Whether you’re aiming for angel investors, venture capital, or a small bank loan, creating a business plan is your first step toward securing funding. It’s not just a pile of numbers, it’s the story of your business, covering your mission, model, market, and what makes you unique. Investors don’t just look at balance sheets, they look at people, potential, and planning.

In this blog, we’ll walk through all the key elements you need in your plan. It’s easy to understand, packed with actionable tips, and tailored to UK small business owners wanting to make a strong investment case.

1. Why a Strong Business Plan Matters

It may seem obvious that creating a business plan helps secure investment, but it does much more than satisfy funding requirements:

• Message clarity: It helps you articulate your idea and vision in a clear, compelling way.
  

• Decision-making tool: It forces you to think about pricing, margins, marketing, and your assumptions.
  

• Risk mitigation: It highlights potential challenges and shows you’re prepared.
  

• Investor comfort: It gives investors confidence that you’re serious, organised, and ready to execute.

Without a concrete plan, you’ll struggle to answer investors' questions like: How do you make money? Who’s your customer? How will you scale? These are basic due diligence points… but make or break trust.

2. What Investors Really Want to See

Before you begin creating a business plan, understand your audience. Investors care about:

1. The Problem & Solution
   What problem are you solving? How big is that problem? How does your product or service solve it better than anything else?
   

2. Customer & Market
   Who is your target customer? What size is your market (TAM, SAM, SOM)? How did you arrive at those figures?
   

3. Business Model
   How will you make money? Subscription? Transaction fee? Wholesale? Be specific: price points, sales channels, cost of acquisition, lifetime value.
   

4. Go-to-Market Strategy
   How will you reach customers? Organic, paid, partnerships, events? What marketing and sales tactics will you use?
   

5. Traction & Milestones
   Proof of concept matters. Showcase sales, pilots, partnerships, downloads, anything that shows validation.
   

6. Team
   Who are the people making it happen? Highlight their experience, expertise, and why they’re uniquely qualified.
   

7. Numbers
   Revenue projections, costs, cash flow, funding needs, and milestones. Show you know your numbers and that your assumptions are realistic.
   

8. Risks & Mitigations
   Be honest: what could go wrong? How will you handle challenges from competition to regulation?

These sections form a structure any investor expects and they align with the core parts we’ll elaborate next.

3. Structure for Creating a Business Plan That Wins

Here’s a proven framework to shape your plan. Feel free to turn this outline into slides or a PDF and just tailor it to your audience.

Executive Summary (1–2 pages)

Summarise the critical points:

• The mission: “We enable X to do Y faster/cheaper/better.”
  

• The problem: “X needs Y, but Z is broken.”
  

• The solution & market: “Our product targets a £X billion UK opportunity.”
  

• Ask: “We’re seeking £X for X% equity to achieve Y milestones.”
  

• Why us: “We have traction, expertise, and a unique position.”

Keep it punchy. This is what investors read first.

Problem & Solution (1–2 pages)

Go deeper:

• Define the problem with customer quotes or case studies.
  

• Explain your solution clearly, with visuals or screenshots if possible.
  

• Detail your value proposition and how you outperform competitors.

Market Opportunity (2–3 pages)

Answer:

• How big is the market? (UK, European, or global figures)
  

• Who is your ideal customer?
  

• What market trends support growth (e.g., digital transformation, sustainability)?

Cite reputable sources… government stats, industry groups, market reports.

Business Model (2 pages)

Explain:

• Revenue streams and pricing model
  

• Customer acquisition costs vs. lifetime value
  

• Sales cycles, gross margins, distribution channels

Don’t be abstract. Use numbers and backup assumptions.

Go-to-Market Strategy (2 pages)

Detail:

• Marketing channel mix and budgets
  

• Sales process: TSA, inbound, ecommerce, B2B pipeline
  

• Partnerships or collaborators
  

• Customer support, retention, upsell strategies

This shows you know how you'll reach and convert your audience.

Traction & Milestones (1–2 pages)

Highlight progress:

• Sales/contract wins, pilot results, online metrics
  

• Milestones achieved and key future targets
  

• Fund allocation plan: staffing, marketing, tech, operations

Use visuals for timelines and metrics.

Team & Advisory (1 page)

Introduce:

• Founders’ backgrounds and key hires
  

• Relevant advisors or board members
  

• Coverage gaps and hiring timeline

Investors bet on people as much as ideas.

Financial Projections (3–4 pages)

Must include:

• Profit & Loss, cash flow, and balance sheet for 3–5 years
  

• Unit economic assumptions
  

• Scenarios: base vs. best/worst case
  

• Funding needed, use of funds, and runway
  

• Exit strategy: acquisition, IPO, or others

Present projections honestly, highlight key assumptions.

Risks & Mitigation (1 page)

Clarify:

• Competition
  

• Regulation or legal risks
  

• Execution challenges (hiring, scaling tech)
  

• Market risks

Explain how you'll protect against each.

Appendices (optional)

For deep-dive info:

• Market research links
  

• Technical architecture
  

• Customer feedback
  

• Detailed spreadsheet logic

It supports claims without cluttering the main document.

4. Tips Every Plan Creator Should Know

Keep it Lean, Keep it Real

Investors don’t want 80 pages. Aim for 15–20 concise pages or 10–12 slides. Stick to essentials.

Use Real Data & Visuals

Charts and tables help. Investors can scan numbers in seconds so make them clear and compelling.

Tell a Cohesive Story

Each section builds the narrative. Avoid contradictory statements, numbers, market data, and strategy must align.

Be Transparent

Half-truths or over-optimism get noticed. Vision is great, but realism builds trust.

Tailor for the Audience

Adjust your tone and depth based on audience… angel, VC, bank, competitor partner. Highlight relevant elements.

Practice Your Pitch

Even the best plan sells better when you can explain it clearly. Have your 60-second pitch ready, then drill down into each slide/question confidently.

5. Post-Plan: Investor Engagement & Follow-Up

Creating a business plan is just the start. Closing investment depends on relationships and follow-through.

Warm Introductions

Cold emails rarely work. Seek introductions via mentors, accelerators, alumni, LinkedIn connections.

Share Brief, Personal Emails

Send a short email, one or two lines of context - then attach your exec summary or slide deck. Offer a quick chat.

Build a Funnel

Maintain records of those you’ve reached: interested, in due diligence, or passed. Follow up and update them regularly.

Due Diligence Prep

Be ready for tough questions: your track record, assumptions, contracts, forecasts. Organise documentation in advance.

Terms, Valuation, & Agreements

Don’t go it alone. Get legal advice to structure equity, SAFE, convertible note, or term sheet properly. Terms matter long-term.

6. Common Mistakes When Creating a Business Plan

• No clear value proposition: You must articulate “why you.”
  

• Overestimating growth: Unrealistic projections raise red flags.
  

• Underestimating costs: Build buffer for marketing, hiring mistakes, software.
  

• Lack of customer feedback: Actual user insights matter.
  

• Ignoring competition: Know who else is solving the problem.
  

• No exit plan: Investors want to know how they make money.
  

• Skip financials: Almost fatal error; you need at least 3 years of projections.

7. Resources to Help You Build a Better Plan

• Start-Up Loans (British Business Bank): Free templates & business advice
  

• HMRC & Companies House: For market research & benchmarking
  

• Startup accelerators (e.g. Seedcamp, Entrepreneur First): Mentorship and pitch prep
  

• Local Growth Hubs: UK-wide support for business planning and finance
  

• Online courses: Coursera, Udemy – covering business strategy and plan writing

Creating a business plan isn’t just an investor hurdle, it’s the foundation guiding every step in your business journey. Even if you already launched, revisiting your plan periodically helps you stay aligned, adaptable, and ready for growth.

So take the time. Revisit your market assumptions. Shop for the best data. Engage with advisors. Iterate your plan until it tells a crisp, confident, credible narrative.

This is how you build trust with partners, with investors, and most importantly, with yourself.

Ready to turn your idea into investment-ready pitch? Get hands-on support building your plan, projections, and investor narrative. Schedule a call today, let’s make your vision fundable. Give us a call and let's talk it through ➡️ https://link.feacreate.com/widget/bookings/sfm-15-min-discovery-call