Business plan
A business plan is a written document setting out a business's goals, strategy, market, operations and financial projections. It is a business term rather than a legal one. Lenders, investors and some government programs ask for one, but there is no general legal requirement for a business to have a business plan.
How BC law treats it
There is no BC legal requirement to prepare a business plan. The most relevant legal point is that statements made to investors or lenders, including financial projections, can give rise to misrepresentation claims, and securities law may apply when raising money from investors.
What it means for your business
A business plan is a good time to settle legal structure questions, such as incorporation, shareholder arrangements and ownership of intellectual property.
Risks and common mistakes
Overstated projections given to investors can later be used as the basis of a misrepresentation claim if the business underperforms.
Fulcrum's business and startup lawyers can help with these issues.
General information about British Columbia and Canadian law, current to October 2026. It is not legal advice.
