How to Write a Business Plan That Attracts Funding and Drives Growth
- Sarah Edwards
- Aug 11
- 4 min read
With 36+ years helping UK businesses secure funding, we know what lenders like us look for. Discover how to write a business plan that opens doors to the finance your SME needs to thrive.
In This Guide
Why Your Business Plan Is Your Funding Gateway
Most business funding applications fail not because of a weak idea, but because of how it's presented. Whether you're seeking funds for growth, equipment, or working capital, your business plan is the key to unlocking finance.
At First Enterprise, our Investment Managers review thousands of business plan funding applications each year, and with 36+ years supporting UK SMEs, we know what makes lenders say "yes."
This guide on how to write a business plan reveals the essential elements that can transform rejected applications into funded opportunities.
What Lenders Really Want in Your Business Plan
Different lenders assess business plans in different ways. Some use automated scoring systems that evaluate applications against fixed criteria, while others take a more personal approach. At First Enterprise, we believe in the human touch - our Investment Managers take time to understand your business story and assess five critical factors:
How to Write a Business Plan: Essential Components
Creating an effective business plan requires more than filling out forms. Each section tells part of your story while providing the concrete information lenders need. The government's business planning guidance provides a framework, but here's what lenders specifically look for in SME business planning:
1. Executive Summary: Your 30-Second Pitch
Your executive summary is often the only section lenders read initially. Make sure you include:
2. Market Analysis: Proving Demand Exists
Lenders need evidence of genuine market demand. Your market analysis in your business plan for growth should include:
Use authoritative sources like ONS business statistics and Federation of Small Businesses research to support your claims.
3. Business Model and Operations
Demonstrate how your business creates value:
Your financial section is crucial for business funding success. Understanding terminology is essential, for key terms - refer to the British Business Bank's - business finance glossary.
Strategic Planning Elements That Drive Growth
Your business plan template should position your company for sustainable growth through strategic SME business planning.
Setting SMART Growth Objectives
Effective business plan funding applications must include SMART (Specific, Measurable, Achievable, Relevant, Time-bound) objectives. For a detailed breakdown, see this FSB guide 'How to write SMART goals for small businesses'.
Risk Management and Contingency Planning
Lenders appreciate applications acknowledging challenges. The British Business Bank's risk management guidance provides frameworks for identifying risks.
Common Pitfalls That Kill Business Funding Applications
Even well-intentioned business owners make critical errors when learning how to write a business plan. Avoid these mistakes:
Pitfall 1: Unrealistic Financial Projections
The British Business Bank emphasises that demonstrating repayment capacity is fundamental when applying for a business loan. Unrealistic cash flow predictions remain a key reason for business plan funding rejection.
Pitfall 2: Insufficient Market Research
Pitfall 3: Weak Management Team Presentation
Lenders invest in people as much as ideas. Strengthen your business plan template by:
Real Life Example: £150,000 Growth Funding Secured
Woodleigh Healthcare, a specialist care organisation, struggled with funding rejections despite their track record since 2014. Working with Investment Manager Shaun Tuhey, First Enterprise provided £150,000 through the Midlands Engine Investment Fund II.
This demonstrates how our human approach unlocks potential that automated systems miss - for businesses in essential service sectors.
Industry-Specific Business Plan Considerations
Different industries have unique requirements for business plan funding. The GOV.UK Finance portal allows you to filter support by industry, stage, and region.
Key Data Sources for Your Business Plan Template:
Manufacturing and Engineering
Manufacturing business plans must demonstrate understanding of operational processes, safety, and compliance:
Professional Services
Healthcare and Childcare
Ready to Transform Your Business Plan?
Creating a compelling business plan funding application requires understanding what lenders value and how to present your opportunity effectively.
At First Enterprise, our experienced Investment Managers offer 1-to-1 support, guiding hundreds of businesses through loan applications. With 36+ years supporting UK businesses, we provide tailored SME business planning advice. Our human approach recognises potential that automated systems miss.
