When it comes to your executive summary you need to make it perfect. In essence it is your pitch to potential investors. It is the section of your business plan that introduces you and your business and the product and services that you will be offering your customers. You need to convince your readers that what you are selling is a great idea, and that they would be insane to pass up the opportunity to invest their money in your business.
What to Include
A standard business plan is fairly straightforward. According to Tim Berry, founder and president of Palo Alto Software, your executive summary should only be a page or two. When writing your executive summary, you want to make sure that the first paragraph includes the name of your business and its location, what products or services you plan to sell, and the purpose of your plan. This paragraph is a simple introduction to your business and what your plan is all about.
The rest of your executive summary is about highlighting the information that is included in the rest of your plan. You need to include the information that you don’t want potential investors to miss. Information such as your projected sales, expected profits, keys to success, unit sales, and profitability. You may want to include highlight charts that show this information, making sure that you explain the numbers thoroughly in the text.
What is the Length?
When it comes to the length of your executive summary you don’t want to waste words. According to Businessplanning.org a single page is the perfect length for an executive summary. You need to try to emphasize the main points of your plan as briefly as possible. The purpose of the executive summary is to lure your readers in rather than giving them a detailed description of your business; that is for the rest of your business plan. Try keeping each point to a maximum of three sentences.
Executive Summary Format
A standard executive summary should include a single page of text along with easy-to-skim subsections that highlight your main points with charts and graphics. The graphics should focus on your projected sales, gross margins, and expected profits for the next three to five years. After this information, most executive summaries are followed by the main objectives you have for your business, usually displayed as a bulleted list, your company’s mission statement, and the keys you have for success.
More info: Understand your financial future on Planwise.
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