Final (Chapter 4)
What should you ensure about your Executive Summary? (list) If it includes all of the important points, you have a greater chance of an investor reading your entire business plan. -Your basic business concept makes sense - Your business itself has been thoroughly planned
-Management is capable -A clear-cut market exists -Your business incorporates significant competitive advantages. -Your financial projections are realistic. -Investors or lenders have an excellent chance to make money.
Even if your business plan is for internal use only, the Executive Summary is still crucial. The Summary is the place where you bring all your thoughts and planning together, where you bring together the different parts of your business, and where you sum up all that you propose.
Create the Executive Summary after everything else in this book is completed.
What is a narrative summary useful for?
For businesses that break new ground, either with a new product, a new market, or new operational techniques that require considerable explanation. It works well for companies with interesting or impressive backgrounds or histories.
What is an example of a dominant element inside your narrative summary?
Holding an important patent or the participation of a well-known entrepreneur can be highlighted.
Synopsis summary
It covers all aspects of your business plan and treats each of them relatively equally, although briefly. In addition, it tells the reader what you are asking for in the way of financing-- which you also state in your cover letter.
The Synopsis Summary
It is just the facts. It simply relates, in abbreviated fashion, the conclusion of each section of the business plan. Its advantage is that it is relatively easy to prepare and less dependent on a talented writer. The only disadvantage is that the tone of the synopsis Summary tends to be rather dry.
The Executive Summary Chapter Summary says
It is the single most important part of your business plan. It quickly outlines your basic business concept; it must motivate the reader to consider your plan as a whole. Know who will be reading your plan and target it to that audience accordingly.
What standards are there towards Length and Design of the Summary?
The Executive is short, which is an advantage for the reader. A busy funder must be able to read your Summary in five minutes. Thus, an Executive Summary should be no more than two to three pages in length. A one-page Summary is perfectly acceptable.
What are the two types of executive summaries?
The Synopsis summary and the narrative summary
How does a narrative-style Executive Summary compare to that of a Synopsis Summary?
The narrative summary is more like telling the reader a story. It can convey greater drama and excitement in presenting your business. The synopsis version is more straight-forward. It concludes each section of the completed business plan.
The Narrative Summary
This is more like telling a story; it can convey greater drama and excitement in presenting your business. You must convey the necessary information, use enthusiasm, and not use hyperbole.
What are some tips on the layout of your summary?
Use white space to make the page less intimidating. Bullet points can also be used effectively in the Summary. These techniques make it more inviting for the reader.
The Executive Summary Chapter Summary continued... Use the style of writing--synopsis or narrative--best suited for your business and writing abilities. While synopsis is more straightforward, a narrative style can create more drama.
Whichever style you choose, use clear, dynamic, and logical writing. Prepare your Executive Summary last, only after your entire plan is completed.
Ask yourself, who will be reading my business plan?
You can improve your chances for a positive reception if you know the answer to that question before you prepare your Executive Summary. Since the summary is what the reader reads first (and perhaps the only portion read at all), try to find out what "buttons" to push.
Be careful, however, not to tailor the Executive Summary for just one person at a bank or venture capital firm; your plan is likely to end up in the hands of someone else. Target your Summary to address institutional concerns rather than individual preferences.
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Do a little homework on your potential recipients and then organize your Executive Summary so the issues most important to each recipient are given precedence.
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Is the bank mostly interested in managers who have had previous business successes? Is the venture capital firm particularly interested in patentable new technology? Does the division president like to see new markets for existing products?
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It is imperative that you prepare the Executive Summary last. However, it appears first in your completed document. The Summary reflects the results of all your planning and should be crafted only after careful consideration of all other aspects of your business.
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The Executive Summary gives the reader a chance to understand the basic concept and highlights of your business quickly, and to decide whether to commit more time to reading the entire plan. Therefore, your goal in the Executive Summary is to motivate and entice the reader.
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Without a doubt, the single most important portion of your business plan is the Executive Summary.
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The Executive Summary is so important, in fact, that some venture capitalists prefer to receive just a Summary and Financials before reviewing an entire plan.If you want to send out only a "concept paper" to gauge investor interest before submitting a complete business plan,
the Executive Summary should serve as that document. As important as the financial considerations are to investors and bankers, it is the Executive Summary that first convinces them that yours is a well-conceived and potentially successful business strategy.
