When it comes to creating a business plan, one of the key factors to consider is the length of the plan. Many entrepreneurs often struggle with determining the appropriate length for their business plan. In reality, the length of your business plan should be dictated by its purpose and audience.
First and foremost, it’s important to remember that a business plan should not be longer than necessary. The reason you are writing the plan in the first place should guide the length of the document. A shorter business plan is not only easier to manage and revise regularly, but it also ensures that the main points are clear and concise.
Page count should not be the sole measure of the length of a business plan. A 20-page plan filled with dense text and no graphics can be much longer than a 35-page plan that is broken up into readable bullet points, accompanied by useful illustrations and business charts. The readability and summarization of the plan are crucial factors to consider.
Ideally, a good business plan should not take longer than 15 minutes to skim. A reader should be able to grasp the main contents of the plan even after a quick browse, thanks to well-formatted text, headings, white space, and illustrations. Summaries play a crucial role in ensuring that the main points are easily accessible.
The length of the plan should also mirror its audience. Internal-use-only business plans may only need to be 5-10 pages long, while corporate business plans for large companies can run into hundreds of pages. Start-up and expansion plans developed for external stakeholders typically range from 20-40 pages, with detailed financials included in the appendices.
When it comes to business plan competitions, the page limitation often ranges from 30-50 pages, including detailed financial projections. It’s important not to sacrifice readability by cramming content into dense text. Graphics should be used wisely to enhance the understanding of the plan, with business charts and illustrations adding value to the document.
In conclusion, the right length for a business plan depends on its nature, purpose, and audience. By focusing on clarity, conciseness, and relevance, you can create a business plan that effectively communicates your ideas and strategies to stakeholders.