A business plan is a formal document that describes how the company plans to reach its goals and includes sales and marketing strategies with a detailed financial background. In the past, consultants and business people recommended a formal document with at least 20 pages. Nowadays things have changed, and, although there are still consultants and some business sectors that promote the traditional format, one page business plan or an informal plan is completely acceptable.

How do you decide the best option for you?

The number of pages is relative, and it would be too simplistic to make a decision based on the number of pages. Business plans have evolved over the years and entrepreneurs realized these plans were too rigid and not practical, becoming a document to keep in the drawer and forgetting about it. This is particularly true in the start-up community, where a lean thinking approach is definitely more common.

So, before starting your business plan, you should ask yourself:

In what industry am I going to operate? Whom do I need to talk to?

If you decide to start your own business in technology, you are in an industry more flexible and agile, where lean thinking is the core. In this case, 1 page business plan or a PowerPoint presentation is very welcomed and appreciated.

If you decide to pitch your idea to investors, ask your bank for a loan or create a partnership, it becomes critical to have a more formal version and the 20-page format is preferred.

Depending on your use and purpose, you can decide if and how to prepare your business plan. Remember that a business plan is the document for investors, banks and other financial institutions, but it’s also your plan of action, your roadmap. It doesn’t have to be perfect and it can be one page diagram or a business model canvas, but it helps you to stay focused and organized, and eventually change direction when it’s needed.