Executive
Summary: Business Plan Basics
The executive summary is potentially the
most important section of your business plan.Ê It is normally
the first section of your business plan that investors will
read, and could be the last if it is poorly written. An executive
summary should briefly describe the company, the product or
service, and the unique opportunity your company is offering.
It should also provide a short description of your key management
team members and an outline of the investment you are seeking.
Don't forget to tell the reader why you need the money and
how and when they can expect to be paid back!
A good executive summary is essentially
a condensed but powerful summary of your entire business plan.Ê
It creates a first impression in your reader's mind of both
you and your business. Use clear and concise language - although
this applies to your entire business plan, it is especially
important in your executive summary. Use words that command
attention, and that get your reader excited about the opportunity
you are presenting.
The following excerpt is from David Gumprt's
book, "How to Really Create a Successful Business Plan". His
insight clarifies the importance of a powerfully written executive
summary:
Certainly the most significant part
of any business plan is its executive summary. Ê What is an
executive summary?Ê Probably the best way to begin defining
it is to explain what it isn't.
The executive summary is not an abstract
of the business plan. The executive summary is not an introduction
to the business plan. The executive summary is not a preface.
The executive summary is not a random collection of highlights.
Rather, the executive summary is the
business plan in miniature.Ê The executive summary should
stand alone, almost as a kind of business plan within the
business plan.Ê It should be logical, clear, interesting -
and exciting.Ê A reader should be able to read through itÊin
four or five minutes and understand what makes your business
tick.Ê After reading your executive summary, a reader should
be prompted to say, "So that's what those people are up to."
Limit the length of your executive summary
to no more than 2 to 3 pages and stick to the facts. Investors
are searching for evidence that justifies the soundness of
your opportunity, and that gets them excited about what you
intend to achieve. If your executive summary is clear and
concise, you are one step closer to impressing your reader,
and on your way to a terrific business plan.
For more information on writing the executive summary section
of your business plan:
Email
us at BizPlanIt if you have comments or suggestions about
our Virtual Business Plan.
|
