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What Should the Length for a Business Plan Be
A business plan does not have to be the size of a dictionary but should be longer than a few pages.
Ideally, you should be able to explain your product, market, sales strategy and all other salient details in 15 to 20 pages. That page count does not include exhibits and other reference material that you might want to use to support the main text.
Even at 15 pages, though, your business plan will still be too long for some busy financiers to read. For those who are hit with dozens of business plans every day, you'll want to include a one-page executive summary. The executive summary should touch on everything that your full business plan does. Think of it as a mini business plan.
1. Cover sheet
2. Statement of purpose
3. Table of contents
I. The Business
A. Description of business
B. Marketing
C. Competition
D. Operating procedures
E. Personnel
F. Business insurance
II. Financial Data
A. Loan applications
B. Capital equipment and supply list
C. Balance sheet
D. Breakeven analysis
E. Pro-forma income projections (profit & loss statements)
Three-year summary
Detail by month, first year
Detail by quarters, second and third years
Assumptions upon which projections were based
F. Pro-forma cash flow
III. Supporting Documents
Tax returns of principals for last three years Personal financial statement (all banks have these forms)
For franchised businesses, a copy of franchise contract and all supporting documents provided by the franchisor
Copy of proposed lease or purchase agreement for building space
Copy of licenses and other legal documents
Copy of resumes of all principals
Copies of letters of intent from suppliers, etc.
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