Business Plan Executive Summary - What is It?

By Charles Crawford

First, what the executive summary is NOT:

• It's not an overture or a prelude to the main body of the business plan - something that introduces the theme of the plan and sets the mood with sweeping imagery and generalities about "opportunity," "innovation," and "meeting needs".

• It's not only for summaries about the company's executives.

• It's not just an introduction to the business plan.

Now, what the executive summary is:

• It's your business plan in miniature, an overview.

• It must be clear, logical, interesting, and exciting.

• It's your best sales pitch, on paper.

What's the purpose of the executive summary? The main purpose is to spark the reader's interest. The first reader of your plan will probably be the decision-maker at a venture capital firm, an angel investor, or your banker. You have this person's attention for the time it takes to read the 1 to 2 pages of your executive summary. In that brief period you must deliver a longer version of your best "elevator pitch". Your reader will judge the quality of your idea and your team. If he or she is favorably impressed, your business plan will be referred to staff analysts for evaluation. If not, it goes to the trash.

Contents of the executive summary:

• Business description. What form it will take (corporation, partnership, or proprietorship) and whether it will manufacture, market, or provide a service. How will your business operate? State your goals and your strategy for achieving them. Include your mission statement.

• Products or Services. What are your products or services? Give a clear, concise description. What developmental stage are you in? What is your competitive advantage?

• Market. What's the demand for your product or service? What's your company's market potential? What's your customer base? Comment on your competition.

• Management. List the key members of your management team. Include biographical sketches and show why they are qualified to lead your company to success.

• Finance. Include basic financial information and funding requirements. Show how funds will be used. Summarize projected revenues and market share.

Tips:

• Write your executive summary after you complete the formal business plan.

• Stick to the essential information. Be concise. There's room in the rest of the business plan for elaboration.

• Use strong, positive language - but watch out for hype. If you come on too strong, you might turn off your reader.

• Close with a strong statement of why your company will be a winner.

Charles Crawford
http://www.businesswritingtoday.net/

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