Components of an Executive Summary
Your executive summary is one of the most important aspects of your business plan. It's the first thing potential investors read, and if it's well written and grabs their attention they will read on- if not, your business plan will get set aside.
To write a solid executive summary it needs to be direct and articulate. Its purpose is to consolidate all the pages of your business plan into a one page summary; use your words sparingly and make sure they have as much impact as possible. Because it encompasses your entire business plan, it should be the last thing you write and you will want to spend a few days on it. Write it, give it a few days and review it to make corrections, then refine again. If you know someone that writes or reads well, or often, you may even want to get their opinion.
The following are a few components that should be in your business plan executive summary:
- Business Description
- Capital Requirements
- Who are you (business name, entity, primary personnel)
- What product/service is your business going to offer
- What is your industry and target market/niche
- Where are you located (headquarters and demographic area you will focus on)
Within the first few lines the person reading your executive summary should know exactly what business you are pursuing.
One of the primary reasons for writing a business plan is to solicit capital for your start up; don't be bashful! If you need $80,000 for equipment and $9,000 for marketing, state it toward the end of your summary. Although, you don't need to go line by line explaining what the money is for; this is what your financial section is for.
Additionally, you will want to briefly describe the following information (the who, what and where):
Executive Summary Example Business Plan
With the recent social emphasis on environmentalism and the movement toward alternative energy, SI Co is committed to providing quality and excellence in the solar installation industry. With rising utility costs and financial incentives, offered by both state and federal governments, we will meet the demand for alternative energy- namely solar panel installation.
SI Co is a family owned and operated Limited Liability Company offering over 40 years of combined electrical experience. In conjunction with the governmental promotion of alternative energies and the social emphasis demanding green environmentalism, we will establish ourselves as the southern Illinois solar installation experts... Continue reading this Executive Summary Example.
Or visit Business Plan Examples for additional examples and information on other parts of a business plan.