Basic Business Plans: Executive Summary
Know What You Do by Saying Who You Are
Things you'll learn:
- How to summarize the company for your business plan.
- Why you need a business plan and summary.
All of the sections you've looked at labeled “Basic Business Plan” can be put in one document. Use this to define who you are, how you make money, what kind of business you won't do, and what your service provides to your community.
All of this info is from the Small Business Administration.
The executive summary is often considered the most important section of a business plan. This section briefly tells your reader where your company is, where you want to take it, and why your business idea will be successful. If you are seeking financing, the executive summary is also your first opportunity to grab a potential investor's interest.
The executive summary should highlight the strengths of your overall plan and therefore be the last section you write. However, it usually appears first in your business plan document.
What to Include in Your Executive Summary
Below are several key points that your executive summary should include based on the stage of your business.
If You Are a Startup or New Business
If you are just starting a business, you won't have as much information as an established company. Instead, focus on your experience and background as well as the decisions that led you to start this particular enterprise.
Demonstrate that you have done thorough market analysis. Include information about a need or gap in your target market, and how your particular solutions can fill it. Convince the reader that you can succeed in your target market, then address your future plans.
Remember, your Executive Summary will be the last thing you write. So the first section of the business plan that you will tackle is the Company Description section.
If You Are an Established Business
If you are an established business, be sure to include the following information:
- The Mission Statement – This explains what your business is all about. It should be between several sentences and a paragraph.
- Company Information – Include a short statement that covers when your business was formed, the names of the founders and their roles, your number of employees, and your business location(s).
- Growth Highlights – Include examples of company growth, such as financial or market highlights (for example, “XYZ Firm increased profit margins and market share year-over-year since its foundation). Graphs and charts can be helpful in this section.
- Your Products/Services -- Briefly describe the products or services you provide.
- Financial Information – If you are seeking financing, include any information about your current bank and investors.
- Summarize future plans – Explain where you would like to take your business.
With the exception of the mission statement, all of the information in the executive summary should be covered in a concise fashion and kept to one page. The executive summary is the first part of your business plan many people will see, so each word should count.