Business planning can be confusing, and one of the questions that entrepreneurs often ponder is, “how long should a business plan be?”
Asking around doesn’t seem to help much. One camp of people believes that a business plan should be a single page, while the other camp believes that a business plan should be comprehensive and extremely detailed.
The truth is, there is no perfect answer to this question. A plan should be as long as is needed to fulfill its purpose – and not everyone has the same objective when developing a business plan.
Each business plan is unique. While some plans may be text-heavy and go into deep detail with research about its market, others may use graphics to get their points across. The way a business plan writer presents their information can drastically affect the overall length of their business plan.
Does business plan length matter? Yes, but the length of your business plan is highly dependent upon your business, your audience, your writing style, and the type of plan you are developing.
The One-Page Business Plan
Over the last several years, the one-page business plan has become more and more popular as an introduction tool. Very similar to a standard executive summary, a one-page business plan summarizes the important points of the business into a single page. This business plan format is extremely digestible but isn’t acceptable for all situations.
The most applicable scenario for a one-page business plan is for introducing an investor (or another party) to a business that they are unfamiliar with. With only one page, it isn’t too time-consuming for them to read, and provides just enough information to spark their curiosity.
When building your one-page business plan, it is important to realize that a single page does not leave much room for extreme detail. With a one-pager, you will have to choose the elements that are most important and the information that will best describe your business to drive the interest of readers.
However, for an investor who is already curious about your business and seeking to learn about it in detail, a one-page business plan is often not enough. Unfortunately, a business plan of this length does not provide enough context to get into the fine details of your overall strategy.
Is a one-page business plan right for you? Consider the following pros and cons.
Pros
- Easy to put together quickly when in a pinch.
- Provides just enough content for readers to easily digest.
- Allows entrepreneurs to explain the market problem, their solution and their strategy for reaching the market.
Cons
- Often does not provide enough context for readers to fully understand your business.
- If investors are interested after reading the one-pager, they will likely request a more comprehensive business plan.
- A one-page business plan doesn’t provide enough research and won’t prove the feasibility of a company.
The Mini Business Plan
A “mini business plan” is typically around 1-10 pages and provides much of the same information as a comprehensive business plan. However, the information is condensed and minimizes all fine details and explanations.
A mini business plan cuts to the chase, often using bullet points to fulfill the section. While it includes some of the same information, it doesn’t replace a comprehensive plan. It is perfect in a situation where more detail is required to prove the feasibility of the business but immense detail is not yet necessary.
For example, if an entrepreneur has already shared their one-page plan, but the investor requests more information, a mini business plan can be sent. This version will include more extensive information including the problem, solution, marketing strategy, financial projections, and financial requirements.
Is a mini business plan right for you? Consider the following pros and cons.
Pros
- Much more inclusive than a one-pager, but easier to digest than a comprehensive business plan.
- Provides a better balance between document length and business information.
- Can be written within several days.
Cons
- Meant for brevity. Does not give enough room to thoroughly explain the major points within the plan.
- Typically excludes certain information such as an operational strategy, exit strategy, and etc.
- Provides a strong introduction to the business, but does not typically include enough research or background information to prove feasibility.
The Comprehensive Business Plan
Comprehensive business plans are full-scale plans that can be anywhere from 15-35 pages and beyond. This business plan gives readers a full view of the business including the market problem, the solution, company mission, objectives and goals, marketing strategy, competitive analysis, operational strategy, financial projections, management team, financial ask, and more.
A comprehensive plan begins with an executive summary (similar to the one-page business plan) and then expands on the summary with details and supporting information. This plan tells the story of the business, connects the entire strategy together, and provides the necessary research to validate the entire idea.
However, comprehensive business plans have their place. Virtually no one will read a 35-page document with no prior knowledge of the business. Instead, these business plans are best given on request, and after a one-page or mini-business plan has already been sent. When raising seed funding, a comprehensive business plan provides investors with a full scope of the business.
Is writing a comprehensive business plan right for you? Consider the following pros and cons.
Pros
- Provides the most detail and information with supporting research and data using text, pie charts, and other visual aids.
- Examines every aspect of the business with a solid go-to-market strategy.
- Gives the most context and answers reader’s questions with full detail.
Cons
- Readers may not read through the entire plan and flip directly to specific sections.
- Comprehensive plans require thorough research and preparation and may take weeks to fully complete.
- Plans must be extremely informative and be presented in a way that captures the reader’s attention. If they get bored while reading, they may miss important points.
What Type of Plan Do You Need?
Many entrepreneurs only complete one business plan, and they send that one business plan out for every situation. Unfortunately, this is not an effective method. Instead, entrepreneurs should have all three types of business plans in their arsenal and be able to supply the right business plan when needed. The length of your plan isn’t what’s most important – knowing what type of plan to use, and when, is what will give you an advantage when seeking funding.
Whether you need a one-pager, a mini-plan, or a full-scale comprehensive business plan, we can help. Our experts have written hundreds of winning business plans for startups around the world. We’d love to help you, too. Contact us today and let’s write your investor-ready business plan!
