I once read a syndicated column by David Gumpert. The column argued that you don’t actually need a business plan. More recently, Mr. Gumpert has authored a book entitled, Burn Your Business Plan!

His writing does a disservice to entrepreneurs by suggesting that business-owners do not need business plans to be successful. It is pure fiction that you can successfully operate your business without a plan.

Prospective entrepreneurs often ask how many pages their business plans should be. There is no correct answer to this question. Every business is different, so the right scope and length and form of every business plan varies significantly. Mr. Gumpert’s column discussed business plans as twenty or thirty-page documents that require one hundred or more hours to write. (No wonder he argues that business plans are unnecessary.) The reality is that a five-page business plan can be sufficient for one business, while another might require a thirty-pager. It just depends.

As for how long it takes, I write business plans, and I have never spent a hundred hours writing one. It does take a ton of time to properly research and plan a new business, but it need not take so long to organize the information or to put it to writing.

So, instead of concentrating on what you don’t need, let’s concentrate on what you do need. Your business plan might be a formal presentation, especially if you are looking for financing. Or, your business plan might simply consist of a file folder full of pertinent information. Remember that, above all, the business plan is a tool to guide you. You and your employees are the audience. Whatever form works best, is the form the plan should take. Here are the minimum components of a business plan:

Your "competitive advantage" is simply whatever you do differently or better than the others. It is the essence of your business and your business plan. You must understand your competitive advantage and be able to communicate it effectively.

If you own a coffee shop, are you really selling coffee? Or, is your attraction the convenience or location of your shop? Is it the place where the cool kids hang out, or do customers come in to buy the baked goods or chocolates that you carry? Maybe it is the coffee. You must communicate whatever "it" is to your employees, prospective customers, and to readers of your business plan. If your employees cannot accurately repeat your competitive advantage, then consider constructing a written statement for them. Similarly, anyone who reads your business plan must come away understanding your competitive advantage.

Who is your competition? What is their competitive advantage? Maybe they have a drive-through or doughnuts. Do you have indirect competition? Many people buy coffee at the grocery store and make it themselves at home or at the office.

Your customer list is another piece of your business plan. Exactly who are your customers? Do you have pending orders or a big new contract? If you’re new or growing, then you must also have a list of prospective customers. Where will you find new customers? Have you tried a survey or set up a booth at a trade show?

How do you get the word out? This doesn’t have to be difficult. You must be advertising or communicating with your customers in some way, so provide some examples. Your business plan should include sample advertisements, press releases, newsletters, or websites. Just copy them, and put them in. You should also detail the costs of such printing and advertising. What is your advertising budget? Similarly, provide a menu or list of products or services you offer. How much do you charge?

Just make a list. Copy or print out their contact information and their prices and terms.

Finally, you must present financial information. If your business or project is new, then detail the start-up costs. You absolutely must make a detailed list so you will know how much money you need to invest and so financing sources will know exactly what they are financing with how much money. This research will take some time.

If you’re already in business, then print out your financial statements. What might be different next year from this year? You should also make projections. Many items are difficult to predict, and often projections are simply too good to be true. For this reason, some argue that they shouldn’t be taken seriously at all.

A good business planner will use the following strategies to create reasonable projections. Many items such as rent and insurance are fairly easy to budget. Make sure you get these right. Don’t worry about the more speculative numbers. Instead, concentrate on the assumptions that you use to come up with them. For example, make sure that your sales projection is supported by the detail of exactly how many customers purchase how many products at which prices. Then, you or the readers of your plan can decide whether the assumptions are reasonable, and you can alter the variables to see how the bottom line is affected.

If all goes well, your bottom line will grow precisely because you have some form of a business plan.