How long should a business plan be? A business plan needs to be whatever length is needed to excite the investor about your business idea. The plan needs to provide a comprehensive view of the market and a plan for the execution of the management strategy. Typically, the average optimal length of an effective business plan is 15 - 25 pages. Any more than 25 pages and the time-constrained reader will start to skip sections of the plan and potentially miss important information about your strategy. Less than 15 pages and most investors will believe that the business idea has not been fully thought through and developed.

Many business owners feel that their company or vision is too complex to be summarized in only 15 - 25 pages. Although this is sometimes true, most businesses will be effectively summarized enough to start an investment discussion in less than 25 pages. The business plan is meant to present the essential elements of the business and to peak the investors interest not to tell the entire story of the business.

One of the most critical factors to a business plan's success is that it needs to be visually attractive and easy to read. Whenever possible and appropriate you should include charts and graphics that will keep your readers attention. Effectively using graphically appealing elements will allow the investor to quickly and easily understand the company's ideas and value within a few pages.

While the main body of the business plan should be 15 to 25 pages, you can provide additional information within the Appendix or separate supplemental documents. The main body of the plan should include summary financial information, but the appendix should include a full set of financial projections. Other areas that can be expanded upon in the appendix are technical drawings, customer agreements, full competitor evaluations, expanded marketing plans and analysis, maps, etc. Use the main body of the business plan as a teaser to the supplemental information.

The ultimate goal of your business plan is to create interest in your company. The plan should include the essential elements of the plan and give an investor information on why they should invest money and time with your business opportunity. It should peak their interest and prompt them to ask questions. Condensing your plan into a concise, compelling document will be challenging and time consuming. Fortunately an effectively written business plan will significantly increase your success.

Article written by Terri Sullivan owner of TLS Business Consulting.
http://www.tlsbusinessconsulting.com
Article not to be used without the authors permission