OluchyYour business plan should begin with an executive summary, which is a succinct, positive description of the company. The most crucial facts about the company are covered in an executive summary, which is typically one to two pages long and contains two-sentence summaries of each part of the plan. This article provides a step by step guide on how to write an effective Business Plan Executive Summary.
An executive summary serves as your business plan’s introduction and summary. It ought to outline your company, the issue it addresses, its target customers, and key financial figures.
The executive summary alone will be sufficient for potential investors to rapidly understand the essential components of your business plan. Afterwards, they can read more extensively about subjects that really interest them. Investors frequently base their initial decisions solely on reading an executive summary, so it’s critical to get it correctly.
An engaging executive summary engages the reader, clarifies your mission, and persuades them to read the whole of your business plan or proposal.
A business plan is generally used by new business owners or entrepreneurs to pitch their brilliant venture to prospective investors. Obtaining funding from investors or persuading bankers to grant a business loan are the two goals of the business plan.
It’s not just a basic outline; busy executives and potential investors might only read the executive summary of your business plan.
How is an Executive Summary put together?
Whether the company is a startup or an established company will affect the executive summary’s entire content. Yet, both have some characteristics. Every executive summary must contain:
- The company’s name and location.
- The value proposition of your business should outline what makes it unique compared to its rivals.
- The market need(s) that your company fills, along with supporting data.
- How the goods and/or services of your business fit that requirement.
- A description of your rivals and how your business is better than them.
- A breakdown of your target audience and clientele.
- A description of the management team of your organization and how each person contributes to its success.
- An explanation of the company’s present stage of development.
- A financial overview that accurately and convincingly projects sales and earnings for the following three years.
- If you’re asking a financial institution for money, be explicit about how much you need. Indicate the percentage ownership of the company you are offering investors in exchange for their capital.
- A list of the most important achievements thus far and your long-term objectives.
What word count is appropriate for an Executive Summary?
Executive summaries should as a general rule, be as brief as feasible. Your audience’s time and attention are both limited, so they need as little time as possible to learn the specifics of your company plan.
If at all feasible, try to keep your executive summary to no more than two pages, however it may be longer in extreme cases.
How to write an Effective Business Plan Executive Summary: Step-by-Step Guide
Your organization and business plan will be specific to your executive summary. Follow the five steps below when writing your executive summary, and you are sure to get an awesome result.
Step 1 – Draft a business plan
The executive summary will skim over the most important points included in your business plan. Due to this, you should first draft the whole business plan before working on the executive summary. Only information from the business strategy should be included in the executive summary.
Develop a detailed business plan. Avoid being vague. Numerous possibilities give off the impression of uncertainty and indecision, which repels potential investors.
Step 2 – Make your introduction interesting
Depending on your audience, “interesting” can mean different things. If you work in the tech sector, for instance, you may incorporate a quick narrative or a startling tech trend in your introduction.
The introduction ought to be pertinent to your company and draw the audience in. Clearly stating your company plan’s goal and what the reader can anticipate finding there is equally important. Construct the executive summary.
Step 3 – Examine your business plan and note the most important details for your executive summary.
Touch briefly but thoroughly on each of the major points in the company plan. You can talk about your marketing strategy, your target market, your company’s description, your management group, and more.
Your business plan should be clear enough for readers to grasp it without reading the remainder of the paper.
They should be able to comprehend your fundamental plan from the summary, but ideally it will be interesting enough to persuade them to finish the work.
Step 4 – Organize and edit your document
Include the most important information at the start of your executive summary so that it flows with the rest of your business plan’s contents. Using a list with bullets can help you highlight your major points.
Check the document again for precision and clarity. Eliminate jargon, buzzwords, facts that are repeated, qualifying terms, and statements that are not supported by evidence. Make sure your executive summary may be used independently if necessary.
Step 5 – Look for Professional Help
A professional writer or editor can ensure that your text flows well and covers the points you’re attempting to make because the majority of business owners aren’t proficient writers.
Finish on a positive note. A few phrases at the end of your executive summary should explain to the reader why your company will succeed. Avoid doubtful words like “maybe” and keep your language upbeat and assured.
In conclusion, your executive summary should provide a two-page maximum preview of your business plan. Write your executive summary after your business strategy is finished, and enlist outside assistance if necessary. The time and money you invest in creating a solid, interesting business plan and executive summary will be well worth it.
Don’t oversell, but keep the tone positive. Ordinary hazards should not be mentioned, but it is acceptable to identify unique difficulties. But make sure to continually emphasize the advantages. Write clearly and in everyday words.
Your executive summary should be simple enough for someone who is unfamiliar with your industry to grasp and appreciate the opportunity it offers.
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Emmanuel Chijioke
Oluchy