Drafting a business plan
Produced in partnership with DG Legal
Drafting a business plan

The following Practice Compliance guidance note Produced in partnership with DG Legal provides comprehensive and up to date legal information covering:

  • Drafting a business plan
  • What is a business plan?
  • Why have a business plan?
  • Who should write the plan?
  • What should be included in the plan?
  • Budget and cashflow forecast
  • Action plan
  • Monitoring and review

This Practice Note provides information about preparing and implementing a successful business plan.

What is a business plan?

A business plan is a document that explains how a firm will achieve its objectives.

Precedents that can be used as a starting point to prepare the firm’s business plan are available. See Precedent: Business plan—consumer for consumer law firms or Precedent: Business plan—commercial for commercial law firms.

Why have a business plan?

Business planning confers several benefits to the firm, eg:

  1. increasing the likelihood of achieving the firm’s objectives

  2. demonstrating to others, eg banks, that the firm is moving forward

  3. keeping management and staff focused

  4. increasing the likelihood of recruiting and retaining talented staff

  5. increasing profitability

Business planning is a key consideration when starting a new business. However, all firms should think of business planning as an evolving process which should be reviewed regularly in order to measure progress and encourage others to invest time and effort in the business.

Who should write the plan?

Traditionally and most commonly, the management and owners of the firm are the authors of the business plan. The firm’s COFA will usually have a central role in the preparation of the plan. Consideration must be given to involving all staff in discussing and agreeing the main parts of the business plan, particularly in

Related documents: