What should be my business plan length? It is a common question for entrepreneurs who are new to business planning.
Certain people hold the opinion that a business plan should be one page long, while some believe a business plan should be extensive and filled with minute details.
Every business plan and business is different. While some may be heavily text-based and include extensive market research, others may rely on graphics to make their points.
If your business plan is too brief, you’re probably not offering potential investors enough details about your operation. In contrast, if it goes on for too long, you will bore them, and they will lose interest since you are giving them too much information.
Confused about the length of a business plan? Make sure your business plan is detailed enough to show that investing in or getting involved with your business is a good idea.
In light of this, a business plan length should typically be between 15-30 pages. Let’s see the detailed guide on how long should a business plan be
Length Depends on the Purpose of Your Business Plan
Don’t overlook the main mission of your plan while you determine the ideal length of your business plan. The goal of your plan is to persuade readers to support your business, financially or by being an active part of your business.
Certain questions to answer to know your purpose are:
- Who is the target audience, first, for whom you are creating a business plan? (E.g., banks, investors, potential partners, etc.)
- Will it have details of the business and the management team that everyone can read?
- Do you require showing the whole business plan or only the executive summary to your readers?
- Does it contain thorough research, plans, designs, and charts?
Length Also Depends on the Type of Business Plan
The page count of a business plan also depends on its type. There are three types of business plans, let’s deep dive into them, and then you can decide the ideal length of your business plan.
One-Page Business Plan
A business owner prefers a one-page business plan to introduce their business to investors. A one-page startup business plan encompasses the key elements of the company into just one page, much like an executive summary.
One of the advantages is that investors can read it quickly because it is simply one page long and has just enough details to pique their interest.
Mini Business Plan
A mini business plan contains 1 to 10 pages and has every component that is in a normal traditional business plan, but all are synchronized.
A short plan has all the essential elements of your business in bullet points to make it concise. Even though it contains some of the same details, a detailed business plan is still necessary.
If an investor asks for further details, after reading a one-page business plan, then this mini-business plan can come in handy.
This version will contain more detailed information, such as the problem, the solution, the marketing plan, the expected financial results, the target market, the company and management team, short financial tables, business charts, and the details to secure funding.
The Comprehensive Business Plan
Comprehensive business plans can range in length from 15 to 35 pages and beyond.
This business plan provides readers with a complete overview of the company, including the market problem, the proposed solution, company description, objectives, and goals, as well as its marketing plan, competitive analysis, operational plan, financial projections, management team, and funding request.
A comprehensive plan starts with an executive summary and then expands on it with supporting data. This plan includes essential research to validate the overall business idea.
These business plans should only be provided upon request and following the delivery of a one-page or mini-business plan. An extensive business plan gives investors a complete picture of the company while raising the starting capital.
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Elements to Include in a Business Plan
Now that you know the types of businesses and the average length of a plan, let’s move ahead with what to actually include in a plan. By exploring these essential components, you will be able to create a solid plan.
Executive summary
It is an overview of the whole business plan. Generally, entrepreneurs prefer to write it at the last, after having the clarity of each section of the business plan.
Company description
There is a detailed introduction to your business in this section, including the structure, name of your business, location, history, etc.
Market analysis
This is the section where you provide information about the market, like market size, market trends, target market, industry trends, regulatory environment, etc.
Products or services
Mention the products or services you will provide in this section, including the competitive advantage, unique value proposition, and benefits of the product or service.
Sales and marketing strategy
Here should be your marketing plan on how will attract new and retain old customers.
Management team
Here, mention the names, roles, and experiences of key members, managers, and owners.
Financial projections
Attach financial forecasts of at least 3 years to 5 years in this section, including income statement, balance sheet, and cash flow statement.
Appendix
Additional information that supports the main sections of the business plan, such as resumes, market research data, legal documents, and any other relevant materials.
Tips for Writing a Concise Business Plan
Writing a concise business plan is essential for capturing the attention of potential investors and partners. Here are some tips to help you write a concise business plan:
1. The Length of an Executive Summary is Crucial
The executive summary is typically the whole overview of the business plan, so it is one of the essential components. Therefore, make sure your summary is well-presented and brief with all the details.
The executive summary’s opening paragraph, in particular, is of utmost significance, since if you don’t grab the reader’s attention right away, they won’t continue reading.
It should normally be one to two pages long to get the reader’s interest in your plan.
A good executive summary should be 5-10% of the whole business plan, so write all the information in a synchronized yet clear manner.
Your business plan has six essential components after the executive summary. These sections should each be between one and two pages long.
2. Correctly Format Your Plan
By organizing your business plan, you can avoid including information that would make the plan too cluttered, long, and difficult to read.
Formatting will:
- Give readers a more enjoyable experience
- Make it simple for them to locate the exact information
- Help you fit in the ideal length of the business plan
- Increases engagement and your chances of getting results
- Will also help you understand key elements of your business
3. No One Wants a Novel
When it comes to your business plan length, no one would be interested in reading 100 long pages.
If you include every minute detail of your business, then the plan will be excessively lengthy, and the majority of readers will become bored. Keep in mind that no one will read a 100-page business plan.
Instead, include the most significant information in the executive summary, and then in the other sections of your plan, validate what you mentioned in the executive summary.
4. Move Supporting Documents to the Appendix
While an executive summary gives a quick overview of your whole plan, the appendix supports the data presented in the plan, making it simple to read with all the evidence.
For instance, the primary component of your plan includes revenue projections for years 1 and 5. You can include the specifics of how those forecasts were made in your appendix, rather than putting all pertinent information in the main text.
Therefore, to make your plan clutter-free, move all the supporting documents to the appendix.
5. The 15 Minutes Readability
The 15-minute readability is an actual answer to the question; how long should a business plan be? After quickly scanning the main points of a strong business plan for 15 minutes, the reader should have a good understanding of its main components.
Format, headlines, white space, and graphics all significantly impact readability. The main ideas of a business strategy should be presented as rapidly as they are in a business proposal or business presentation.
If you are still confused about how to write a business plan, then you can also use free business plan samples to make your plan perfect.
6. Use Graphics Wisely
Never reduce a plan by removing helpful graphics. Readability and understanding of the plan are much more important with the help of graphics.
Make your financial projections easier to understand by using business charts to illustrate the numbers. As much as possible, use pictures and drawings to illustrate locations, items, sample menus, product images, and other things.
Are You Ready for Your Business Plan?
In final words, a business plan’s length depends on various factors, like the type & complexity of your plan, the audience of your plan, the purpose of the plan, and many more.
The thing that only matters is your plan should reflect all the main elements of your business, whether it is 15 pages or 30 pages with clarity.
Don’t worry if the ideal length of your business plan is still confusing, because you can always rely on a good business plan software like Upmetrics for writing a business plan. So, start writing, and all the best!
