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As lenders continue to tighten restrictions on borrowing as a result of the credit crunch, Diane Gill, senior associate in the corporate team, advises both budding entrepreneurs and growing busineses seeking investment to equip themselves with a coherent and legally compliant business plan or face losing out on crucial investment.

Well-organised businesses are in much stronger position to take advantage of the opportunities that they are presented with. It is important for businesses to demonstrate that the individuals involved have given serious thought to their business plan and to the hurdles that may need to be overcome by them to achieve success.

Business plans that do not comply with the UK’s numerous business laws encompassing areas such as finance, employment and tax laws and regulations, may well be overlooked by banks and other investors.

Law Society President, Andrew Holroyd commented: "No bank manager or other investor will want to put up the capital for a business which will look certain to fall at every legal hurdle, so it makes sense to impress them with a plan which, from a legal point of view, is as sound as a pound.

"Many of those laws are essential, and whether you like them or not your business needs to comply with them, so you need to have every base covered in your plan."

Alongside enthusiasm and a strong concept, a well researched and coherent business plan is a key component of any successful venture. Whilst the preparation may seem like a chore for enthusiastic entrepreneurs, having an experienced legal team to guide them through the perceived suffocating catalogue of laws from the outset can pay dividends in the long run.

Diane Gill comments: "A good business plan should cover all aspects of the proposed business, concisely documenting the vision and objectives of those involved and how these are to be achieved. This will include information about the position of the business within the market, the strategy for pursuing the objectives of the business and how the business will be financed.

"Businesses which are involved in heavily regulated areas or sectors will also need to demonstrate that the operation will be compliant with the relevant regulations. Businesses in the waste management sector, for example, will need to show when and how the necessary permits and licences will be obtained."