The Business Plan’s Executive Summary

The business plan consists of a few parts and of these few parts each have their own lengthy detail that should be included. For example, I will start with the executive summary and move on from there. While each of these sections have a their own unique portions that will need to be crafted and written in detail to the best of the writers ability, it is important to remember that the business plan is the one document where you don’t want to use the methodology less is more.

While this first document of your business plan is one of the most crucial parts, it is also the last piece you are going to want to write in your business plan. I am starting here with the executive summary because well, I have to write at least a dozen or more. That’s not to say that I have started a dozen or more businesses but I have consulted on many and helped with the development or some. The first step in understanding the executive summary is to get a grasp on what exactly it is, it is a snapshot, a brief of what your business is intended to be, also known as the highlights of what is going to be a very successful business.

Now if you have never done an executive summary you may find it to be very challenging to fit so much information within one maybe two pages but remember that an executive summary is a snapshot of your business. This is the reading material that you will present to the future shareholders, to obtain funding, and executives in financing that are involved in the decision making process will read it to determine if you are worthy of funding. So, what is involved in the executive summary other than the fact that we know that we write it last and it is a snap shot of our small business.

In this summary you will need to identify what your product or service is, how it is beneficial to the market, and how the market has enough room for you to grow, if there are similar products to the one you are offering. While the executive summary talks briefly about your company there is also the need for you to include your mission statement within your executive summary. The mission statement should be clear and concise and very straight forward as well as no longer than one or two sentences long. I am listing in bullet points exactly what should be listed in a snapshot view within your executive summary.

                               I.            What your product is

                            II.            When you established your company

                         III.            financial projections

                         IV.            What experience you or your staff has with in the business field

                            V.            Market research data

                         VI.            What are your plans for funding and capital

                      VII.            Mission statement

The list above doesn’t doesn’t have to be in a certain order; a prime example is that your mission statement can come very last or it can be your introductory statement before stating the snapshots of your business. The key element when writing a business plan executive summary is to keep it brief and straight forward, make sure it has a fluid approach and is easy to understand. It is also just as important when crafting your executive summary that you also write it as a narrative but capture the reader’s attention quickly and continue to hold their attention to make them want to continue to read the entire executive summary.

Although, may be you’re not skilled at writing a business plan and you don’t know how to begin to write an executive summary or a mission statement. A couple of points that may help you begin to draft your executive summary are: what are some of the company’s top priorities? What are some of the company’s growth potential that you can see if given a chance to break into the market? Setting priorities is a good way to really get the brain storming going when you have to take a good hard look at your own creation or your small business investment.

However, another good way is to write down what you would consider important or pertinent information about your company’s growth potential, its financial future, how you intend to gain capital and then ask yourself would you invest in this startup with what you have on paper. Is what you wrote for your executive summary clear and straight forward? Can the reader really see the growth potential in your company and your product? If you answered yes with an unbiased voice then you are well on your way to completing your executive summary.

However, there is one other thing to remember when evaluating your executive summary, one give it to a friend or family member who could be a potential investor to let them read through it. Also understanding the difference from knowing what could be improved versus it is just a bad executive summary, after all we are human and we are our own worst critics; it will be an invaluable test run to have someone that you are not considering investing in your business to read your executive summary. I find that one of the most important aspects about the executive summary is that you should think of it as a persuasive outline that is with as many hook statements as you can get in the summary to keep the reader focused on your goal. 

The last tidbit about the executive summary you should remember is your mission statement; never forget that every business has its own agenda. The mission statement should be summed up in one to two sentences and clear about what it is that you anticipate or want to achieve from your business operations. This would be a good time to also not in detail but explain your company’s social commitments or responsibilities. I have taken the time to write out a little bit of an executive summary to give you somewhat of an idea of what it should look like. I also want to point out that I am still a believer that the executive summary should be written last but it can however, be used as the beginning road map for the rest of your business plan.

EXAMPLE

Introduction-always start with a proper introduction, this gives everyone a brief overview of who you are.

Green Run Industrial Equipment Rental will offer large equipment rentals to construction professionals in urban areas that are currently under development. Our strategy is place our service and sales professionals in strategic locations near the development sites, making our service more cost effective, reliable, and accessible to local developers.

Once Green Run Industrial Equipment Rental successfully launches our startup, we will be able to broaden our scope to more developers within the local area aiming for a higher marginal impact. Green Run Industrial Equipment Rental will in turn be able to turn over used equipment for newer equipment giving us more of a competitive edge among customers. This methodology also gives us the advantage of being able to leverage the cost of labor expense on used or outdated equipment.

The Management Experience of the company-the experience you have running a business is not nearly as important as it is to experience in management, the field of business you are starting.

Green Run Industrial Equipment Rental is located at 411 Construction Avenue; this location is in the heart of the industry area of urban area, USA. The location is highly visible among other construction companies and we are the only large equipment rental located in the industry zone. Gary GotJob has over 25 years’ experience in construction management and is skilled in large equipment repair and operation. Elmer GotJob has followed in father’s footsteps with solidifying over a decade of construction management, large equipment operation, but has spent the last five years in a sales position for his current construction company.

This is just a brief of how to get started on your executive summary. However, I did not cover all the details of the executive summary simply because I usually charge a fee for even a sample draft of what an executive summary or an outline of a business plan should look like. But you need not worry if this information is a must to you, I will be posting more on the drafting of a business plan and I will go into further detail about the executive summary in the up and coming days. I hope this helps you gain a better understanding of what your business plan’s executive summary should look like and if you have questions feel free to ask.