Investors, lenders, executives, managers, and other business
leaders are extremely busy. I equate it to the saying:
They say I have A.D.H.D. they just don’t
understand…oh look a squirrel!
That means that the Executive
Summary has to be compelling and leave an unforgettable first impression for
your business plan to get read. Sometimes the Executive Summary is the only thing the decision maker will
read. Your goal is to get in the door
and a great Executive Summary is the
key factor.
What
is an Executive Summary?
The Executive Summary
tells the reader where your company is, where you want to take it, and why your
business idea will be successful. If you are seeking financing, the executive
summary is also your first opportunity to grab a potential investor’s interest.
The Executive Summary should highlight the
strengths of your overall plan and therefore be the last section you write.
However, it usually appears first in your business plan document.
Business Plan for Existing Businesses
Company
Information
This section should include information about your business,
the names of the founders and their roles, how long you have been in business, type
of work you do, partnerships, number of employees and business location(s).
Highlights
This section should contain financial or marketing
highlights, projected sales and
profits, unit sales, profitability and keys to success. This is a great
place to put a colorful graph or chart to show sales, gross margin and profits.
Remember to follow each chart with an explanation of the numbers.
Product/Services
Describe your products and/or services.
Describe your products and/or services.
Financial
Information
A list of your current investors and your information about
the relationship with your bank and possible credit references and/or trade
partners would be important to mention here.
Future
Plans
Where do you want to take your business? What is the plan for the next three years?
Business Plan for Investors
Company
Information
This section should include information
about your business, the names of the founders and their roles, partnerships,
patents or technology, and special marketing approaches.
Problem
You must identify the problem that the
investor will solve.
Solution
How do your product and/or service solve
the problem?
Target
Market
Explain who your ideal customer is. It is not everyone but a specific group of
people or businesses that need your product and/or service.
Competition
Who is your competition and why are you
better?
Goals
What are the upcoming goals and how do
you intend to achieve them?
Guidelines
1.
Should
be two pages or less in length.
2.
Written
in language appropriate for the target audience.
3.
Consist
of short and concise paragraphs.
4.
Have
a conclusion.
5.
Should
be able to stand alone if the rest of the business plan or report is absent.
6.
Make
readers want to read the whole business plan.
Be compelling.
7.
Write
it after you have written everything else in your business plan. This way you can summarize and explain your
company.
Often an investor or business leader will
make a decision to continue reading a business plan with the impression the
executive summary gives.
References: http://en.wikipedia.org/wiki/Executive_summary, http://www.sba.gov/content/business-plan-executive-summary,
http://articles.bplans.com/writing-an-executive-summary/
