A majority of entrepreneurs understand that it is necessary to have a professional business plan when you are trying to raise capital.
A popular question that entrepreneurs like to ask is “How long does my business plan have to be?”
The main thing about the length of a business plan is that it must not be any longer than is required to attract investors. But on the other hand, it cannot be any shorter than is needed to show investors that you are very knowledgeable about how your business works.
Now, a problem exists.
The fast and easy answer is that a majority of business plans are in the range of fifteen to twenty five pages long. But, then a boatload of additional question will crop up with the following two questions being asked the most:
1. What should the length of the Executive Summary be?
Because it is the first section of your business plan and the part that should grab the attention of your investors, the Executive Summary should be about one to four pages long. The first pages should contain everything that the investor needs to know before making a decision to read the remainder of your business plan.
Download your business plan template now! <==== 2. Do I put the Appendix in the fifteen to twenty pages? Probably not. If the Appendix has a large number of pages, like possibly ten or more, then it should be separate from the other 9 regular areas of the business plan. Do not forget that an Appendix has to have a complete set of financial projections to support the Executive Summary and Financial Plan. Based upon how detailed your company might be, the Appendix may also have support documents on technologies in the form of drawings and patent info. In addition, it might also have partnership or customer testimonials, reviews from both indirect and direct competition and a list of your most important clients. The good thing about putting the Appendix in a separate section of the business plan is that the business plan will automatically appear to be easier for the investor to manage when you give them a physical copy. Form follows function. Function also dictates the length. Whether it is long or short, your business plan has to keep your investors interested. The goal of a business plan is not to make the investors want to invest in your business. Instead, it is to get them interested and give you initial contact with the investor. Then you will be afforded the chance to showoff your company and then get down to business. Download your business plan template now! <====