FREE online courses on Business Plan Basics - The Essential Elements of a
Good Business Plan - PART 1 - The Executive Summary
The Executive Summary is the most important section of your
business plan. It provides a concise overview of the entire plan along with a
history of your company. This section tells your reader where your company is
and where you want to take it. It's the first thing your readers see. Therefore,
it is the thing that will either grab their interest and make them want to keep
reading . . . or make them want to put it down and forget about it. More than
anything else, this section is important because it tells the reader "why" you
think your business idea will be Successful.
The Executive Summary should be the last section you write.
After you've worked out all the details of your business plan, you'll be in a
better position to summarize it. And it should be a summary (i.e.., no more than
4 pages!).
- The
Mission Statement. The mission statement briefly explains the thrust of
your business. It could be two words, two sentences, a paragraph, or even a
single image. It should be as direct and focused as possible. And it should
leave the reader with a clear picture of what your business is all about.
- Date
business began
-
Names of founders and the functions they perform
-
Number of employees
-
Location of business and any branches or subsidiaries
-
Description of plant or facilities
-
Products manufactured/services rendered
-
Banking relationships and information regarding current investors
-
Summary of company growth including financial or market highlights (e.g.
your company doubled its worth in 12-month period; you became the first company
in your industry to provide a certain service)
-
Summary of management's future plans
- With
the exception of the mission statement, all of the information in the Executive
Summary should be highlighted in a brief, even bulleted fashion. Remember,
these facts are laid out in depth further along in the business plan.
- If
you're just starting a business, you won't have a lot of information to plug
into the areas mentioned above. Instead, focus on your experience and
background as well as the decisions that led you to start this particular
enterprise. Include information about the problems your target market has and
what solutions you provide. Show how the expertise you have will allow you to
make significant inroads into the market.
Tell your reader what you're going to do differently or
better. Convince the reader that there is a need for your service or product.
Then go ahead and address your (the company's) future plans.
To assist the reader in locating specific sections in your
business plan, include a table of contents directly following the Executive
Summary. Make sure that the content titles are very broad. In other words, avoid
detailed descriptions in your table of contents.
