A Business Plan Executive Summary

The Executive Summary in a Business Plan is also known as the Management Summary. It should be a preview of everything you would cover in a five-minute interview. It should be two pages or less and written once you have completed every other section of the business plan.This section is very important, quite possibly the most important. The Executive Summary is sometimes the only section read out of the entire Business Plan. It should briefly, and clearly, explain the basics of your proposed business. Typically, there will be a general structure of an Executive Summary. Your summary should contain information about your:

• Mission: what you want your business to accomplish
• Business Description: give a brief description about the nature of your company. This must convince stakeholders and possible investors that your company has something new and unique to offer. It should also give assurance that it will succeed in that market.
• Company Background: brief description of the history of the company.
• Products/Services: explain why the product or service you are selling fills a need. Describe the differences between you and your competitors.
• Technologies: talk about any advantages you may have due to a new device or system under the protection of IP or patent law. Provide evidence on how this will help your business and identify any dependencies.
• Markets: give a clear description on your target market and any segments that may exist within it. Include a chart showing potential market size and growth, and be sure to mention your revenue model.
• Distribution Channels: explain how you intend to sell or distribute your product or service.
• Competition: include a list of any current or potential direct or indirect competition. Describe the outlook and dynamics of the market you will be operating in.
• Financial Projections: include a chart showing your revenue and operating income for the next year. Including an additional four-year plan is encouraged but not mandatory.
• Solution Management: CEO, CTO, Finance, Marketing, Product Development, etc.
• Industry: basically, data management.
• Number of Employees: how many people you need to run the business smoothly.
• Financing Sought: how much money you need to get the business running or staying afloat.
• Use of Funds: give a detailed description on how you intend to use the money given. The money must go towards the business and may not be used to pay off any previous business loans.
  

Try to be enthusiastic, yet professional. If you aren't excited about your business idea, then why should the bank?

The executive summary should be able to stand alone, that is, be read separately from the rest of the plan. In essence, this document is a perfect miniature of the larger, more detailed plan and may be read in its place. Remember, the plan should also:

• Be about 10 percent of the entire business plan
• Be written in a language appropriate for the target audience
• Consist of short clear paragraphs
• Begin with a summary
• Be written in the same manner of the main report
• Only include and address the material presented in the main report
• Have a conclusion