The executive summary is one of the key elements of a business plan as it summarizes the entire proposition. This section formally introduces and summarizes the business plan in terms of the current position of the business and critical elements for success. It also provides the important financial projections. Though any reader of a company’s business plan will first go through the executive summary before delving into the details, it is written after all other aspects of the business plan are covered in detail. It is, therefore, very important that the executive summary is written with a view to grab the attention of the reader. If this section catches the reader’s attention, he/she will be enthused to go through the other elements of a business plan in detail.
The purpose of providing an executive summary is to give an overview of the business plan to the reader. This section of the business plan must, therefore, include the following details:
•A description about the company and the products or services provided.
•The mission statement.
•Brief details about the company’s management.
•Market and target customer details in brief.
•General information as to how marketing and sales is organized.
•Some information about competition.
•Some details about the operations of the business.
•Financial plans and projections.
Brevity is the key to catching the attention of the reader of the business plan. Write only one to three sentences about each of the topics mentioned above, but ensure that all the salient elements of a business plan are covered. Typically, a well written executive summary may range from half a page to two pages, depending on the size of the business and its operations. The risk of losing the reader’s attention is higher, if the summary is longer. It is recommended that the executive summary is restricted to one page.
The language used in the executive summary should be strong and positive, reflecting the management’s commitment to the different key elements of a business plan. It is also important to focus on the flow and if required it must re-read and changes incorporated to ensure that it does not sound choppy to the reader.
Another important aspect to be kept in mind, when preparing the executive summary, is that it should be appealing to your target audience. For example, if the requirement is to organize investment for a new project or capacity enhancement, then the summary should highlight the opportunity presented by the market and the returns that the investors can expect. In short, the executive summary should be tailored in such a way that it meets the requirements of the purpose for which it is intended.
An executive summary of a business plan must always be finished with a couple of clinching closing statements. This will make it clear to the reader as to why this business will become successful.
In conclusion, the executive summary is one of the most important elements of a business plan and it must provide an overall picture of the business. It should contain all the important aspects that contribute to make the business successful.
The purpose of providing an executive summary is to give an overview of the business plan to the reader. This section of the business plan must, therefore, include the following details:
•A description about the company and the products or services provided.
•The mission statement.
•Brief details about the company’s management.
•Market and target customer details in brief.
•General information as to how marketing and sales is organized.
•Some information about competition.
•Some details about the operations of the business.
•Financial plans and projections.
Brevity is the key to catching the attention of the reader of the business plan. Write only one to three sentences about each of the topics mentioned above, but ensure that all the salient elements of a business plan are covered. Typically, a well written executive summary may range from half a page to two pages, depending on the size of the business and its operations. The risk of losing the reader’s attention is higher, if the summary is longer. It is recommended that the executive summary is restricted to one page.
The language used in the executive summary should be strong and positive, reflecting the management’s commitment to the different key elements of a business plan. It is also important to focus on the flow and if required it must re-read and changes incorporated to ensure that it does not sound choppy to the reader.
Another important aspect to be kept in mind, when preparing the executive summary, is that it should be appealing to your target audience. For example, if the requirement is to organize investment for a new project or capacity enhancement, then the summary should highlight the opportunity presented by the market and the returns that the investors can expect. In short, the executive summary should be tailored in such a way that it meets the requirements of the purpose for which it is intended.
An executive summary of a business plan must always be finished with a couple of clinching closing statements. This will make it clear to the reader as to why this business will become successful.
In conclusion, the executive summary is one of the most important elements of a business plan and it must provide an overall picture of the business. It should contain all the important aspects that contribute to make the business successful.
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