How to Write a Preface for a Business Plan
The preface of a business plan, also known as the "summary" or "executive summary," is a brief overview that identifies your company and highlights your key plans for growth. A solid preface answers the who, what, where, when, why and how of your business and makes a good first impression on the lender or investor reading your plan.
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Instructions
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Write the business plan. Although the preface is the first thing a lender or investor will see, for best results, you should write the preface last. Once you've laid out your organizational and marketing plans in detail in the business plan itself, you will easily be able to create a preface that touches on all the key points in the business plan.
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Plan to be brief. Most business plan prefaces are no more than one page in length. Sketch a quick outline that includes the most important information, including when the business began, what the business does, where it's located, who runs it and why it exists. Follow with a separate paragraph detailing why the business is seeking additional loans or investors, and how the business plans to use the received loan or investment to expand its operations.
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Be concise and specific. Use strong, accurate nouns and adjectives that describe what the business does. Stay away from sales rhetoric--most lenders and investors have read many business plans and can immediately distinguish a sales pitch from a solid, confident business plan preface. Avoid "weasel words" like "should," "could" and "possibly." The business plan preface should reflect your company's absolute confidence in its product or service and its firm belief that it can achieve the goals outlined in the business plan.
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Target your preface to your audience. Lenders want to know that the business has sufficient cash flow to make loan payments on time. Investors care that the business generates sufficient profits and want to know the business's true value. If you have not yet decided whether to approach lenders, investors or both, write a separate preface for each, and include the appropriate preface when you eventually send out the business plan.
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Include a "call to action" at the end. In a business plan, the call to action is usually a direction to contact the business for further discussion of the requested loan or investment. Include your contact information, such as phone number and email address, so the reader can contact you immediately without having to look up your contact information.
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Tips & Warnings
Ask a friend or colleague to read your preface. This reader should be left with the feeling that he or she wants to read the rest of your business plan for more information. If your preface fails to inspire your reader, ask her to suggest changes.
References
Resources
- Photo Credit Writing of business plan image by Vasyl Dudenko from Fotolia.com
