What Is Executive Summary In Business Plan
The free program: the executive summary in the business plan
The executive summary, a short and concise summary of the business plan, should be at the beginning of your business plan.
Investors in particular, such as banks or investors, often only read the executive summary and then decide whether they want to go deeper into the business plan.
The executive summary should only be written after the business plan has been completed.
Especially if you want to convince investors with the executive summary, you should consult an experienced advisor. Consulting services are generally funded and are therefore worthwhile in two ways.
The summary follows at the end
In the executive summary, you present the most important points of your business plan on a maximum of two pages.
The executive summary is thus the summary of your business plan and should arouse interest.
The Executive Summary is particularly important for potential investors and banks, as it enables a good overview of your business model in a short amount of time.
What is an executive summary?
The executive summary is often referred to as the management summary because it contains the most important points of a business plan from a management perspective.
Accordingly, it is not an introduction to the business plan, but rather a summary of your business plan.
For this reason, we recommend that you only write the executive summary after the business plan has been completed.
Executive Summary: Your company’s business card
The executive summary gives the first crucial impression to your contact person.
If the executive summary is convincing, the reader usually decides to read through the business plan. Accordingly, the executive summary is very important.
What does an executive summary include?
On the one to a maximum of two pages, you have to focus on the essential points in the executive summary.
The areas of interest to any investor are the following:
Product or service
Briefly introduce your product/offer and explain who your customers are and where the customer benefits lie.
Record why the market is attractive and what important features the industry has.
Goals & Strategy
Show which goals you want to achieve in the short to medium term and which marketing tools you will use.
The financial plan is of particular interest to investors. Show the financial development of the next 3 years and mention the most important key figures.
Don’t forget to state how much capital you need to start your own business.
The founding team is one of the key factors in the executive summary.
The convincing business plan can only be implemented with a strong team of founders. In this respect, you should particularly emphasize the specialist, commercial and operational skills and experience of your founding team.
Who are you writing the executive summary for?
The Executive Summary gives you the opportunity to review and highlight the most important points of your business plan – in this respect, you can write the Executive Summary for yourself as well.
However, it is much more important for potential investors: The Executive Summary is usually the first document that is demanded and read by potential investors ( venture capital companies , business angels , banks etc.). If the project is assessed as promising according to the executive summary, the business plan is examined critically and then the first meeting normally takes place.
You conclude the business plan with the executive summary. Use the sponsored start-up coaching – an experienced start-up coach will check your business plan and support you in the start-up!
What you should pay attention to when summarizing
As the requirements for a highly compressed summary of the business plan are high, you should note the following points:
- Page length: 2 pages maximum
For example, since venture capital companies receive requests for financing every day, you should make sure that you keep your summary of the business plan short. On no more than two pages should you try to arouse the interest of the potential investor?
- No technical Chinese
Write your summary in such a way that even someone unrelated to the subject understands it. Your contacts on the investor side are usually not specialists, so special terms are not helpful. Also make sure that you avoid lengthy and imprecise formulations.
- Realistic assessment
Remain realistic when formulating your summary. Phrases like “infinite potential” and “massive profit increase” look unprofessional. End the executive summary with a positive outlook.
- Position in the business plan
Although the executive summary is written after the business plan has been drawn up, the summary still comes first in the finished business plan.
The goal is …
… that you formulate a short, concise executive summary that convinces investors and makes you want to read the business plan.
With the executive summary, you have completed the business plan. Now it’s about creating a convincing company presentation that you can present to investors and other interested parties.