Business Plan Template (UK): What to Include and a Free Template

A plain-English UK business plan template for sole traders and small businesses. What goes in each section, from the executive summary to start-up costs, sales forecast, cash flow and break-even, plus the HMRC and Companies House points your plan should cover and a template you can copy.

By Tony Musso on Sat Oct 24 2026

A business plan is a written description of what your business will do, who it's for, how it will make money and what it needs to get going. If you're going self-employed or starting a small business in the UK, you don't need a glossy 40-page document. You need something honest that makes you think through the hard questions before you spend money, and that you can show to a lender, a partner or a business adviser if you need to.

This guide explains what goes in each section of a business plan, in plain English, then gives you a UK business plan template you can copy and fill in. It also covers the UK registration and tax points your plan should take into account, and what to expect if you apply for funding.

Why write a business plan

Many small business plans are never shown to anyone else. They're still worth writing, because they force you to check things you might otherwise skip:

• whether enough people want what you're selling, at a price that covers your costs
• how much money you need before you start, and how long it lasts
• how many sales you need each month to break even
• what you'll do if sales are slower than you hoped

If you're applying for a loan, the plan becomes essential. The government-backed Start Up Loans scheme, for example, asks applicants for a business plan and a cash flow forecast as part of the application. Banks and other lenders usually want to see both too.

What goes in a business plan

Executive summary

A half-page overview of the whole plan: what you'll sell, who to, why you, how much money you need and what you expect to earn. Write it last, once everything else is done, but put it first. Many readers will only read this part.

Business description

Describe your product or service, where you'll work (home, a unit, online, on the road) and your legal set-up. Most people starting out choose between being a sole trader and setting up a limited company:

• Sole trader. You and the business are legally the same. You register with HMRC for Self Assessment, file a tax return each year and pay Income Tax and National Insurance on your profits. It's simple to set up and run, but you're personally responsible for any business debts.
• Limited company. The company is a separate legal entity, registered with Companies House. It pays Corporation Tax on its profits, and as a director you have legal duties, including filing annual accounts and a confirmation statement. Your personal liability is usually limited, but there's more paperwork.

There's also VAT to think about: you must register once your turnover passes the VAT registration threshold, and some businesses register voluntarily before that. Our guide on how to become self-employed in the UK covers registration step by step, and how tax works in the UK explains Income Tax and National Insurance.

Market and competitors

Show you understand the market you're entering. Who are your main competitors, locally or online? What do they charge, what do they do well, and where do they fall short? Read reviews and ask potential customers what they use now. Then say plainly what makes you different: price, quality, speed, specialism or service.

Customers

Describe your typical customer in detail. A business-to-business plan might name the type and size of firm and who makes the buying decision. A consumer business might describe age group, location and what problem you solve for them. If you already have interest, such as pre-orders or a first client, mention it. Real evidence beats assumptions.

Marketing and sales

Explain how customers will hear about you and how they'll pay. That might be a website, social media, local advertising, word of mouth, marketplaces, trade shows or direct approaches to businesses. Include your pricing and how you arrived at it, and a rough idea of what marketing will cost.

Operations

Cover the practical side: suppliers, equipment, premises, insurance, licences or permits, how you'll deliver your product or service, and the systems you'll use for bookkeeping, invoicing and stock. If you'll be sending invoices, our UK invoice template guide shows what an invoice needs to include.

People

List who's involved and their relevant experience and qualifications. If it's just you, be honest about any gaps and how you'll fill them, whether that's a course, an accountant or a part-time helper. If you plan to hire, note when and what roles.

Financial forecast

This is the part lenders read most closely, and the part most people find hardest. It has four pieces:

• Start-up costs. Everything you need to spend before you open: equipment, stock, website, deposits, registration, insurance, initial marketing.
• Sales forecast. How much you expect to sell each month for the first year, based on realistic assumptions you can explain. Show your working.
• Cash flow forecast. Month by month, the money coming in and going out, and the balance at the end of each month. A profitable business can still run out of cash if customers pay late, so this matters more than profit in the early days.
• Break-even. The point where your sales cover all your costs. Work out your fixed monthly costs (rent, insurance, subscriptions), then divide them by the amount each sale contributes after its direct costs. That gives you the number of sales you need each month to break even.

Use cautious figures: it's better to beat a modest forecast than miss an optimistic one.

UK business plan template

Copy this into a document and replace the prompts with your own details.

```markdown [BUSINESS NAME] BUSINESS PLAN Prepared by: [Your name] Date: [Month, year]

1. EXECUTIVE SUMMARY

• What the business does:
• Who it serves:
• Why it will succeed:
• Funding needed (if any) and what it's for:
• Expected sales in year one:

1. BUSINESS DESCRIPTION

• Products or services:
• Where and how you will operate:
• Legal structure: [Sole trader / Limited company / Partnership]
• Registration status: [HMRC Self Assessment / Companies House / VAT]
• Start date:

1. MARKET AND COMPETITORS

• Market overview:
• Main competitors (name, price, strengths, weaknesses):
• What makes you different:

1. CUSTOMERS

• Typical customer:
• The problem you solve for them:
• Evidence of demand (enquiries, pre-orders, pilots):

1. MARKETING AND SALES

• Pricing and how you set it:
• Marketing channels:
• How customers will buy and pay:
• Marketing budget for year one:

1. OPERATIONS

• Premises and equipment:
• Suppliers:
• Insurance, licences and permits:
• Bookkeeping and invoicing:

1. PEOPLE

• Owner(s) and relevant experience:
• Skills gaps and how you'll fill them:
• Plans to hire:

1. FINANCIAL FORECAST

• Start-up costs (itemised): £[total]
• Funding sources: [savings / loan / other]
• Monthly sales forecast, year one: [attach table]
• 12-month cash flow forecast: [attach table]
• Fixed monthly costs: £[amount]
• Break-even point: [number of sales per month]

1. RISKS AND PLAN B

• Main risks:
• What you'll do if sales are slower than forecast:

```

For the cash flow forecast, a simple spreadsheet works well: one column per month, rows for each type of income and each cost, and a running bank balance at the bottom.

Tips for a plan that works

• Use plain English. If a friend outside your industry can't follow it, simplify it.
• Back up your numbers. Note where each figure came from, such as supplier quotes.
• Pay yourself in the forecast. Include what you need to live on, or the plan won't reflect reality.
• Review it regularly. Compare actual figures with your forecast every month or quarter and update the plan.

Freelancing is often a lighter-weight way to start, and our guide to freelance work in the UK covers how people build up clients before going all in.

Not sure self-employment is the right move? Career Compass matches your interests, personality and strengths to UK careers, including ones that suit working for yourself.

Take Career Compass

Frequently asked questions

If you are weighing up options, our guide to choosing a career test explains what a good one tells you and what it cannot.