We have written tonnes of business plans over the years, not just for ourselves, but also for our clients.

It is a common theme for clients seeking commercial and development finance that lenders request; a schedule of works, business accounts, proof of income, business bank statements, personal bank statements but also the all important, business plan! But why do they need a business plan? Simply put, lenders can find out alot about a client based on the business plan. The lenders can tell within minutes whether the business model will work, but it also tells the lender alot about the individuals and the business itself. Business plans tell a story, so it is important to make it a good one and one the lenders buy into!

So many people are in a rush to do these grand projects based on ego and forget to do their research, so a well written business plan is essential. Even if the lender doesn’t need it, we would recommend it to anyone if they want to grow a profitable business.

Here are some key areas, specifically related to the commercial and development finance world that we feel would add value to your business plan:

1. Work backwards from the goal: Getting started on a business plan is half the battle and we always say to brainstorm and road map your ideas and to start with the end goal first. Right down what the end goal is so you have the ‘vision’. Then from there work on the ‘Why’. Why are we doing it, why is it important.
2. The ‘Why’: There must be a reason why you are doing this. Is it to create a sideline revenue, create a legacy plan for you to retire early or is it there for your family to inherit. Whatever the reason make it clear as to ‘why’ you are doing it
3. Make clear what the ‘Need’ is: We think this is important, if you don’t have a need for it then why are you doing it. This links in nicely with the ‘why’. Be detailed, be specific and be clear. Essentially making it ‘stupid proof’.
4. What is your ‘What’: What is it you need to do to get to where you want to be. Consider equipment, machinery, staffing, finances, timescales. There are plenty of tools out there to help you create a robust ‘what’. This includes using the expertise of accountants, town planners, brokers, other business people. Utilise other peoples experiences.
5. Research: The internet is a fantastic tool. Gone are the days of going to a library, we have information at our fingertips within seconds! Do your research on the area you are looking to buy in, set up a business in or develop in. This is essential. This will help reduce project risk and profit risk. We would be looking at the commercial aspect of the location, the demographics, primary and secondary schools, history of the location and any plans set for the location which you may wish to develop property in or buy in.
6. Go above and beyond: Look, we aren’t silly, asking you to develop a business plan is essentially simple, but it can be scary for some. BUT, because of the way we work as a business and based on our years of advising and client experience we know and understand just how valueable a strong business plan is. It is often the case that clients reflect on their business plan and find flaws, cost savings or figure out that the ‘Why’ and the ‘need’ has changed.

Our final piece of advice is not to get too caught up too much with how the business plan looks. Using fancy graphics etc can be time consuming. We would recommend making it; clear, easy to read and factual.

If you would like more information about how to write a business plan then please feel welcome to contact our team on 0117 251 0563. We can support you in creating a successful business plan for all lending needs.

Don’t forget to follow us on instagram @ukdevelopmentfinance