Two types of Executive Summary Business Plan

Companies seeking capital often ask how long the synthesis of their business plan should be. The answer depends on the use of the summary, mainly determining if 1) precedes the full business plan, or 2) will be used as stand-alone document.

When the Executive Summary precedes the business plan, its length should be short, usually only one or two pages and certainly no more than three pages. This is because the summary is not intended to tell the whole story of the business opportunities. Rather, the summary must simply stimulate and motivate the investor to learn more about the company in the body of the plan.

The second type of synthesis is a stand-alone document. That is because, in itself, to investors for their initial review. If you are interested, the investor will then request the full business plan. A stand-alone synthesis is often used to limit the flow of information. That is, if an investor is not interested in the general possibility that presents the summary, you do not want to reveal to them the intimate details of your plan.

Regardless of which type of synthesis is developing, the summary should include the following critical elements:

1. A concise explanation of the activities

2. A description of the size of the market and the market need for business

3. A discussion of how the company is uniquely qualified to meet this need

In addition, a stand-alone Executive Summary should include a summary of all essential elements of the business plan. This includes paragraphs on each of the following:

- Analysis of guests: What specific customer segments targeted by the companies and their demographic profiles

- Competition: Who are direct competitors of the company and main competitive edge

- Marketing Plan: How the company effectively penetrate its target market

- Financial Plan: A summary of financial projections of the company

- Management Team: Biographies of key management team and Directors

The Executive Summary is the most critical element of the business plan. If you do not capture the attention of the investor, the investor will neither read nor request the full business plan. As such, spend time developing the best possible summary, create two versions (for example, stand-alone and full plan predecessor) as appropriate, and work to get into the hands of the right investors .......