Writing the Executive Summary of a Business Plan
The executive summary section of a business plan is one of the most important sections of every winning business plan. As a result, most business planning and management experts pay keen attention to this part of the project. If it is well written and presented, be sure of your concept attracting potential investors' attention. Experts’ advice is that the executive summary must be written last after completing all other business plan sections. We are here to guide you in writing your next successful business plan.
What is an Executive Summary?
The executive summary of your business plan briefly describes your main business strategy. It is usually short, concise, and well written. This marketing document contains the basics of your business, including financial considerations. Aside from describing your business strategies, it also aims at luring potential business partners to invest in your idea.
Purposes of an executive summary
- To build investors’ confidence in your business
- To raise funds
- Describe the brain behind yourbusiness
- When seeking venture capital, it is the first document perused
Things to consider when writing Executive Summary
- When writing an executive plan, be precise and concise. Every statement you make should be accurate and straight to the point. It should briefly describe your business ideology while still being convincing.
- You should preempt potential investors' questions and answer them through your summary.
- Your executive summary should be factual and not based on assumptions. Every point you make in it must be based on in-depth analysis.
- If possible, you can use statistics or data to make your points more straightforward.
Executive Summary Structure
Your executive summary should be well-structured and eye-pleasing to entice the reader to read more. Thinking of how to structure your work, here are the steps it should follow.
- Company description
It is where you describe your company and what it stands for. It should outline when the company was formed, products and services rendered, assets, and company structure. You can also highlight the company’s sales, profits, or losses at the time of writing.
- Project description
At this point, you need to sell out your business for the required investments. You tell investors about your business idea or potentials in the business you seek to start. They should know the commercial viability of the venture.
- Business Goal
What are the short term and long term goals of your business? Your business goals should be time-specific and offer investors when they can make dividends from their investment.
- The Problem and Its Solution
What problem have you identified, and what solutions does your business seek to provide? Every problem comes with its opportunity, and the opportunity is you selling solutions to the problems. So readers would want to know what effective solutions you are coming up with.
- Market Opportunities
What are the long-term and short-term opportunities there is for an investor? What is the industry's market size, and how much of it do you intend to take? Every investor wants to know this before making a move.
- Business model
An executive summary should describe your revenue wheel to readers. How do you intend to sell your products and services, and how you can generate your stated profit margins. What competitive advantage do you have over existing businesses?
It would be best to make all these and more clear to readers as you write your business plan executive summary.