Good business plans do not need to be long business plans. With rare exceptions, keep your plan to no more than twenty pages, including financials and appendix. If you can say what needs to be said in fewer pages, that’s even better. It’s unlikely anyone will actually read a longer plan, so don’t waste your time writing it. Short plans get read.
Of course, it has to be compelling, credible, and well written. But all that doesn’t matter if they need to plow through fifty pages to understand what you’re talking about. Your business concept might be novel, but you shouldn’t need to write a novel to explain it.
Speaking of length, it’s also a good idea to keep your financial projections brief as well. Forecast out only three years at most, and put them on two pages – one page would be even better. All too often I see extremely long and complex excel spreadsheets with tiny print spread out across five, ten pages, with more pages of financial notes. Trust me, they won’t get read. Instead, create a one or two page financial projection summary, along with key ratios and metrics. Add a page of notes explaining key assumptions and you’re done.
Writing a short plan forces your management team to focus: a important criteria for success in starting or growing a business. And if you’re using your plan to seek financing, a short plan is more likely to get read. That will increase your odds of getting the financing you seek.
For business plans, short is beautiful.
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For more resources, see our Library topic Business Planning.
Rolfe Larson provides consulting and training in areas such as strategic planning, market research, feasibility analysis, business planning, marketing, and implementation strategies.