Daniel Callaghan is co-founder and chief executive of UK-based SME MBA & Company

Why do business plans fail? The most common reason for a business plan failing to deliver the expected results are primarily the entrepreneurs’ optimism and enthusiasm for their idea. We have all been guilty of it and when trying to raise funding or get a loan, positive numbers sound better than safe numbers. The best way to overcome this is to apply an extremely objective view and a harsh dose of reality to your figures. Other reasons are, typically, related to market changes. A business plan is a static document, but commercial conditions are not. This can be avoided by reforecasting your business and collecting data so that you have a real time view of what you are likely to achieve.

Research your future market: Start looking at the companies that are already selling a competing service. See how many there are and how much are they selling. Who are they selling too? Are they selling the same thing as you? Then go and speak to their customers. Find out what they like and don’t like – discuss with them your idea for a service and ask what they would be willing to pay or how useful it will be. If these responses are positive then you could go into a lot of detail about the other answers.

Howard Sears is a serial entrepreneur and the founder of Astuta, a company that offers capital, expertise and connections to technology-based startups

Remember, the business plan is a guide not a doctrine: While you need it at the start to set out your direction of travel and meaningful targets, conditions on the ground may dictate that over time you have to adapt it. A good timeframe for a business plan is three to five years, as investors generally expect to see return on their investment within that period. A good business plan is not just used in the early stages when you are seeking investment, but also down the line as a yardstick by which to measure yourself. By using it to gauge your progress, you can make better informed decisions as the business matures and develops.

Don’t be afraid to get creative: You want it to be memorable and thinking outside the box can really help. Don’t be afraid to use visuals if they back up your points or findings. Of course there are business templates available, but use these as a guide and not as gospel. Although your plan must cover certain key points, such as objectives and revenue projections, how you display it can reflect your brand, product or service. Often, a lot of information can get lost in a body of text but a simple chart or graph can highlight your key points. After all, a picture can say a thousand words.

Stewart Baird is chief executive at Stone Ventures, which invests in SMEs that fall into the ‘equity gap’ between bank support (less than £100k) and traditional venture capital (more than £1m)

Quality not quantity: It is all about the quality of the content and the research you’ve completed. Think about your target audience here. Institutional investors might need a short ‘teaser’ document to tickle their fancy first and then you can go in and do a proper pitch and share the 20 pages or more. In crowdfunding, the challenge is to stand out. Look to friends and family first – you will undoubtedly get a better deal if you’ve self-funded the business in the early stages. Even with the hundreds of angel investment or crowdfunding websites around, it is still very tough to raise cash for an idea and the more public it becomes the easier it is for someone to copy.

Andrew Subramaniam is a partner at HW Fisher & Company chartered accountants

Be realistic: Many startup businesses fail to realise the importance of a good business plan coupled with a realistic financial forecast and cashflow. Referring to the business plan regularly and comparing projected figures with actuals can help the owner take steps to amend the plan and targets for the business.

Matt Connolly is a serial entrepreneur who set up his first company in his early 20s. His latest venture, myLovelyParent, is a site where adults encourage their single mums and dads to meet new people online

At what point in my venture should I draw up a detailed business plan? So you’ve got a great idea, done some good research but haven’t sold or manufactured a product – is it worth creating a business plan just yet? In my opinion it is worth drafting something as it will give focus and shape to what you’re about to embark on. But I’d also say it’s worth focusing on demonstrating/proving the need for your product and appetite to purchase it. The latter being particularly important and something not often considered during the early stages.

Mark Moore is the managing director of small business campaign and advice hub Ingenious Britain

Here are some tips on how, what and where to research: Start with your competitors. Who are they, what market segments do they serve? Are there seasonal factors? Do you know anybody who has worked for one of the competitors who will talk to you? Find out as much as you can about your business competitors. Learn the business cycle for your business. Each business will have one and it is a key piece of information. This can be gleaned from looking at your competitors and talking to wholesalers and suppliers. On general market size there is the National Office for Statistics. The NOS keep a wide range of statistics on markets, imports, exports. So this will help you assess what market share you need or whether your sales projections are realistic.

Trade magazines are also a good source of information. Successful companies are happy to brag and libraries hold a wide business reference section. Newspapers are a good reference source too. Each week the business and jobs supplements give comprehensive coverage to business. Again, back editions are kept in your library.

Fiona Wood is the founder of the Naturally Cool Kids skincare range, which launched two years ago and now has products stocked in stores in the UK and abroad

Grasp investors’ interest early on: With a business plan it’s not about writing things for the sake of it, or trying to pack it out to look more impressive. Investors don’t have the time to be reading reams and reams of pages. In the opening pages you must give them an all round idea about your business and an insight into what they are going to read about. If you grasp their interest early on, they can decide whether they want to take it further.

Stephen Wylde is director at eSafes and has experience in creating a business plan for a niche market business

Give your plan room for manoeuvre: The key to building a successful business plan is to make sure your plan allows you movement for change and that you give yourself a window for corrective action within suitable timescales. Your plan needs to work with you not against you. It must allow some flexibility as changes do occur whether you like it or not.

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