think about what you’ll need and why.
What should I do after finishing my business plan?
Put it into action. Register your company, set up your essentials, and start building momentum. Foundrs helps you take the next step and helps you stay organised as you grow.
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