how long should my business plan be

When Should You Write a Business Plan?

Noah Parsons

11 min. read

Updated May 10, 2024

When’s the right time to write a business plan? My favorite answer is from this proverb:

The best time to plant a tree was 20 years ago. The second best time is now.

Things are changing for business owners at a much faster rate. There’s an increasing level of uncertainty about the future and in order to survive and grow you need to plan now and plan often. The right kind of business planning is something that happens regularly and continues forever.

That’s because business planning is not just about producing a document. Instead, planning is an ongoing, repeating process that helps your business grow healthily. You create a strategy, build budgets, and set goals so that you can measure your progress and make changes when you need to.

Much like the proverb about the tree would imply, planning can be hard to get started. But if you understand the basics of the planning process it can be much easier than you’d think.

• When should you write a business plan?

As I said in the introduction, there’s really no wrong time to write a business plan. Whether you have a new business idea or your business has been up and running for years, putting together a plan is beneficial and necessary . 

The real question is, what kind of planning should you do for the stage your business is in? Should a five-year-old business use the same business plan template as a new startup? 

The answer is no. Planning isn’t one-size-fits-all. It’s about finding the right size plan for your business stage and needs.

Here are some common times when you should create a plan for your business along with recommendations on the right kind of plan for each specific situation:

When you have a new idea for a business

Figuring out if you can turn an idea into a business can be challenging. 

Are your potential customers going to want what you are selling? Will you be able to make a profit? How much money will you need to get off the ground? What do you need to turn your side hustle into a full-time gig? At this stage, the most important thing you can do is write down a quick summary of your business idea using a one-page business plan . This will help you think about who your customers will be and create a rough sketch of what your business numbers look like. You can use a one-page plan to test your assumptions. 

Are your customers who you think they are? Will they be willing to pay what you want to charge? 

As you gather information, you can quickly revise your plan until you have a business plan and business model that works for turning your idea into a business. This kind of planning will help reduce your risk and get you started the right way, without investing too much time in the planning process.

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When you’re starting a business

If you’ve found product-market fit for your business idea, you’re ready to turn it into a business. You have evidence that your business fills a real need for customers and they’re willing to pay for your solution. This is when a more detailed business plan is useful. You’ll focus on building out revenue forecasts and more detailed expense budgets. This will help you understand what it’s going to take to get your business off the ground and sustain it through the early days. You’ll also expand your business plan to define your target market, detail your marketing and sales strategies, and solidify your operational plans.

When you’re seeking funding

If you need funding to get your business off the ground, you’ll need a thorough business plan with complete financial forecasts . Whether you’re seeking a loan or looking for investors—you’ll need to understand exactly how much money to ask for and how long that money will last as your business grows. 

This is where having a cash flow forecast in place pays off. With this forecast, you can predict how much money you’ll need and when you’ll need it. Investors may never ask to see your actual business plan. But, they’ll definitely ask questions that you’ll only be able to answer if you’ve put one together. 

They’ll want to know about your target market and market size, details about your competition, your sales and marketing plans, and more. This is all in addition to your financial forecasts. If you’re looking for a loan, many lenders require a business plan as part of the loan application process. Having a polished and impressive plan can even help with the loan process, even though loans are most often made based on the collateral you have rather than the quality of your business idea.

When business conditions are changing

We live in a world of uncertainty. Supply chains get disrupted , the labor market changes, and the price of materials is always shifting. If you think your industry or your market is headed for a significant shift, it’s a good idea to make sure you have a plan in place. This kind of planning focuses on a shift in strategy. Will your marketing and sales strategies change? What expenses will you shift around? How will potential changes in future revenue impact your business and do you have the cash on hand that you need to weather the changes? Planning for change often involves running different financial scenarios and documenting different strategic directions your business may take. Having an initial business plan to base these adjustments on will make the process easier.

When you’re growing your business

Growth should certainly be celebrated, but it often comes with its own significant challenges. For businesses that make and sell products, managing inventory and handling rapidly increasing orders can create a cash crunch. That’s where planning for growth comes in, specifically focused on cash flow . The right kind of planning will help you ensure that you can handle fast growth and give you the time to line up any additional funding you need— before you need it.

When you want to run a healthy business

Most people think of business planning only when they’re starting a business or seeking funding. The reality is that it’s a crucial component of running a business. Just like with personal finance, it’s important to have a budget and revenue goals and then track how things are going on a regular basis. This kind of ongoing planning —where you build a financial forecast and budget and then track your progress as you go—helps you spot problems before they happen and find opportunities for growth that you might have missed. This planning is called growth planning and helps you run your business better.

When you’re buying or selling a business

If you’re buying a business, you’ll want to get a good look at the books before you make a purchase decision. You can use the business’s accounting data and historical performance to create forecasts for future profits and cash. And, if you plan on investing more into the business, you’ll need a plan to know when you’ll be able to recoup your investment. If you’re selling a business, a strong business plan is a valuable sales tool. The business plan explains to prospective buyers how the business works and what the buyer can expect regarding revenue, profits, and cash flow. The more clearly laid out your business operations and performance are for the buyer, the smoother your exit will be.

• Is there a best time to write a business plan?

As an entrepreneur, you have a vision for your business and the drive to turn that vision into a reality. A business plan can certainly help with that. But when is the best time to write one? The answer, like so many things in business, is that it depends.

A recent Harvard Business Review study found that business planning had the most positive impact on businesses when the business plan was written between 6 and 12 months after deciding to start a business. In fact, planning at this stage increased the chances of success by 8%. 

I’ll add a caveat to this study, though. The study did not look at the types of business plans that were written at the different stages of business. 

If all of the business plans were in-depth, comprehensive, and detailed, they certainly wouldn’t have as much impact at the idea stage as they have later on in the startup process. Doing detailed planning a bit later in the game makes sense. Detailed planning early on is really a waste of time.

That’s why we recommend a different approach: start with a simple one-page business plan in the beginning, and then expand to a more detailed plan only as you need it. 

After you’ve validated your business idea and are in startup mode, a more detailed plan makes sense. You need to explore and understand your operational plan , detailed marketing plan, budgets, and financial forecast.

When you’re fully up and running with a business model that works and a few years of experience under your belt, your planning may simplify again . Planning for established businesses tends to focus mostly on financial management and less on documenting target markets and operations. 

This type of flexible and right-sized planning is most likely to have a positive impact throughout the lifecycle of your business. So, instead of waiting for the exact right time to start planning, start with the right kind of planning based on your business stage.

• When can you skip writing a business plan?

There are some situations where writing a business plan may be unnecessary. For example, if you’re starting a very small, simple business that doesn’t require any kind of significant investment, you might be able to get by without a formal plan. 

However, even in these cases, it’s still a good idea to take the time to think through your business and write down your goals and strategies. A one-page plan is perfect for these situations and won’t take long to write.

• How long should you spend writing your plan?

The amount of time you should spend writing a business plan depends on several factors—including the size and complexity of your business, and how much detail you need in your plan. On average, it can take anywhere from several weeks to several months to write a comprehensive business plan.

That said, planning doesn’t have to take that long and shouldn’t for most businesses. In fact, a useful one-page plan can be put together in under an hour . You can then add more detail in as little as a day. Then plan to expand your plan as you go, based on what you’ve learned from actually building your business.

Just don’t get too bogged down in the details of planning. The goal of a business plan is to help you focus on what’s important and give you a roadmap for success, not to create a document that will sit on a shelf and collect dust. 

So, spend enough time to create a useful plan. Don’t get so caught up in the process that you lose sight of your ultimate goal: building a successful business.

A final word of warning: don’t fall into the trap of letting planning go on for months. 

Any time spent planning beyond 3 months is generally a waste of time because your information gets stale. You also miss out on building your business and learning what does and doesn’t work. You’re just stuck in a planning cycle without any results to review and build upon.

• The ideal time to write a business plan is now

Writing a business plan can be a valuable tool for entrepreneurs at any stage of their journey. The key is to write the kind of plan that your business needs for the stage your business is in.

Planning should always start small: What problem are you solving ? Who are you solving it for? Can you make money doing it?

If you can start to answer these questions, you have a business that can work. From there, flesh out the details as needed. If you’re raising money, you’ll need a more detailed plan. If not, focus on a plan that has the details you need to help you achieve your goals. 

Whether you write your plan before opening your doors or after you’ve been in business for a while, the important thing is to have a plan that you use to guide your business to success. A good business plan is all about good management—and that’s what all long-lasting businesses need.

If you need additional guidance, check out our roundup of the best free business plan templates .

Noah is the COO at Palo Alto Software, makers of the online business plan app LivePlan. He started his career at Yahoo! and then helped start the user review site Epinions.com. From there he started a software distribution business in the UK before coming to Palo Alto Software to run the marketing and product teams.

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Business Plan Length: How Long Should a Business Plan be?

Business Plan Template

• April 17, 2024

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What should be my business plan length? It is a common question for entrepreneurs who are new to business planning.

Certain people hold the opinion that a business plan should be one page long, while some believe a business plan should be extensive and filled with minute details.

Every business plan and business is different. While some may be heavily text-based and include extensive market research, others may rely on graphics to make their points.

If your business plan is too brief, you’re probably not offering potential investors enough details about your operation. In contrast, if it goes on for too long, you will bore them, and they will lose interest since you are giving them too much information.

Confused about the length of a business plan? Make sure your business plan is detailed enough to show that investing in or getting involved with your business is a good idea.

In light of this, a business plan length should typically be between 15-30 pages . Let’s see the detailed guide on how long should a business plan be

Length Depends on the Purpose of Your Business Plan

Don’t overlook the main mission of your plan while you determine the ideal length of your business plan. The goal of your plan is to persuade readers to support your business, financially or by being an active part of your business.

Certain questions to answer to know your purpose are:

• Who is the target audience, first, for whom you are creating a business plan? (E.g., banks, investors, potential partners, etc.)
• Will it have details of the business and the management team that everyone can read?
• Do you require showing the whole business plan or only the executive summary to your readers?
• Does it contain thorough research, plans, designs, and charts?

Length Also Depends on the Type of Business Plan

The page count of a business plan also depends on its type. There are three types of business plans , let’s deep dive into them, and then you can decide the ideal length of your business plan.

One-Page Business Plan

A business owner prefers a one-page business plan to introduce their business to investors. A one-page startup business plan encompasses the key elements of the company into just one page, much like an executive summary.

One of the advantages is that investors can read it quickly because it is simply one page long and has just enough details to pique their interest.

Mini Business Plan

A mini business plan contains 1 to 10 pages and has every component that is in a normal traditional business plan, but all are synchronized.

A short plan has all the essential elements of your business in bullet points to make it concise. Even though it contains some of the same details, a detailed business plan is still necessary.

If an investor asks for further details, after reading a one-page business plan, then this mini-business plan can come in handy.

This version will contain more detailed information, such as the problem, the solution, the marketing plan, the expected financial results, the target market, the company and management team, short financial tables, business charts, and the details to secure funding.

The Comprehensive Business Plan

Comprehensive business plans can range in length from 15 to 35 pages and beyond.

This business plan provides readers with a complete overview of the company, including the market problem, the proposed solution, company description, objectives, and goals, as well as its marketing plan, competitive analysis, operational plan, financial projections, management team, and funding request.

A comprehensive plan starts with an executive summary and then expands on it with supporting data. This plan includes essential research to validate the overall business idea.

These business plans should only be provided upon request and following the delivery of a one-page or mini-business plan. An extensive business plan gives investors a complete picture of the company while raising the starting capital.

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Elements to Include in a Business Plan

Now that you know the types of businesses and the average length of a plan, let’s move ahead with what to actually include in a plan. By exploring these essential components , you will be able to create a solid plan.

Executive summary

It is an overview of the whole business plan. Generally, entrepreneurs prefer to write it at the last, after having the clarity of each section of the business plan.

Company description

There is a detailed introduction to your business in this section, including the structure, name of your business, location, history, etc.

Market analysis

This is the section where you provide information about the market, like market size, market trends, target market, industry trends, regulatory environment, etc.

Products or services

Mention the products or services you will provide in this section, including the competitive advantage, unique value proposition, and benefits of the product or service.

Sales and marketing strategy

Here should be your marketing plan on how will attract new and retain old customers.

Management team

Here, mention the names, roles, and experiences of key members, managers, and owners.

Financial projections

Attach financial forecasts of at least 3 years to 5 years in this section, including income statement, balance sheet, and cash flow statement.

Additional information that supports the main sections of the business plan, such as resumes, market research data, legal documents, and any other relevant materials.

Tips for Writing a Concise Business Plan

Writing a concise business plan is essential for capturing the attention of potential investors and partners. Here are some tips to help you write a concise business plan:

1. The Length of an Executive Summary is Crucial

The executive summary is typically the whole overview of the business plan, so it is one of the essential components. Therefore, make sure your summary is well-presented and brief with all the details.

The executive summary’s opening paragraph, in particular, is of utmost significance, since if you don’t grab the reader’s attention right away, they won’t continue reading.

It should normally be one to two pages long to get the reader’s interest in your plan.

A good executive summary should be 5-10% of the whole business plan, so write all the information in a synchronized yet clear manner.

Your business plan has six essential components after the executive summary. These sections should each be between one and two pages long.

2. Correctly Format Your Plan

By organizing your plan, you can avoid including information that would make the plan too cluttered, long, and difficult to read.

Formatting will:

• Give readers a more enjoyable experience
• Make it simple for them to locate the exact information
• Help you fit in the ideal length of the business plan
• Increases engagement and your chances of getting results
• Will also help you understand key elements of your business

3. No One Wants a Novel

When it comes to your business plan length, no one would be interested in reading 100 long pages.

If you include every minute detail of your business, then the plan will be excessively lengthy, and the majority of readers will become bored. Keep in mind that no one will read a 100-page business plan.

Instead, include the most significant information in the executive summary, and then in the other sections of your plan, validate what you mentioned in the executive summary.

4. Move Supporting Documents to the Appendix

While an executive summary gives a quick overview of your whole plan, the appendix supports the data presented in the plan, making it simple to read with all the evidence.

For instance, the primary component of your plan includes revenue projections for years 1 and 5. You can include the specifics of how those forecasts were made in your appendix, rather than putting all pertinent information in the main text.

Therefore, to make your plan clutter-free, move all the supporting documents to the appendix.

5. The 15 Minutes Readability

The 15-minute readability is an actual answer to the question; how long should a business plan be? After quickly scanning the main points of a strong business plan for 15 minutes, the reader should have a good understanding of its main components.

Format, headlines, white space, and graphics all significantly impact readability. The main ideas of a business strategy should be presented as rapidly as they are in a business proposal or business presentation.

If you are still confused about how to write a business plan, then you can also use free business plan samples to make your plan perfect.

6. Use Graphics Wisely

Never reduce a plan by removing helpful graphics. Readability and understanding of the plan are much more important with the help of graphics.

Make your financial projections easier to understand by using business charts to illustrate the numbers. As much as possible, use pictures and drawings to illustrate locations, items, sample menus, product images, and other things.

Are You Ready for Your Business Plan?

In final words, a business plan’s length depends on various factors, like the type & complexity of your plan, the audience of your plan, the purpose of the plan, and many more.

The thing that only matters is your plan should reflect all the main elements of your business, whether it is 15 pages or 30 pages with clarity.

Don’t worry if the ideal length of your business plan is still confusing, because you can always rely on a good business plan software like Upmetrics for writing a business plan. So, start writing, and all the best!

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About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Business Plan Length: How Long Should a Business Plan Be?

Fifteen to 25 pages is enough room to explain your business’ vision and excite readers to support your company. Importantly, your business plan is not supposed to answer every question someone might possibly have about your business. Rather, it is to give the reader a solid understanding of your business, and allow them to make an informed decision as to whether they should meet with you to take next steps such as to fund or partner with your business.

Having written thousands of business plans over the past 20+ years, Growthink’s business plan consultants have found 15 to 25 pages of text to be the sweet spot. 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 information. 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.

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These essential components, taken from our best business plan template , are as follows:

• Executive Summary
• Company Overview
• Industry Analysis
• Customer Analysis
• Competitive Analysis
• Marketing Plan
• Operations Plan
• Management Team
• Financial Plan

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 a business plan writer should make the body of document between 15 and 25 pages, the Appendix can be used for supplemental information, thus potentially making your full plan longer.

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, if you a printing it out, 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 plan, which will make them queasy before even opening it up.

To summarize, the goal of your 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 plan should take less time to prepare. Rather, the entire process will take more time. As Mark Twain once said, “If I had more time, I would write a shorter story.”

So, in answering how long should a business plan be, you can keep it short, yet quite compelling and comprehensive. While condensing your plan to a concise, strong document is challenging and time consuming, fortunately the rewards are significant.

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