The Ideal Length of Your Business Plan
How long should a business plan be? A business plan needs to be whatever length is required to excite the investor, prove that management truly understands the market, and detail the execution strategy. From surveys of investor needs, Growthink has found that 15 to 25 pages of text is the optimum length in which to accomplish this. Any more and the time-constrained investor will be forced to skim certain sections of the plan, even if they are generally interested, which could lead them to miss essential elements. Any less and the investor will think that the business has not been fully thought through, or will simply not have enough information to make an investment decision.
Many management teams feel that their company is too complex to describe in 15 to 25 pages. While this is sometimes true, the business plan is not meant to tell the whole story. Rather, the company must be "boiled down" into its essential elements. If the investor is interested, there will be plenty of additional time to tell the whole story.
Business plans, like other marketing communications documents, should be visually appealing and easy-to-read. This can be accomplished by using charts and graphics and by formatting the plan for readability. Effectively using these techniques will enable the investor to more quickly and easily understand the company's value proposition within fewer pages.
While the body of the business plan should be 15 to 25 pages, the Appendix can be used for supplemental information. The Appendix should include a full set of financial projections, and as appropriate, technical and/or operational drawings, partnership and/or customer agreements, expanded competitor reviews, and lists of key customers among others.
If the Appendix is long, a divider should be used to separate it from the body of the plan, or a separate Appendix document should be prepared. These techniques ensure that the investor is not handed a thick business plan, which will make them queasy before even opening it up.
To summarize, the goal of the business plan is to create interest - not to have an investor write you a check. In creating interest, the full story of your company need not be told. Rather, the plan should include the essential elements regarding why an investor should invest and spend more time examining the business opportunity. The shorter length does not mean that your business plan should take less time to prepare. Rather, it will take more time. As Mark Twain once said, "If I had more time, I would write a shorter story." Likewise, condensing your business plan to a concise, compelling document is challenging and time consuming. Fortunately the rewards are significant.
Since its inception, Growthink Business Plans has developed over 200 business plans. Growthink clients have collectively raised over $750 million in financing, launched numerous new product and service lines and gained competitive advantage and market share. Growthink has become the firm of choice for venture capital firms, angel investors, corporations and entrepreneurs in the know. For more information please visit http://www.growthink.com
Latest News
Could auto industry layoffs spur more entrepreneurialism in Mich.? MLive.com, MI - So in the wake of all this economic destruction, will entrepreneurialism and creativity flourish? Some business leaders think so. ... 'There's no such thing as job security' |
Risky Decision-making Essential To Entrepreneurialism Science Daily (press release) - ScienceDaily (Nov. 12, 2008) — Whether someone will become the next Richard Branson, Steve Jobs or Henry Ford may be down to whether they make risky ... |
Norfolk entrepreneur wins top award Norfolk Eastern Daily Press, UK - ... and at LEAD East - a new initiative which promotes entrepreneurialism in order to help ensure continued growth in the East of England. ... |
Two Degrees, LLC Appoints Mike Heffernan as Chief Financial Officer MarketWatch - Now is the time to bring on a financial expert that we know and trust, and who shares our spirit of entrepreneurialism, to ensure our continued success. ... |
Bank of America and PRIME - Working Together to Support the Over ... ITNews, Italy - It aims to unlock entrepreneurialism in the over 50s in the UK by helping this group get back into employment through setting up their own businesses. ... |
Economic downturns can spur mergers, innovation Seattle Post Intelligencer - We've seen consolidation inspire entrepreneurialism most clearly in Washington's banking industry. Every time a bank is bought, that frees up capital and ... |
Max Levchin, Jawed Karim, Tom Siebel, Scott Banister, Reid Hoffman ... SYS-CON Media, NJ - ... co-founder of Zivity, Reid Hoffman , founder, President and Chairman of LinkedIn and others to Discuss Cross-Country Entrepreneurialism in Two Panels. ... |
Chamber joins Go Texan Jack County Herald, TX - Retirees are increasingly drawn to smaller rural communities with access to urban services, and rural entrepreneurialism is a growing trend. ... Chamber provides info on how to donate |
Range of Bay area firms take note of Entrepreneurship Week Bizjournals.com, NC - Entrepreneurialism, invention and innovation are important to advancing living standards, said Ken Evans, regional director for Entrepreneur Week in his ... |
Portland trying new solar-powered public toilet Northwest Cable News, OR - Entrepreneurialism aside, the city says it's recognizing a humanitarian need for public rest rooms. To reduce opportunities for vandalism and crime, ... |
Resources
-
Sorry there are no resources available at this time