New Business? Do you need a Business Plan?

So you’ve got a new business idea. You’re keen to burst onto the scene.

However, as with most things in life, preparation is everything. And writing a business plan is the best way of really focusing on what you’ve got to offer. It’s the vital first step that every entrepreneur – however experienced - should take. It forces you to get to the heart of your concept; to spell out very precisely what your proposed business is about, how it will work, what it needs, and how it will perform and grow.

Although it’s not mandatory, having a well-drafted plan, shows that you mean business. If you’re looking to encourage others to join you, or if you need investment or a loan, this will be essential. And it’s really important from a legal perspective, too. One of the major decisions to be made long before you launch your business is about its structure. Will you be a sole trader, a limited company, a partnership? Each of these entities is unique, and you should take specific advice on the best option for you. Your solicitor will want to know about the ins and outs of the business you’ll be running, your existing situation, your plans for growth, your income forecasts, and your objectives.

There are other legal points to consider. Your business plan should cover the way in which you will interact with and manage creditors and debtors, for example.  It should also cover regulatory issues, including those around any qualifications and licences.

It should also take account of any restrictions on your ability to work within the sector, area, and with clients or former colleagues. If you are setting up the business after having been employed, it’s really important that you check your employment contract for any restrictive covenants. These are a way of protecting an employer by limiting a departing employee’s ability to work for competitors, to entice colleagues away, to deal with clients for a certain period of time. In practice there are significant restrictions that can be put on a person’s post-employment freedom, and while not all will be enforceable, good legal advice on yours will help you put in place a strategy – set out in your business plan - that ensures you stay within the law.

However advanced your plans are for your new business, a good corporate and commercial lawyer will add real value to the process. From helping draft your business plan, to fine-tuning one you’ve already prepared, it’s support that every start-up should call on.

Contact our Business Team today on 01264 353411, email business@bsandi.co.uk or through our no obligation enquiry form which you will find and can complete, online and we will be happy to assist you.