Why do business plans get rejected by the home office?
“Many of our clients come to us after they've had a rejected application even though they are genuine and tick all the requirements by the home office.
In many cases this is because of their business plan.
Common rejection issues that we've seen are:
Low quality market research. Low quality can mean that the research is not relevant, not accurate or not detailed enough. When submitting your market research it's important that it covers your relevant competitors. That all market statistics are up-to-date and should show that you have done enough research to fully understand your business.
Realistic goals and financials.
Your business plan highlights your strengths and weaknesses in a way that is realistic. Your business plan should show:
You are aware of obstacles you may face & what your plan is to combat them.
You have considered all expenses, taxes and cash flow reserves and will not run out of money.
You are aware of legal requirements relevant to your business (i.e - insurance, regulation etc) and how they will impact your business.
Both your income and outgoing is based on research and not just a number you have picked from the air. I.e - How much is your office rent going to be? - Where have you got that information from?
Your business does not need to be based in the UK.
This visa type is called the UK Innovator VISA for a reason. If your business is 100% online then you will need to highlight why the business needs to be setup in the UK.
Your business is too big for this VISA category. The Innovator VISA is intended for a small £200k investment. While you are more than welcome to invest more, if your business is planning on investing more than £2m over the next few years, the tier 1 Investor visa may be better for you - if this is the case we advise that you speak direct to an immigration solicitor.
Your business plan and it's financials do not meet the Tier 1 Innovator UK Visa requirements,
Standard Business plans and VISA business plans are different because a standard one will generally lean more towards raising finance and proving a return on investment for investors. With a VISA business plan, you need to prove your own return (if the business makes no profit - why are you doing it?) and is tier 1 visa compliant. This is the main reason to hire a professional experienced writer with tier 1 visa business planning experience as they will know what points, milestones and requirements you need to tick and showcase in your business plan.