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business plan uk essays

How to Write a Business Plan – A Step By Step Guide

Business Plan Components

  • peachyessay
  • May 4, 2020
  • Blogs , Business Writing Guideline

Crafting a business plan can be a challenging task, especially if you have inadequate skills and experiences. In this guide, you will get lots of insights on how to it. In this article we discuss how to write a business plan.

What is a Business Plan?

A business plan is a summary of a firm’s operational and financial objectives with an elaborate roadmap and budget, showing the goals that are to be achieved. This document is vital to the success of both startups and existing companies.

The Components of a Business Plan

A business plan is usually created to guide your enterprise or to help you raise money from investors. Before you craft this piece, it is vital to understand its components. The following is a highlight of some of its elements.

Business Plan Components

Executive summary

An executive summary is the first section that people will read in your business plan. It is an abstract with brief information regarding the content of the business plan. This section comes first in the document, but it is prepared last.

An executive summary is meant to inform the audience about your business and highlight what you are looking for from the clients. Sometimes, investors only need an executive summary to evaluate your business . Therefore, ensure that it briefly captures the crucial information in the entire document.

Abstract ought to be concise and should entail only the critical parts of your business. Usually, this section is written to occupy between 1-2 pages.

The following is a description of the elements of a winning executive summary.

One Sentence Business overview

A sentence overview should be written after your business name, and its purpose is to highlight the essence of your business. A business overview is your value proposition, and it describes what your organization does.

The problem

The problem is the needs of the market that you are about to address. Briefly highlight the issue you are solving to give a better perspective to your audience.

The solution refers to the product or service you are providing to the market. Therefore, demonstrate how you will solve the problem.

Target market

Indicate the details of the clients you are going to serve. For instance, mention the type of customers and their estimated number.


Indicate whether there are people providing solutions to the target market. Identify and provide an overview of the competition.

Company overview and team

Provide details regarding your team and explain why you think you are better placed to take the idea to the market. It is crucial to note that sometimes, investors consider the team more than the idea and, therefore, ensure that you have the right people on board.

Financial Summary

In this section, note the key points of your financial plans. For instance, use charts to show your projected sales, expenses, and profits.

Funding requirements

If you are crafting a business plan to get a loan from funders, indicate the amount of money you require to finance your business activities.

A milestone is one of the key aspects that investors will want to look into. Therefore, it is essential to mention what you have achieved and your targets.

If you are composing a business plan for internal business use, you may avoid the executive summary or reduce its scope. Therefore, include aspects like the management team , funding requirements, and milestones. In this case, the executive summary should be considered as an overview of the organization’s strategic direction.


In the opportunity section, highlight what you are offering to the market, or the problem you intend to solve. It is vital to indicate how your products or services fit into the existing market.

In this part, demonstrate how your solution to the problem is different from the existing competitors, and provide more details on how you plan to enhance your offering afterward.

Pinpoint the problem your potential customers are facing, and show why the current solutions haven’t managed to address them. In this section, it is vital to highlight the answers to your clients’ problems. The solutions refer to the products and services you intend to offer .

It is essential to highlight your potential future plans to show the investors where your business will be in the long term. However, avoid including too many long-range plans that you might fail to complete.

In the execution section, mention how you will convert your plan into a business. It is vital to highlight the marketing or operation strategies you are intending to use to achieve your objectives.

Also, indicate how you intend to reach your target markets, your selling strategies, and pricing plans. Note that a marketing plan will be useless if you don’t define your potential customers well.

Company summary

Use this section to highlight the company’s corporate philosophies, such as mission, vision, company location, and core values. Also, indicate the organization’s team or show how you are planning to hire if you are starting a new venture. This section is very vital, especially to investors who may want to know the team behind the business.

Highlight a short bio of each team member, and show whether they have the right skills and experiences to turn an idea into a business.

Market analysis

The market analysis encompasses an in-depth evaluation of the industry, market, and competitors. The following is a description of the constituents of your market analysis .

Industry description

Describe the industry’s past and future outlooks. Indicate the key industrial players.

Overview of the target market

Highlight key aspects of your target market. Provide an estimated figure on the number of clients and their geographical distribution.

Target market size and growth

Indicate the size of the target to let readers understand how big it is. Based on the current size of the market, provide its projected growth.

The potential of your market share

Indicate the magnitude of market share you are expected to gain in the targeted area.

Before you price your products, conduct research to come up with the best estimates of pricing them.

Indicate any barrier that may inhibit your market entry , such as government regulation or lack of human resources.

Research on competition

Investigate your competitors’ strength and weaknesses, their market shares, and any barrier they present.

Marketing and sales plan

Under this section, it is vital to highlight how you will market and sell your products. The following is a description of the components of a market and sales plan.


The way you present your product or service determines how the customer will get attracted to your offering. For instance, if the service you are providing guarantees quality , you will stand out against your competitors.

After positioning your offering, it is vital to indicate how you will inform customers about the product or service you are selling. Indicate any plan you have in marketing the products, your sales force, and the strategy of sale.

Financial plan

Note that without a financial forecast, your business plan is incomplete. In the financial plan, ensure you include the income statement , balance sheet, cash flow statement, and sales forecast.

An excellent financial plan must have monthly sales and revenue forecasts for the first year and annual projection for the next 3-5 years.

If you have been running a business for some time, you will use financial information from past performance . However, if you have no historical data, it is advisable to use financial projections. These projections might either be derived from past data or determined from the analysis of the competition in the industry.

Another essential aspect of your financial planning is funding needs. Indicate whether the source of your funds is equity or debt. Under funding, you need to include the following: the amount of funds, future funds, and the purpose of the fund.

It is crucial to use visual illustrations, such as graphs and pie-charts, to highlight the financial position of your business and its plans.

The appendix section is used to provide supporting documents that may be required by the consumers of your business plan. This part is essential in boosting the credibility of the information in the project. The commonly used documents include resumes, permits, licenses, and any other legal material.

Business Plan Example

Benefits of a Business Plan

The following is a description of the benefits of a business plan.

Attract investors

A business plan introduces your ideas to potential investors, hence wooing them to invest in your company.

Strategic focus

With a business plan, entrepreneurs can focus on products or services that match the target market.


Through a business plan, you can prioritize on the right and most crucial things. Planning enhances an appropriate allocation of time and other resources in areas that need maximum attention.

Management of change

Excellent planning can enable you to review what is targeted versus the actual to determine whether you are making progress or not.

To enhance accountability

The essence of planning is to set expectations and find out whether results are being achieved as per the targets.

Cash flow management

Proper planning is crucial for the management of your cash flow. For instance, through it, you can identify slow-paying clients and take actions to enhance your liquidity.

To evaluate strategic alignment

With a business plan, you can determine whether the daily activities align with your business strategies .

To set goals

An excellent business plan sets achievable milestones. For example, opening a new branch and hiring a finance manager.

Performance indicators

Business planning entails performance indicators that ought to be achieved within a particular period. Therefore, ensure that you set realistic targets that are likely to be delivered.

A realistic reminder on what to keep on track

Sometimes, it may difficult to remember to do some business tasks due to work pressures. However, with a business plan, you can be reminded of the essential things to prioritize on.

Rules of Business Planning

If you want to compose a solid business plan, the following tips can help you a lot.

Market research

Before you do any planning, it is vital to research and see whether the market can accommodate your idea. Identify the companies operating in your niche and find out how they are fairing in terms of sale performance.

Determine the actual readers of your business plan

It is vital to write a business plan with your audience in mind. Therefore, tailor it to specific people whom you want to read it. Most importantly, you need to focus on ideas that are relevant to a particular target group. For instance, suppliers might be interested in sales forecasts.

More importantly, craft your plan using a language that your audience is familiar with. Therefore, avoid using jargon that can make your readers find difficulties in understanding your document.

Don’t be intimidated

Note that a business plan is a preconceived idea you have about your business. Therefore, you don’t have to hold a degree to put this idea to paper. If you are not conversant with crafting such documents, you may start with a single-page business plan and then expand it later.

Summarize your ideas

A business plan must concise and should include only the key points. Ensure that the executive summary captures essential aspects of all the sections. Once you finish drafting the document, proofread it to correct typos and grammar mistakes.

Adopt a standardized business template

A standardized template will make your business plan look professional before the readers. For instance, if your goal is to attract investors for funding, polish the document to make it look perfect.

Seek out expert advice

Before you send your business plan to your intended audience, it is vital to seek a second opinion from professionals. Experts are essential people in your planning because they have experience; hence they can offer you advice on where to correct or perfect your document.

Who is Responsible for Writing a Business Plan?

A business plan can be written by an individual person or a group of people who owns a business. Note that, in most cases, it is written by the founders of the company. It is vital to bear in mind that this document is not only meant for internal use but externals users, such as customers and investors.

Examples of a Business Plan

Writing an excellent business plan is not a straightforward thing if you don’t know how to go about it. If you are facing such a challenge , it is vital to consult experts or check business plan samples online for your guidance.

Steps on How to Write a Business Plan

The following is a highlight of the steps involved in writing a business plan.

Creating of an executive summary

An executive is the first chapter of a business plan. With an executive summary, you can give a highlight of what you do, where you are, and where you expect to be in 3-5 years.

Provide your company overview

A company overview entails a summary of your business structure and what you do. In the company overview, highlight what your business does, the industry, and the legal structure of your enterprise.

The company overview must be a catchy pitch on what your business does, the nature of clients you serve, and how you intend to provide service to them.

Perform market analysis

Present an analysis of the market, industry, and competition. Note that a sound market analysis informs and convinces the investors that you have a clear perspective of market dynamics.

Define your business’s organization

Defining your business’s organization entails giving details regarding the structure and management of your business. For instance, explain your employees’ roles, their backgrounds, and their past experience.

Highlight your products and services

Give a brief description of the products and services you are offering and the needs they are fulfilling. Explain what makes your products superior to the competitors’.

Explain your marketing plans

After identifying the products or services you will offer, the next step is to explain how you will market them to the target market.

Give details of your financial plan and projections

Provide details regarding your current financial status and show where you will like to be in the future.

Add an appendix

An appendix is any vital document you attach to provide evidence or additional information to support what has already been provided in the paper. These documents include permits, resumes, and any business contract.

Final Thoughts on Writing a Business Plan

Knowing how to craft a business plan is vital for the strategic growth of your business. A solid business plan must have essential components, such as an executive summary, company overview, market analysis, financial analysis, and an appendix. If you are not conversant with composing a business plan , please contact expert writers for business writing help , such as Peachy Essay.

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business plan uk essays


Business Plan Essays

The business plan.

The Business Plan 1. Introduction This portfolio work will enable me to learn how to set up a business. And we have to do many things to set it up. And I want to set a tuck shop in the boarding house which is near the school and what I have to do is get the tuck shop started. I also have to write a business plan for it to make sure that I know what is I doing. A business plan will also allow me to minimize risks of failure; failure can be very costly to a business. I set it up because

business plan

The purpose of this business plan is to support a request for a 75,000 five-year bank loan to purchase equipment and inventory as part of the financing for a start-up sole proprietorship, Fast ‘n Fresh Premiun Ice Cream Parlor. The business will be owned by Daniel W. Beese and will be located in leased space at 858 Success Ave in the new Riverside Faire shopping center, Jacksonville, FL 32211. The owner will provide a minimum of 75,00 in initial equity. The business will serve healthy and

we are here to take the pressure of the client so they can spend more leisure time with family. We listen to their needs and work with them to create the event of their dreams. Our client’s wishes become our commands. We are confident that this business venture will be a success and we estimate that our 1.3 Keys to Success The keys to our success are as follows: 1. Service our clients' needs promptly and efficiently. 2. Maintain excellent working relationships with vendors such as musicians, hair

Business Plan

Business Plan Executive Summary Target Things is a mobile training and safety instruction company; it will utilize the DART Targeting System, a computerized range system incorporating the latest in technology and graphics. It is a 3-D range, which can be used for archery or other weapons type training. This convenient, compact and very affordable Dart digital shooting system comes in three portable cases that can be easily transported in a mid-sized vehicle. One case holds the electronic

Business Plan for a Nightclub

Business Plan for a Nightclub LEVEL 3 plans to be a chain of upscale nightclubs centering around the middle Georgia areas. It is demographically targeted to middle aged adult’s ages ranging from 25 and up. LEVEL 3 aims at providing quality entertainment, food and refreshments along with a welcoming environment that will give our customers a unique and entertaining experience. Company Overview This company evolved through a partnership on January 19th 2005. LEVEL 3 is located in Perry, Georgia

Business Plan - Nursery

PEOPLE I intend to employ on 3 to 4 employees along with my self and cater for approximately 12-20 kids once the business has established itself then I may decide to expand and cater for more children. THE PRODUCT I have selected a nursery because there is high demand in the UK as well that there is a reasonable amount of profit, which can be made if the business is planned out correctly. One of the main reasons why demand is so high is that more women then ever before are going to

Business Plan for a Car Wash

1.0 BUSINESS PROFILE 1.1 Business Description Modern people are very busy and they often neglect to clean their cars, and sometimes the limited living space also is the problem for the people who want to clean their car but they do not have space to clean their car, especially in Taiwan. Therefore, the car wash shops are increasing quickly, and people are happy to send their cars there. In Taiwan, hand-washing cars is more popular, because the customers think using hands to wash is softer. It

Swot Analysis Of A Business Plan

he chooses to open up further stores. The following is a SWOT analysis of his current and future businesses. Any business will only be good as its current leader. Mr. Joseph Smith has shown himself to be a tremendous leader. Not only was he able to turn a profit on a restaurant his first year, but he is well educated as he has a MBA from Anytown University. He shows his business knowledge by picking locations around Anytown that have high traffic but do not have competition from other sports

Internet Cafe Business Plan

Internet Cafe Business Plan 1.0 Executive Summary JavaNet, unlike a typical cafe, will provide a unique forum for communication and entertainment through the medium of the Internet. JavaNet is the answer to an increasing demand. The public wants: (1) access to the methods of communication and volumes of information now available on the Internet, and (2) access at a cost they can afford and in such a way that they aren't socially, economically, or politically isolated. JavaNet's goal is to

Business Plan for New Airline

Business Plan for New Airline HausAir Mission Statement HausAir fixed base operation will provide the highest quality of flight instruction and comfortable charter services to the public; without compromising an ounce of safety, at a price lower than the competition. Human Resources/ Management Functions Breakdown of initial staff to begin at HausAir. (1) Manager/Owner Jason Bushouse (1) Assistant Manager Jeff Doyle (5) Receptionist/Clerical Jason Henderson (Full Time) Julie Vanek (Full

Sample Nigthclub Business Plan

Sample Nightclub Business Plan (www.bplans.com) BackgroundSummary The generation of today has a lot of focus on leisure and off-time. They are looking for ways to escape their everyday lives and let loose. Whether that is dancing to new age music, having a few cocktails, or dining out with reasonably priced food. A nightclub can provide all these accommodations, and is the perfect venue to open up is done with some thoughtful planning. There are some important elements to consider. Location is

Student Cafeteria Business Plan

Executive Summary I recommend that we decrease the average service times for all food stations as well as reduce the minimum service time for the interactive cooking station and increase the inter-arrival time. We can implement this by offering specials a half hour to an hour before the rush period begins, have enough precooked meals available to accommodate the rush and precook the ingredients for the interactive station. We can also have the manager step in as the second cashier whenever a certain

Business Plan for Ward's Event Photography

Business Plan for Ward's Event Photography 1. 0.0 Table of Contents 0.0: Table of Contents 1.0: Executive Summary 2.0: Company Overview Market Opportunity Explanation Legal Form of the Business Company Location History Growth and Financial Objectives Manager Information 3.0: Market Analysis Summary Analysis of the Industry Target Market/Customer Profile Competition 4.0: Service Offering Summary Uniqueness Description Competitive Comparison 5.0: Marketing Plan Customer

Business Plan for Import Export Company

Business Plan for Import Export Company This business plan details the launch of a start-up company known as the Import Export Company (IEC). The company functions as a ‘middleman’ in purchasing housewares from manufacturers in China and reselling the products to retail buyers in the US and Canada. The Import Export Company is primarily an independent import/export business. The products we import from China are resold to retail buyers in the US; in addition, we export the products from China

Gcse Business Plan

GCSE Business Studies - Starting a Business - Business Plan - Sporting Glory Business Plan a) Name: Sporting Glory b) Address: High Street, Sutton, Surrey. c) Limited Company/Partnership/Sole Trader: Sole Trader - Will go public (PLC) if business is successful. d) What does your business do? The business will sell quality affordable sports clothes and equipment through a retail store. e) Date you started trading: The business will start trading early 2003

Business Plan for Battery-Less-Hearing Aid

Business Plan for Battery-Less-Hearing Aid Hard of Hearing patients need something that will suit there financial goals in the long run, be less of a hassle to worry about and enhance their hearing all at the same time. We propose in creating a Battery-Less-Hearing Aid and believe that it is the best option to go because Hard of Hearing patients will never have to worry about recharging batteries or buying new ones all the time like you do with our current hearing aids that are available in today’s

Professional Business Plan

When you first start up a business and you are looking to get funding of any kind, you will need to have a well written business plan in order to get anywhere and if you are not confident in writing one yourself a great alternative is a professional business plan service. Even if you are a talented and well versed writer, unless your occupation is as a current or former business plan writer, than you are probably better served seeking help. Perhaps you doubt this sentiment and feel as though you

Salvador sausage business plan

working capital. • This business plan leads the way. It renews our vision and strategic focus on the quality and value we put in our products and the market segment originally targeted. Our vision has been broadened by the success we have found in the marketplace, to the extent of adding new products and current plans on additional items and services. It has given us a step-by-step plan to meet and exceed our goals for increased sales, gross margin, and profitability. • This plan includes this summary

Importance Of Business Plan

definition of a business plan? Why do we need a business plan? What are the objectives of the business plan. And what kinds of business plans ? . Many questions need answers. We tried to cover it in this report through our research. First What is the business Plan? A business plan is a written statement that describes and analyzes your business and provides detailed projections about its future. The business plan also covers the financial aspects of starting or expanding your business - how much money

Comparison Of Business Plan

Business Plan 1: 1. Read “Quality Training” (COMPARE AND CONTRAST OF BUSINESS PLAN) A business plan is a document used by managers to communicate a business idea, and obtain approval or financial support that will allow the idea to be implemented. 2. Comparison of business plan “Quality Training”. A. Executive summary: - Executive summary is a format of a business plan as a whole, which can attract the customers by their company profile and goals. The first paragraph is the introduction of the

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UK Essays (2018, November). Impacts and Importance of New Product Development Marketing Essay. https://www.ukessays.com/essays/marketing/impacts-and-importance-of-new-product-development-marketing-essay.php?vref=1

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TITLE: Uses of the Outcomes of Research in Business Management and Profitability

KEYWORDS: Business Management , Brief Literature Review , New Product Development (NPD) , Research and Research Publications

JOURNAL NAME: Open Journal of Business and Management , Vol.9 No.6 , November 23, 2021

ABSTRACT: This study has focused on conducting a brief literature review analyzing the impact of research outcomes on Business Management and Profitability in Organizations, focusing on how organizations have used research outcomes in Decision Making, Planning, Resource Allocation, Marketing and New Products Development (NPD). The study has articulated what different scholars have argued on how outcomes of the research have contributed to the management of organizations and thus remaining profitable. The methodology and approach of the study have been through the analysis of published literature, both empirical and theoretical literature of scholarly published journals, articles, and books, and how they have impacted business and management activities in organizations. Furthermore, the study has outlined the social and practical implications of why organizations need to use research outcomes, especially in changing business climates, in addressing and mitigating threats and aiding new product development that meets the current market trends. In addition, the study has brought out the impact of the outcomes of research in influencing policy directives that are anchored on empirical and theoretical literature in mitigating risks and avoiding organizations going out of business due to poor decision making. Finally, the study has highlighted the need for organizations to be well informed through the outcomes of research on new products to bring on the market that would be of taste to consumers and remain profitable.

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This essay has been submitted by a student. This is not an example of the work written by our professional essay writers. Nowadays, the ability of competition between organizations in the market is more violent day by day. So, to getting the competitive advantage for themselves, organizations need to find the appropriate strategies and solutions to adapt the competitive environment. So, "learning organization" and "best practice" are two important concepts to lead organizations become successful businesses. The successfulness of one product depends on the contribution of getting experiences from failure lessons or by the effort of trying to learn and the innovative of employees. Organization encourages their employees learning continuously from failure and success of past products. Then having knowledge and skills to find best way to solve problems and create new better products to make profit for

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Small Business Failure in the UK Essay (Critical Writing)


According to the Federation of Small Businesses (2012), “there are 4.5 million small businesses in the UK”. Their significance in the country’s economy is confirmed by statistics from the same organization, revealing that small business account for 99% of all the businesses in the United Kingdom.

They account for more than 48% of the private sector turnover and employ 58.8% of the people working in the private sector. London is leading with the highest number of small businesses approximated at 748,000. The South East is second with 745,000 registered small businesses.

The number has been on the rise in the recent past with over 87,000 small business registered in2010 alone. Even as this number goes up, the rate of failure is still alarming, and a cause for concern. In 2004 alone, small businesses in the UK registered a 43% failure rate (Small Business UK, 2012).

According to Federation of Small Businesses (2012), “the government recognizes that small businesses are the backbone of the United Kingdom’s economy”. Combining the public and private sectors together, each year, the small businesses represent over 90% of the employer firms.

In the last 15 years, 64% of all the news jobs created in the UK have come from the small businesses. Furthermore, “small businesses produce 13 times more patents per employee than large patenting firms; these patents are twice as likely as large firm patents to be among the one percent most cited” (Federation of Small Businesses, 2012).

The sectors significance in the country is further proven by the fact that they create more than half the country’s non-farm gross domestic product comes from it.

Half the country’s high-tech workers are employed in the small businesses. These include the computer programmers, chemical analysts, engineers and scientists. Small businesses in the UK offer income and convenience to a big percentage of the investors.

More than half are home-based, while 2% are franchises (Small Business UK, 2012). According to the same statistics, small businesses made up more than 97% percent of all registered and identified exporters in the country in 2007. In the same year, 30.2% of the known export value in the United Kingdom was from them.

Other than the financial benefits that they offer the country, small business have a political and social importance both domestically and internationally. They have been found to make significant contributions to the economical and foreign relationships between the UK and other nations, especially with most of the industrially advanced and developing nations including the United States.

Small businesses are considered as one of the major driving forces of socio-economic development in the country. Because small businesses stimulate private ownership and entrepreneurship skills they generate more innovative opportunities (Repa, 2010)

They offer stability since they are flexible and adapt themselves to changing market demand and supply situations easily. Review of relevant literature indicates that many international agencies and governments have identified the importance of maintaining healthy and supportive growth standards in small businesses (Kakkar, 2009).

However, there exist very few details of the strategies recommended by prior research. Provision of services, information and support for small businesses is not well defined in most of the past studies. Nature of small business, changing patterns of employment and changes in economic environment are found to be some of the reasons for lack of focus in the research (Trevino and Katherine, 2011).

Nature of small businesses

The contribution to modern economic life by the small enterprises is significant and cannot be ignored. In many of the advanced industrialized nations, the enhanced share of contribution to the economic growth is the strong evidence for their prominent place in changing the economic profile of these nations.

Available information from government statistics has shown that failures are more common in small businesses than in larger companies, perhaps from the fact that big businesses have the capacity to handle risks and potentially dangerous uncertainties. “It is acknowledged that such high incidence of failure is not mainly because the small enterprises undertake more dangerous business tasks; but because of unsatisfactory management and implementation arrangements in small businesses” (Koeng and Root, 2006).

Effective management of strategy in small businesses faces considerable challenges from the fact they are more vulnerable and exposed to uncertainties and changes in the markets.

As far as management is concerned, the owner is regarded as the central and dominant actor in relation to any proposal for changes in the structure or operations of small businesses. Many researches point out the personal values and priorities of the owners as the determinants of culture, social relations and attitude of the small enterprises.

Based on such characteristics, small businesses could be described as organizations that have to fight for survival. These organizations have the owners as the responsible persons to handle several issues affecting the business at the same time (Tsai and Wen, 2009). The owner-manager gets significant part of his identity from the enterprise.

The personal values and beliefs of the owners form the guidelines for the development of small businesses. The management style of owners of small businesses is often a patriarchal one, and hence it is ego-centric and action-oriented (Longenecker, 2010).

Causes of failure among small business

Cash flow problems.

The most significant challenge among small entrepreneurs is having a healthy and managing cash flow. Daily (2011) points out that “many businesses struggle through poor cash flow management”. Even where good skills are available, less than enough financial resources make it hard for them to bear any fruits.

A common mistake among small business people is going into business with the exact amount needed to start up, and sometimes even less. When the business is not profitable immediately, there is no money to cater for expenses and cater for the day-to-day expenses of the business. The results are either accumulated debts at an early age of the business, or failure at an early stage.

Poor business planning

Daniels (2010) advices that “a business plan should cover aspects such as marketing, finance, sales and promotion plans, as well as detailed breakdowns of costs and profit predictions”. Unfortunately, small businesses lack a comprehensive plan and more often leave out the important aspects of a business.

For example, a plan that lacks direction on costs and expenses may not be able to sustain itself regardless of how well marketing and sales were planned. In the UK, a considerable number of small business owners are young and may lack the much needed level of experience to address some of the challenges that arise from poor planning. The result is the inability for small businesses to go through any challenges that arise.

Poor marketing

Understanding a market is paramount for businesses that intend to establish a long-lasting presence in any market. For a business to be successful, they have to understand and meet the needs of their clientele. When this is lacking, resources spent to introduce products and market will not bear any positive results for the business.

Furthermore, small businesses in the UK suffer from stiff competition since most industries are quite competitive. Lack of sufficient funds makes it even more difficult for them to invest in understanding markets and even compete effectively. Most of them also lack proper distribution channels and are unable to create a consistent flow of goods or services to the targeted clientele.

Lack of finances

According to Barreto (2007), “insufficient finance often means that businesses are unable to take opportunities available to them, or have to compromise-going for high cost solutions to problems, rather than lower cost ones that would yield greater competitive advantage”. In the UK, the government recognizes the significance of the small businesses by offering different kinds of support.

This is through grants, financial advice and information, as well as making loans more available to small entrepreneurs. Grants are today more available through the government and other non-governmental organizations. Information and advice are essential since most small businesses suffer from poor financial management, bad credit and inability to sustain the high costs in the early days of business.

Failure to embrace new technologies

Inability to embrace new developments and technologies arises from a lack of financial resources. At an age when technology is evolving so fast, dragging behind may cause more harm than a business could anticipate.

In a fast changing world, leading investors are those that access to modern solutions and know how to use them to their advantage. Young business may suffer weak and inexperienced capacity to manage changes that occur too fast as far as their technological needs are concerned.

Issues of safety

“The issues that surround running a business are more pronounced in small enterprises by virtue of their sizes act to restrict the initiatives for meeting the health and safety standards for their workers” (Armstrong, 2009). The issue of safety is especially important for those businesses in high risk industries such as production.

Issues of safety can further be categorized into management, finance, compliance and environmental practices. All these issues are inter-linked, are dependent on each other, and operate as a total force. Based on this premise, the key factors that affect the occupational health and safety in small businesses can be grouped under these heads.

They are (a) low or lack of management and training skills; (b) lack of financial and human resources; (c) burden of statutory and regulatory compliance; (d) relationship with regulatory agencies and the use of consultants; (e) dependent relationship with large businesses; and (f) employment and occupational health and safety practices.

Poor management

Management in small businesses differs largely from that of a large undertaking with formal structures. As against large businesses, in small business enterprises, the lines of communication are shorter with simple organizational structure (Bohlander, 2010). The small enterprises feel the commercial pressures almost instantaneously and severely.

In the small businesses, management practices are intertwined with other aspects of running the business and it is not possible to separate them for higher focus. According to (Bohlander, 2010) “a shift in one area of functioning will have immediate consequences on another because of the inter-relationship between the functions of operating a small business is tightly knit”. In most cases the employer has to consider the provision of even basic management measures based on the cash flow.

Human resource management

Most of the small enterprises face the challenge of training and skill development. This is especially so in the area of business communication and management. Small businesses mostly lack both the management attainment and adequate resources to meet their commitments on human resource requirements of the industry (Clutterbuck, 2007).

The small business owners generally do not understand their obligations and responsibilities as far as their workers are concerned. Small business employers are often specialized in their particular trade rather than on the business management practices. They can frequently be characterized by a norm of independence and a shared belief in their personal values.

The small business owners are keen in their individual autonomy and hence do not take much care of what the rest of the team thins or requires. The tension between the role of management and the rest of the team in the small business also act to distance the owner-managers from meeting the requirements of the employees.

Statutory and regulatory requirements

The burden of compliance with statutory and regulatory requirements is a challenge that the small businesses have to face continuously. While medium and large sized firms are able to keep their knowledge up to date on the changes in business laws and regulations, small businesses have not.

Unlike large businesses, meeting the regulatory requirements may often place considerable financial burden on small businesses. This is because the smaller businesses are unable to spread the cost of compliance over large number of products as it is the case with larger firms. This inability may put the small businesses at a significant disadvantage.

Studies also indicate that small business owners consider that government regulations may affect their profitability and ultimately lead to the closure of the business (Vance and Yongsun, 2011). This presumption that the cost of compliance will negatively affect the profitability of small businesses has led a large number of small businesses to find ways in which they could opt out of their legal obligations in the country.

Viable solutions to reduce failure rates

In consistent with the previous researches, Longenecker (2010) suggested that the small and medium enterprises in the UK have slowly evolved their management systems to make them better. Steingold (2009) found that with the increase in the organizational size the quality of business issues management increased.

Lack of resources has been identified to be one of the major reasons small businesses are failing in the UK. Schneider and Pietra (2010) found more evidences to prove that small business organizations had resorted to more preventive activities such as insurance and compensation when challenges occur. Putting this into consideration, it is notable that availability of resources will be very helpful to the small entrepreneurs.

The first resource that small businesses need is education and training. This is in areas of cash flow management, health and safety, marketing, and compliance with laws and regulations, among other areas. Santos, Fatima and Joaquim (2011) studied health and safety systems in small construction companies in the Asian region.

The authors reported that newly hired construction workers in the small organizations are particularly at risk of occupational injuries because of insufficient safety education and training. This is important for small businesses in such industries where safety issues could collapse a business. It is also important for small businesses to learn how to receive and send important information on issues that affect them. For example, full compliance to the law would require being fully updated on any new changes and new requirements.

Another area in which small businesses need help is managing human resources. Many times small businesses employ less qualified personnel in an attempt to cut cost. Low level of literacy among the workers then makes it hard for them to be trained or adapt to new and challenging business environments in the UK. Because of their lack of knowledge, the workers are unaware of how different factors affect the business.

In small enterprises, controls are normally decided by custom and practice and not by an exact risk assessment of the work practices. Reason (2008) found that the owners cited number of barriers including limited resources, lack of in-house expertise and competition as to why they were failing in human resource management. It is therefore important that small business use everything they have to improve their human resource, as well as seek help on those issues that they cannot address.

Another significant area of concern for small business is attitude towards their relationship with the government and law enforcement bodies. Small businesses are characterized by their indifferent attitude towards and their unwillingness to cooperate with regulatory agencies, as well as a common tendency to use consultants who may not be qualified for regulatory advice (Delgado, 2011).

The same author observed three major reasons for the small business owners resorting to external consultants to assist them in compliance issues rather than dealing with the government agencies directly. First reason is that many small business owners feel alienated from the state. As a result, small business owners choose not to approach government agencies and relevant authorities directly for advice or guidance on matters that affect occupational, safety and health at work.

Secondly the small business enterprise owners always presume that they might be prosecuted by the government for not meeting the regulatory requirements. The result is that small business owners are not in direct contact with the government, and will instead be more comfortable to use the services of small business advisors.

The intermediaries may not relay all the information to both stakeholders, creating a communication breakdown. Thirdly when the small business owners do not have the competence to understand their obligation and do not seek advice from small business advisor. It is important that all relevant stakeholders put effort to fill the gap in their management knowledge.

It is important for businesses and the government to note that by relying on the advisors to guide them on managing regulatory requirements, small businesses may not have access to all the relevant information. Important subjects such as financial, tax and legal issues may not be fully addressed. For this reason, the government must ensure easy access of such information by reaching the small business instead of waiting for them to reach them. Compliance can also be improved by making it affordable for the small businesses.

Financial challenges are obviously challenges that stakeholders cannot afford to ignore. Small businesses are at a higher risk of closing down due to lack of sufficient funds to run their day to day expenses. Financial related challenges can be solved through education, training and making funds available for small businesses.

The UK government can get involved by having subsidized interest rates for small business loans, making the process of accessing funds easier, and encouraging non-governmental organizations to get involved through grants and training. The UK government in the recent past has put in place measures to encourage small entrepreneurs through government funded grants. Budgetary allocations for small businesses further need to be increased to help more start-up access financial support.

Even though the government plays a major role in the problem, every stakeholder needs to be involved aggressively for failure rates to be reduced. “Businesses need to put a plan ahead to know what the most likely risks are in a given workplace environment and prepare for them to avoid them altogether” (Shane, 2008).

To avoid stagnation and the consequences that arise when they happen, it is important for businesses to have a specific plan and regularly train employees on how to avoid being in such situations. It is also paramount for businesses to train employees on how to react when hardships occur so that they do not panic and aggravate the problem further.

The size of the small business may not really be an important factor in the provision of workplace support. The assumption of high risks, poor assessment and high incidence of failure in small businesses compared to larger once has not been supported by empirical evidences. The right information is paramount in ensuring that the right policies and measures are installed correctly and that irrelevant assumptions are not made. Information at the employees’ level is also crucial in helping employees avoid any areas where they may easily expose themselves the business to risks that hurt the business. Employee and public education can be carried out through training at the workplace, government forums and annual awareness week, usually addressing different types of challenges.

As discussed earlier, issues of safety are a significant problem for small businesses which may not have the resources to manage damages that arise when incidents occur. For manufacturing businesses, and those that use hazardous substances, health and safety should be addressed comprehensively.

It is important to ensure that chemicals do not mix or come into contact with each other accidentally. The cleaning of production and storage facilities must be done in accordance with procedures that ensure safety and protection.

Many industries in the region adopt mechanisms such as continuous process cleaning (CPC), to avoid any contact with the contaminated water during cleaning. Other mechanisms adopted from other regions such as Japan allow employees to arrange offices, stores and other facilitates in a way that allows easy exit in case of emergencies.

Another important step for proper management and protection management of small businesses is compiling a highly skilled team in the businesses. A proper team is important for preparation, prevention and response when problems and risks that could lead to closure occur.

The team must have access to every part of the business, meaning that a business must have the right teams in all its departments from the executive to the ground level. Since it is very easy to make the wrong decisions in panic, procedural manuals for incidents such as cash shortages, damaged goods and low sales must be in place to prevent such happenings.

It is important for the new businesses in the United Kingdom to seek external help from bigger and more mature businesses who may have been exposed to significant crises and business threatening incidents in the past, and were able to manage it effectively. To fully benefit from new technological innovations, companies must also consult to benefit from each other’s new ideas.

Consultations are made possible by fine tuning a company’s communication style and establishing good relationships with fellow investors. Such initiatives prove very helpful when a company needs help in times of trouble.

Setting timeline for important projects will help the small businesses improve their preparedness. It also helps manage its workers in a timelier manner. “Each process scenario must be highlighted in the timeline to ensure that teams don’t spend unnecessarily long times on one aspect of a crisis” (Reuvid, 2010). Timeliness allows order and organization during an incident management mission, an initiative that could go a long way in saving lives and minimizing damage.

Waste management and environmental challenges should be accorded the right attention in a business right from its inception. For those who make products from raw materials, reactivity and toxicity tests can be used to further determine whether waste should be considered hazardous or not. All wastes must go through these tests to determine how hazardous they are to the environment and human health before disposal.

When collecting waste, it should be segregated and collected according to different waste categories depending with how they test for different parameters. Waste should be not be mixed and should be collected in containers with secure lids securely sealed thereafter to avoid spillage. When these measures are not addressed, small businesses find themselves in trouble with environmental organizations and may end up paying hefty fines that will eat into its capital base.

Small business should have the capability to test the level of risk and exposure in the markets they venture into. The level of interaction with risks allows the analysts to determine the amount of damage that may have occurred in a business (Haddow, Jane and Damon, 2011).

In case of Therefore, it is important for small businesses to be equipped with the necessary tools and kits to perform these assessments and minimize negative effects on its operations. The other important step is identifying the most fundamental success factors for safety in their business strategy.

These are factors that must be available if sustainability initiatives have to work out and give results. They include things such as technology requirements, availability of resources, tools for measuring performance and the how the process will be aligned.

In conclusion, a proper workplace management plan can help small businesses in the United Kingdom preserve their reputation as the backbone of the country’s economy. The first step towards a proper management planning is having the right information (U.S Small Business Administration, 2011).

Any company intending to perfect their art of survival must have the right data and information about their population, level of threat, climatic trends, and rates at which risks occur in the industry region and causes. False facts can lead to wrong decisions in the face of a crisis and could cost more losses than should have happened.

In the country, small businesses have done much to ensure their survival rates increase. There needs to be more awareness and training for small entrepreneurs, especially those in high risk industries. The general view of planning is to create a specific response to economical, physical, social, psychological and environmental challenges.

The effectiveness of the plan is influenced by both local and external factors. Particular circumstances such as the economic environment, human resources conditions, accessibility of business papers, number of people involved and many other parameters may also influence the outcomes of a new business. When all these factors are put into consideration, all small businesses in the United Kingdom will be in a position to develop a more effective strategy.

Reference List

Armstrong, M., 2009. Armstrong’s handbook of management and leadership: A guide to managing for results . London; Kogan page.

Barreto, H.V., 2007. The engine of America: The secrets to small business success from entrepreneurs who have made it. Hoboken, N.J.: John Wiley & Sons.

Bohlander, G.W., 2010. Managing human resources . Mason: South-Western.

Clutterbuck, D., 2007. Coaching the team at work . Boston: Nicholas Brealey International.

Daily, F.W., 2011. Tax savvy for small business . Berkeley, Calif.: NOLO.

Daniels, O.O., 2010. The small business guide (U.S) . Evanston: The Small Business Zone.

Delgado, M., 2011. Latino small businesses and the American dream: Community social work practice and economic and social development . New York: Columbia University Press.

Federation of Small Businesses, 2012. Small business statistics . Web.

Haddow, G.D., Jane, A.B. and Damon, P.C., 2011. Introduction to emergency management. Burlington, MA: Butterworth Heinemann.

Kakkar, A., 2009. Small business management concepts and techniques for improving decisions. Global India Publications.

Koeng, S. and Root, H., 2006. The small business start-up guide: A surefire blueprint to Successfully launch your own business . Naperville, III: Sourcebooks, Inc.

Longenecker, J.G., 2010. Small business management: Launching and growing entrepreneurial ventures . Australia; Mason, OH: South-Western Cengage Learning.

Reason, 2008. The human contribution: Unsafe acts, accidents and heroic recoveries . Farnham: Ashgate, cop.

Repa, B.K., 2010. Your rights in the work place . Berkeley, Calif.: Nolo.

Reuvid, J., 2010. Managing business risk: A practical guide to protecting your business . London; Kogan page.

Santos, G., Fatima, M. and Joaquim, B., 2011. Certification and integration of management systems: the experience of Portuguese small and medium enterprises. Journal of Cleaner Production , 19(17): pp. 1965-1974.

Schneider, S. and Pietra, C., 2010. Read about it: The role of the media in improving construction safety and health. Journal of Safety Research , 41(3): pp. 283-287.

Shane, S., 2008. Startup failure rates . Web.

Small Business UK, 2012. What is the percentage of success of small businesses in UK? Web.

Steingold, F., 2009. Legal guide for starting and running a small business . Berkeley, CA.: Nolo.

Trevino, L.K. and Katherine, A.N., 2011. Managing business ethics; Straight talk about how to do it right . New York: John Wiley.

Tsai, W.H. and Wen, C.C., 2009. Selecting management systems for sustainable development in SMEs: A novel hybrid model based on DEMATEL, ANP, and ZOGP. Expert Systems with Applications , 36(2): pp. 1444-1458.

U.S Small Business Administration, 2011. Advocacy for small business statistics and research. Web.

Vance, C.M. and Yongsun, P., 2011. Managing a global workforce: Challenges and opportunities in international human resource management . Armonk: Sharpe.

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