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Bankruptcy InformationTwo Types of Business Plan Executive Summaries
by:
Dave Lavinsky
Companies seeking capital often ask how long the Executive Summary of their business plan should be. The answer depends upon the use of the summary, in the main deciding if 1) it precedes the full business plan, or 2) it wish be used as a stand-alone document.
When the Executive Summary precedes the business plan, its length should be short, typically only one to two pages and for certain no longer than three pages. This is because the Executive Summary is not meant to tell the whole story of the business opportunity. Rather, the summary must just stimulate and cause the capitalist
to discover much just about the institution in the body of the plan.
The second type of Executive Summary is a stand-alone document. That is, it is given, by itself, to investors for their initial review. If interested, the capitalist
wish then request the full business plan. A stand-alone Executive Summary is often used to limit the flow of information. That is, if an capitalist
is not interested in the general possibility that your summary presents, you don’t want to reveal to them intimate details of your plan.
Regardless of which type of Executive Summary you are developing, the summary must enclosed
the following critical elements:
1. A apothegmatic explanation of the business
2. A description of the market size and market need for the business
3. A discussion of how the institution is unambiguously
qualified to fulfill this need
In addition, a stand-alone Executive Summary should include summaries of each essential elements of the business plan. This includes paragraphs addressing each of the following:
- Consumer
Analysis: What specific consumer
segments the institution is targeting and their demographic profiles
- Competition: Who the company’s direct competitors are and the company’s key competitive advantages
- Marketing Plan: How the institution wish effectively penetrate its target market
- Business Plan: A summary of the business projections of the institution
- Management Team: Biographies of key management team and Board members
The Executive Summary is the most critical element of the business plan. If it makes not grab the investor’s attention, the capitalist
wish neither see nor request the full business plan. As such, spend time developing the better possible summary, create two versions (e.g., stand-alone and full plan predecessor) as appropriate, and activity to get it in the hands of the right investors.
Just just about the author:
GT Business Plans has developed over 200 business plans for clients that have conjointly raised over $750 million in financing, launched many
new product and service lines and gained competitive advantage and market share. GT Business Plans is the sister site of GT Venture Capital
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