An executive summary is provided when you are looking for funding or finding partners to the business. It has brief statements about the business you plan to conduct, the service you provide, problem statement, the revenue that can be generated and the market you are targeting. This document is a precursor to the business plan wherein you provide more detailed information about the business. An effective executive summary is essential to get the needed capital and also to get investors excited about putting their money into your company.
Things To Include In An Executive Summary:
Introduction: A well-written executive summary should not be very long but still have the necessary details that put forward a strong case. It should start with the name, address, and location of the business followed by an introduction which makes a good read. If the investor or the bank read only the first paragraph it should grab the attention of the reader by mentioning the strongest attributes that your company has and also how you plan to resolve the issues.
The market you plan to target: Be specific about the target audience you aim to reach if the product or business does not convey the message. Also, the proposal should be as per the client you are proposing to and should be based on their needs. Use any relevant details like sales figures, facts and such to address specific issues and how the proposal aims at solving the problem.
Returns from the proposal: An executive summary will contain a general proposal but the client is interested in the results the solutions provide. It is thus essential to mention the returns they get from this proposal. A thorough research of the client is essential for this.
Do not include false data: It is best to avoid being generic and also to make oft-repeated statements which can lead to adverse effects. To beat the other competitors you should offer unique solutions and also provide proper information as opposed to making false promises and claims.
Review: After you finish your proposal ensure that your conduct a thorough review of the document. Provide a polished and professional looking doc which you are proud of and excited to share prospective clients.
Not All Business Plans Need An Executive Summary:
The executive summaries are written when you are looking for partners or for business loans or investors. It is written only if you are going out to approach people outside your business. This is not needed for internal purposes. A summary is a must if you are looking for loans or investors as this is the first thing they wish to see. Ensure that it is well-written so that it attracts the readers to go ahead and see the business plan.
More often than not, the executive summary is the only thing the readers read as investors, lenders are always busy. Thus this summary is a gateway for your business plan to be considered. It is extremely rare that a lender will read your business plan in the initial stages of consideration of funding hence a well-written summary is critical.