People writing a business plan for the first time frequently ask, “How long and how detailed
should it be?” There are no fixed rules. Your plan’s length will depend to a great extent on what
you want it to accomplish and how sophisticated and complex your company’s operations will be.Broadly speaking, there are three kinds of business plans:
Summary Plan A summary plan of 10-to-15 pages works best for companies without an
extensive history - a company in the early stages of development. There is not a lot of history to report, and existing operations are small. A summary plan can also be used by a more
established company interested in testing the investment waters; if found to be inviting, a more complete business plan can be assembled. A summary plan may also be appropriate for entrepreneurs with a history of success. If you are a seasoned manager with a good track record, a venture capitalist may not require as much information from you in the early stages as from an inexperienced manager. The summary business plan should include enough information to convince potential backers that you have done your homework and understand the market - in as short a form as possible.
Full Business Plan The more traditional business plan of 20-to-40 pages - typically for
financing purposes - spells out a company’s operations and projections in much detail. This
type of plan becomes more desirable as the amount of money being sought increases. For
instance, if you want $5 million to start a high-technology manufacturing company or are
seeking new commercial lending relationships, you will probably need a highly detailed plan
that contains an in-depth market analysis, five-year cost and sales forecasts, detailed research and development information, and financial data to back up your assumptions and forecasts.
Operational Business Plan For established companies, a business plan can be an important
source of guidance to top managers. It serves as a blueprint for company operations. It also
ensures that all managers understand the company’s direction and their respective roles in
achieving company goals. Almost of necessity, an operational business plan must be lengthy - typically well in excess of 40 pages and sometimes as long as 100. The greater the detail, the more likely that individual managers will understand their roles and achieve their goals.
should it be?” There are no fixed rules. Your plan’s length will depend to a great extent on what
you want it to accomplish and how sophisticated and complex your company’s operations will be.Broadly speaking, there are three kinds of business plans:
Summary Plan A summary plan of 10-to-15 pages works best for companies without an
extensive history - a company in the early stages of development. There is not a lot of history to report, and existing operations are small. A summary plan can also be used by a more
established company interested in testing the investment waters; if found to be inviting, a more complete business plan can be assembled. A summary plan may also be appropriate for entrepreneurs with a history of success. If you are a seasoned manager with a good track record, a venture capitalist may not require as much information from you in the early stages as from an inexperienced manager. The summary business plan should include enough information to convince potential backers that you have done your homework and understand the market - in as short a form as possible.
Full Business Plan The more traditional business plan of 20-to-40 pages - typically for
financing purposes - spells out a company’s operations and projections in much detail. This
type of plan becomes more desirable as the amount of money being sought increases. For
instance, if you want $5 million to start a high-technology manufacturing company or are
seeking new commercial lending relationships, you will probably need a highly detailed plan
that contains an in-depth market analysis, five-year cost and sales forecasts, detailed research and development information, and financial data to back up your assumptions and forecasts.
Operational Business Plan For established companies, a business plan can be an important
source of guidance to top managers. It serves as a blueprint for company operations. It also
ensures that all managers understand the company’s direction and their respective roles in
achieving company goals. Almost of necessity, an operational business plan must be lengthy - typically well in excess of 40 pages and sometimes as long as 100. The greater the detail, the more likely that individual managers will understand their roles and achieve their goals.
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