Hi $ohni,
I'm going to be controversial. Be warned, however, that I have not lived in Britain for many years now so I don't know what the banks expect when it comes to entrepreneurial ventures.
In my opinion, too much emphasis is placed on a detailed business plan. For sure, you must understand all aspects of your business. You must understand your costs, you must be meeting a real need, you must know the competition, you must define a clear strategy, you must know your target market, you must know how to reach your target market, and so on. For sure, the elements of the typical business plan are very important.
Where I take issue with the process, however, is that starting a small business requires flexibility. Business plans change, often on a daily basis. On the one hand, it's important not to react on a whim or to be tossed to and fro by changing situations; you need a clear sense of direction. On the other hand, you must be flexible. Maybe, when you understand the business environment a little more clearly, you'll spot a better solution or a different strategy. Creativity is also important. Is it reasonable to update your business plan daily to keep up?
While starting my own venture (and time will prove me to be either successful or unsuccessful), I have read many books and sought advice from several experienced executives that I know. I've picked up bits and pieces from many sources and applied them all to my particular situation. I am forever learning from the experience of others.
One thing that my business partner and I did was to come up with a core purpose statement and a small set of core values. They guide us when we make important decisions, and they define what we truly want to be as a new company. It's harder than you might think to condense the essence of your business venture into a single sentence - but I found the process to be invaluable.
So, my advice is to not become a slave to business plan convention. Learn from good sources, learn from trusted friends, understand your business inside and out, plan carefully... but be flexible and creative, and know what you really want to be.
