Define What an Executive Summary Is Regarding Business Plans
Anyone who's ever wanted to attract investors for a new business has probably written a business plan. The plan covers everything from the initial business concept to how it will be marketed and what it will cost to start. The business plan also includes an executive summary, which summarizes the key points of the plan, usually in one page or less.
Other People Are Reading
-
Elements of an Executive Summary
-
An business plan's executive summary usually consists of several elements that together summarize the entire plan. These elements include the business's concept and purpose, its primary market and competitive advantage, financial information about the company, details of the company's financial needs, a description of the business's current condition and the purpose of the business plan itself.
Business Concept and Purpose
-
The first part of the executive summary should describe the business's core concept -- the product or service it will produce, what the primary market will be and the business's purpose. For example, a company selling baby apparel might state its purpose as, "To provide families with babies the safest, most comfortable clothing in the world."
-
Market Description and Competitive Advantage
-
Next, the executive summary should describe the current condition of the company's major market, including market trends, key market segments, possible changes to come, the company's major competitors and factors that will give the company a competitive advantage over them.
Financial Condition of the Company
-
The financial condition of the company should be described in terms of current profits, company cash flow or return on investment if the company has already begun operation. If not, the summary should describe an initial total budget and summarize how that money will be spent.
Financial Requirements
-
Describing the financial requirements of the company is critical to communicating exactly what the business plan is for -- raising capital. This section should describe not only the funds to be raised, but how the funds will be used and what (such as equity or shares of stock) will be exchanged for the funds.
Current Business Information
-
If the business has already been established, the executive summary should also include relevant data about the company -- its business structure, date of formation, ownership, the principle individuals involved and a description of their qualifications.
Purpose of the Business Plan
-
Finally, the executive summary should conclude with the purpose of the business plan, whether it is to fund a startup, raise capital for expansion or secure a loan. For example, the purpose of the business plan for the baby apparel company might be, "to fund the development of a new line of baby apparel made exclusively with alpaca fur."
-
References
Resources
- Photo Credit business plan 1 40309 image by pablo from Fotolia.com
