Your business plan executive summary will be the hook for getting investors to invest in your project.The secret at this initial phase is to keep investors reading, since investors are given business plans constantly and can’t study every one of them.
CLICK HERE to learn more about how to write your Executive Summary <== Every business plan executive summary consists of 1-4 pages. A number of business specialists believe an executive summary ought to include just one page, while others point out it can be a slightly longer than that. The first page of the executive summary must include almost everything an investor would need to know in order to figure out if your business will be of any benefit to them. Additional pages within the summary are designed to further persuade the potential investor to read the remainder of the plan. It can help to consider the executive summary as an upside down pyramid, but in the form of printed material. The most crucial details are positioned at the start. The storyline is then broadened, and the details recapitulated, getting deeper and deeper into the specifics as the entire picture sharpens. Page 1 of your business plan executive summary should always include:
– Description of your business.
– Description of the market size as well as the market demand for business.
– The main reasons why the business is actually distinctively competent to satisfy the needs of the market.
After reading page 1, investors will often finish reading through the executive summary, or perhaps jump directly into other sections.
Other pages of the executive summary will need to include:
– Customer Analysis: What particular consumer sectors the business will be focusing on as well as their demographic profiles.
– Competition: Exactly who the business’s immediate rivals are and also the business’s main competitive advantages.
– Marketing Plan: The way the business will successfully enter its target audience.
– Financial Plan: Outlining the monetary projections of the business.
– Management Team: Biographies of essential management team and also Board members.
Because concision is vital in the first page of the executive summary, it is almost always necessary to dumb down the wording. For instance, a good “online book seller” could also be presented “a business active in the procurement and distribution of written materials spanning a broad geographic range.”
The previous description (Online Book Seller) must be used in this instance, because not only does it allow for a lot more room on the first page, but it’s a simpler phrase to remember whenever investors speak amongst themselves regarding your business.
When demonstrating market size and the need for your business, always be specific and avoid the temptation to exaggerate. For example, the health-related market might total a trillion dollars, but your business’s specialized niche must always be a much smaller figure.
Exaggerating about your business’s potential is certain to get your business plan tossed into the feared “circular file,” also known as the wastepaper basket.
When outlining the reason why your business is so “uniquely qualified” to fulfill the needs of its niche, you need to illustrate an “unfair competitive advantage” within the market, such as a world-class management team, exclusive technology, tried and tested functional systems, important partnerships, long-term contracts with key customers, along with other achievements.
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