Free business plan template — and how to write yours

If you’re ready for the challenge of writing a business plan — congratulations. It’s time to take all those brilliant ideas swirling around your head and give them a proper home. 

While it might be one of those tasks that keeps getting nudged down your to-do list, writing a business plan is not as complicated or intimidating as it sounds.

Think of it as the blueprint for your business — it’s the plan for how you’ll grow. It’s also a helpful way to gauge whether your idea has legs. 

Plus, doing a business plan is a proven way to give your business a competitive edge in the UK market. Research from the University of Edinburgh Business School shows that entrepreneurs who formalise their idea into a business plan are 16% more likely to succeed. 

With that in mind, why not download our free business plan template? It’s packed with helpful tips on how to write a business plan and guidance for first-time founders, ensuring you stay focused for the first few years of your business journey.

Key takeaways

• A business plan isn’t legally required, but it can help you make better decisions and secure funding down the line
• It forces you to check the financial viability of your idea, and it acts as a roadmap to business success 
• Business plans are split into core sections covering everything from your products to your financial forecasts

A business plan is a formal document outlining your company’s goals, the strategies for reaching them and the financial requirements to get there. It acts as your strategic roadmap, covering everything from your company vision and operations to your market position and financial projections.

For a micro-business, your business plan has one main job: to give you clarity and confidence.

It’s your personal opportunity to prove that your idea is sound, that there’s a clear market for it, and, most importantly, that it can generate profit.

A business plan doesn’t have to be a literary masterpiece (but it can be if you like). It just needs to be a realistic, working document that you can adapt as you go. Think of it as your company’s north star, guiding you along the journey and providing focus when you need it. 

You aren’t legally required to have a business plan before you start trading but writing one is proven to increase your chances of success.

Research from Upmetrics shows that businesses that have a formal business plan grow 30% faster than those without clear objectives. And businesses that engage in structured planning tend to see greater increases in sales.

Here’s why writing a business plan is so helpful for first-time founders:

• Reality check: It forces you to look at your competition and your costs. You might be convinced your idea is great, but until you can back it up with numbers and market insights, it is, unfortunately, just a good idea
• Saves time and money: Doing a business plan involves listing your startup and ongoing expenses. It includes everything from insurance to stationery and it’s a useful way to categorise your expenses into: what you must purchase, what you can delay purchasing and what you can avoid purchasing altogether
• Provides focus: When you’re starting a business, it’s easy to get distracted. Your business plan acts as an anchor, keeping your efforts focused on the activities that help to build your business and eventually make you money
• Essential for finance: If you ever decide to apply for a business loan, funding, or even a mortgage based on your business earnings, lenders usually ask for a written business plan

We’ve created a free business plan template specifically for UK sole traders and small limited companies. 

Writing your business plan is your first official step towards launching a successful business, so congratulations on getting this far. We’re excited to see where this step takes you. 

> Get your free business plan template 

Now that you’ve downloaded the business plan template, let’s look at what it includes. 

You’ll see that it’s divided into nine sections. Each section is distinct, shouldn’t be skipped, and comes with helpful prompts — all designed to help you write the best business plan possible. Think of it as a living document that grows with you — you’ll update it as your pricing or target audience evolves over time.

Although you’re just getting started, it’s a good idea to think about how you want your business to come across.  For example, the language and tone used in your business plan should ideally match your brand voice. If you’re not sure about this yet, don’t worry, just ask yourself: 

• Is my brand formal and professional? 
• Is my brand casual and friendly?
• Is my brand smart and witty? 

Wherever you land, try to reflect this in your writing. The same goes for any imagery you might use in your business plan. If you use product photos, diagrams or infographics, consider how you can match these to your brand style.

Now, let’s jump into the sections. 

This includes your executive summary, company description, goals and objectives. 

Think of this as the highlights reel of your business plan. While it appears first, most founders find it easier to write this last. It should be a concise explanation of what your business does and how it’s going to be successful.

Tip: If you were showing your business plan to a bank manager or investor, this is the part that needs to grab their attention. Think of it like a pitch. Keep it high-level — focus on your big goal and the clear gap in the market you’ve found

This includes your personal summary, like your previous job roles, education and any relevant skills and certifications. 

This is your chance to shine so don’t be shy! List your previous roles, education, and any soft skills like project management or sales that give you an edge. Detail your ‘why’ behind your startup — your passion is a huge asset.

For example: If you’re starting a graphic design business, mention all your specific experience and expertise in brand identity, design, and client management. A written business plan feels much more grounded when the reader can see a direct link between the founder’s skills and the business’s goals.

This includes an overview of your chosen market’s current trends and insights, a competitor analysis, and a SWOT (strengths, weaknesses, opportunities, and threats) review.

This section proves you’ve done your homework. You need to show that there’s a real appetite for what you’re offering. Research the market you want to enter, find stats and figures to back up your opinions and identify the clear gap in the market that your business can fill. 

Tip: There are plenty of free tools out there to help with market research, like Google Trends or the Office for National Statistics (ONS)

This includes your ideal customer’s demographics, persona, pain points, and what channels they use online. 

Make sure you know who you’re marketing to and don’t make assumptions about them. You’ll want to go deep into your ideal customer’s persona. How do they speak? What language will resonate with them? What keeps them up at night? 

Understanding where they spend their time online (e.g. TikTok, Instagram, LinkedIn) will help you tailor your message so it lands perfectly every time.

This includes details on what you’re selling, how you sell it and your pricing structure. 

Describe your products and services in detail and explain your pricing structure — including competitor prices for context, your ideal customer’s economic situation and any other reasons why you’ve chosen that price. 

Make sure you’ve accounted for your time as well as your materials. It’s helpful to look at business plan examples in your industry to see how others package their services, but remember: your unique value is what will keep people coming back. 

Tip: Here are three fictitious sample business plans from ACCA — an airport cafe, a stone importing business, and a fuel efficiency business. You can see how each business has packaged up their services

This includes what channels you’ll use, the content you’ll create and your marketing budgets. 

Now that you know who your customers are, map out how they will find you. Detail your chosen channels, whether that’s Instagram, local ads, or email marketing and set a realistic budget and production timeline for your content. 

If you think you’ll need assistance here, like a freelance copywriter, designer, or social media consultant, include their rates in your budget.

Tip: Separate your launch activities and your ongoing sales and marketing costs so it’s clear what you need to budget for come launch time

This includes the nuts and bolts of your business: legal contracts, business licences, equipment, any staff, software, and how you’ll deliver your products and services. 

This section is your business plan’s engine room. List everything needed to keep the lights on. Include details on how you’ll handle your business admin, finances and service logistics. 

Tip: Setting up a dedicated business current account is a key part of your operations — it’s a good way to keep your business and personal finances separate. If you decide to set up a limited company, you’re legally obliged to do this anyway

This includes your projected revenue for the first 1-3 years of your company’s life.

You want to give a clear idea of when you’ll hit your break-even point — when your sales cover all your costs. While it’s just an estimate, writing a business plan with a solid forecast, that’s based on real numbers, helps you stay in control of your cash flow and ensures you can afford to grow when the time comes.

Make sure you include a detailed overview of your finances, including cash flow statements, expenses, projected revenue, and whether you plan to apply for a loan or funding. Also, be honest about things that might slow you down — like if your business relies on a single supplier or a specific season (like Christmas).

Tip: Don’t forget the VAT threshold. If you predict to make over £90,000 (the current VAT threshold) in the next 12 months, you’ll need to factor VAT registration into your costs

This includes defining and describing the three biggest threats to your business and a contingency plan for each.

Even the best entrepreneurs hit speed bumps, so it’s wise to identify the three biggest threats to your success right now. It could be a sudden rise in supplier costs or a shift in customer demand. Creating a contingency plan for each shows you’re a serious founder. 

Having a written business plan that covers the what-ifs should make you feel more confident about whatever challenges 2026 throws your way. 

Congratulations. If you’ve finished writing a business plan, you should be proud of yourself! You’ve given your business the strongest possible start. 

If your plan shows your idea is viable, you can take the next step towards launching right now:

1. Company name: If you’ve got a preferred company name in mind, you need to check it’s available to register with Companies House. You can use a free company name availability checker to do this
2. Form your company: If you’re ready to incorporate, our company registration service is quick and easy. Our team handle the Companies House application for you and you’ll be ready to trade within 24 hours 
3. Get your finances sorted: Whether you’re a sole trader or a limited company, keeping your business money separate is the number one rule for simple tax. Our smart business current account is built for founders like you, making invoicing and expense tracking simple

If you’re looking for further small business resources, head over to our resource hub. Here you’ll find all the latest business guidance, as well as tips and insights to help you start, run and grow your business. Best of luck, we know you can do it.
 

While there are many sections, you can simplify the structure into four main parts: 1. The Idea (your product or service), 2. The market (target audience and competitors), 3. The execution (marketing and operations), and 4. The money (costs and financial forecast).

The primary purpose is clarity and focus. Writing a business plan forces you to solidify your strategy, identify weaknesses before they become problems, and measure your progress. The secondary purpose is to act as a formal document if you ever need to apply for funding or a loan.

Yes, for personal use. Having a one-page summary that includes your key building blocks is great for your own use — you can even start with this before developing it out into a full business plan. But if you ever apply for a loan or funding, lenders usually require a detailed business forecast, which is likely to be much more than a page.