SECTION I - EXECUTIVE SUMMARY


 

Suggestions for writing Executive Summary section

1. Think of this one- to two-page overview as the business plan in miniature. While there are a

number of sections to it, each may only be a few sentences or paragraphs long. Note the example

charts on pages 101 and 102 as ways to condense information.

 

2. Write this section of the business plan last. Some will tell you to write it first to help focus

your effort to build confidence as you tackle the plan, etc. Good reasons all. But in terms of

economy of effort it will take far less time if you write it last. As you write the body of the plan

try highlighting key ideas/sentences in the various sections. Use these to write your Executive

Summary. Also, as a summary of the key elements, you can't really write it before you have all

the key elements, which you won't have until you've done a significant amount of work on the

business plan.

 

3. Logically, we've placed the Executive Summary first - that's where it will appear in the final

document, but you should really write it after you've written and revised the entire plan.

 

4. This is your opportunity to make a good first impression. Often investors decide in a few

minutes, while reading the Executive Summary, whether to read on and/or invest. This is the

critical element of the business plan. Therefore:

* make it concise, two pages maximum in length.

* emphasize only the important elements of the business.

* make the financial request clear. How much is needed, how will it be used in the

business, and how/when will it be repaid?

* write to capture the readers' attention, to spark enthusiasm for your business.

 

5. Investors want to know who your attorney and accounting firms are. If you don't have

them, establish the relationships now.

 

6. Are there any international considerations for your business, either as potential markets

or potential competitors?

 

Resources Needed to Write Your Executive Summary:

Start with a draft copy of the completed business plan with spreadsheets. Writing is ALWAYS

better by going through revisions. Lacking that, you will need the following items:

1. A paragraph-long mission statement worked out in advance.

2. Historical information on the company, when it was started, by whom, etc.

3. Quantified company-level goals and objective(s).

4. Biographies or resumes of the management team with their unique strengths highlighted.

5. Product/service description materials.

6. Market research information on the potential market and target market.

7. A justified estimate of the capital you need and a plan for repaying it. How much is needed

and how did you determine the amount?

8. Financial data on:

-size of the market in units and dollars.

-projected revenues, profits, assets, and liabilities.

 

Read the questions under each heading. Choose which questions will apply to your business

plan and write down your responses.

 

Mission Statement

For help in completing this section, check SBM:EB pp. 77-78 (mission statement), pp. 6466

(corporate ethical responsibilities), and pp. 476-484 (for capital requirements).

 

1. Why does your company exist?

-To serve a customer, to make a profit, of course, but why else?

 

2. What are the guiding principles or values for your company?

-How will you do business?

-What is your position on the environment, diversity, community responsibility, etc.?

-What is your responsibility to your customers, to your investors?

 

Company Information

 

1. Objectives - What is it that you want to accomplish, and by when? They should be stated in

such a way that their accomplishment creates a competitive advantage.

-Do you have any international aspirations?

 

2. \\'hat is/are your competitive advantage(s)?

 

3 Company history – give the background of the company.

 

4. The management team--who are you, and who are your key people?

 

Market Opportunity

1. What is the expected size and growth rate of your market?

 

2. What is your fundamental marketing strategy?

-Cost leadership.

-Differentiation.

-Focus.

3. What relevant industry trends should your investors know about, early in this plan?

 

Financial Data

1. The financial request.

-How much do you want? How will you use it?

-How much debt and equity? Number of investors sought?

-What are the terms of the deal you are offering investors?

-What return are you offering?

 

2. Tables

Summary of 3 years actual and projected

Actual 20xx

Projected 20xx

Revenue

$

$

Net Income

-

-

Assets

-

-

Liabilities

-

-

Net Worth

-

-

Summary of Financing

Current Amount

Amount Needed

Debt

$

$

Debt with Warrants

-

-

Convertible Debentures

-

-

Stock--Preferred and Common

-

-

 

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