In publishing hundreds of business plans over the last three decades, I am sure that I have reviewed, revised and corrected every one of them. I believe that every business plan contains a compelling executive summary. One that compels a potential customer or client to read the remainder of your business plan.
The approach that I take when preparing that executive summary is the same one I use when I am writing a different business plan. I start by describing the “problem” of the market. I use words that paint that picture so that it is vivid and compelling to investors, staff, or whoever would be using your product or service. Then I quantify the “problem”; lay out the issues and obstacles, and describe them so that I appeal to the need to eliminate, minimize or mitigate them. Next, I describe how my solution addresses the needs, the problems, and the costs associated with the associated issues. Finally, I draw my conclusions and open the plan to discuss the plan’s potential risks to the business and to other financial resources.
It has proven to me that you can dramatically improve the chances that you will obtain funding and that your funding will be effective, if you craft a compelling executive summary. The executive summary briefly overviews the proposed business and these problems that should be solved by your product or service. A business plan focused around the executive summary is one that is more likely to close business and be read and understood by decision makers.
Begin your executive summary by stating that you will be generating this paper in the first place, of course, but drawing out the problem, outlining the associated issues, and presenting and quantifying costs and outcomes are means few are likely to not only read the rest of your business plan but also act on it.
The cover page of your executive summary should be slightly different in form. It should lead to a page on your website; preferably with similar content. Your cover page should look something like this:
For about a year and a half now I have been developing a company for the purpose of the exciting and potentially profitable project of being the world’s largest paper manufacturer. At the moment, we employ over 150 people who work in over 150 factories across the country. We also manufacture for a number of other companies both on and off the web.
With your business plan, I believe that you will find the “problem” interesting? Located within your companyExecutive Summary
The opening can serve to direct the discussion that follows. The nature and nature of the problem you are describing in this section of your business plan should inspire a possible investor to want to learn more and turn the page to read more, and to make a decision to comprehend the rest of your proposed plan for your business. The purpose of the Executive Summary is to direct your customer to the rest of the pages of your business plan.
And, while the Executive Summary is likely to be the first thing a customer or client will read in your proposed plan, it should not be the last thing you write. Both your website, and business plan, should be ongoing documents and agreements to which you can refer.
The executive summary, I believe, is one of the most powerful tools you have to direct the reader’s attention to your business, its needs, and your business plan. I encourage any and all readers to take advantage of this opportunity to lead them to the proposed solution and to your product or service.
