How to Prepare an Executive Summary for a Business Plan

The executive summary is the first thing venture capitalists and potential investors see in any business plan. First impressions count, so it is important to make sure that the executive summary in your business plan is concise and to the point. If it isn't, investors may not read beyond the first page.

Things You'll Need

• Business plan software

Instructions

1. Understand that the purpose of an executive summary is to summarize the detailed sections of the business plan.

2. Explain your services. The executive summary must begin with a clear explanation of what goods and services your business will provide.

3. Describe your customer base. Investors and venture capitalists will want to know what consumers you will be targeting for your goods and services. Include how you plan to market your business to your customers. This will help investors determine the likelihood of the success or failure of your proposed business.

4. List all management personnel. Be sure to include the previous experience and expertise of all management, and awards and advanced degrees, if any, that management has earned. Details how you and your management's experience and qualifications will have a positive impact on the business.

5. Summarize the company objective. Include projected sales for the first through the third year of business and personnel costs. Explain how you plan to reach these objectives.

6. Write a mission statement to help potential investors and venture capitalists determine your goals and objectives for your business.

Tips & Warnings

• Don't focus too heavily on finances. Investors already know that you need start-up capital. They want to know how your business will achieve success.

• Remember to include information about your competitors and what you will do to differentiate your business from others that offer the same products and services.

Resources

• Read more about creating a business plan at Inc.