Currently knowing how to carry out a good executive summary for your business plan is essential. This executive summary can help us, in addition to other things, to be able to present the project to future potential investors., to make our product known to mentors from all over the world and present it in public institutions in search of state subsidies and aid in general.
Although I'm sure a large part still does not understand what exactly is an executive summary and its main reasons for being. Then, We will try to detail all these unanswered questions.
What exactly is an executive summary and what is it for?
an executive summary It is a document that is delivered as an appendix to a business plan and that Its main objective is to summarize our business plan in two pages maximum.
The truth is that This is the main document that we will deliver to our potential investors so that they can assess whether they wish to invest in our business., because we should never deliver the business plan directly for two reasons:
- In the first place, because that potential investor It is not yet clear if you are interested in our business model, so they won't be proactive about reading a business plan that can be over 100 pages long.
- In second place, because we do not know that possible investor and we should not hand over our business plan to just anyone.
Real example of an executive summary
Next, we will detail a real example of an executive summary:
company data
Always at the beginning, in the header, it must appear the name of the company and its contact details.
The presentation of objectives
The presentation of objectives must have at most five lines so that its reading contributes to quickly understanding what the project is about, the sector in which it wants to operate, the specific target it is aimed at and its main competitive advantages in the market.
The main thing in this section is highlight as much as possible the idea that makes your product different from the rest and the most basic goal you want to pursue.
The description
This is a similar section to the previous one, however, here we must offer the information of our project in a much more detailed and organized way in different points, how, for example: what is the business based on, the different targets you want to target, your main strengths, what use of technology will you need, etc.
The market
In this section we will only offer, in a very summarized way, all the data we know about the current state of the market we want to target and its trend for the future.
The strategy
Yes now, it is time to explain how our project can enter the market detailing in detail all the phases of action and implementation in the different possible marketing channels and all the marketing actions that you want to undertake.
The team
It is a very important part of this document that is not always included.
The team often turns out to be an extremely important part of an executive summary that is not always included. In this section we must present all the members of the team that will lead the project. To do it properly we must highlight their training, their experience and their real knowledge of the market we want to enter.
The investment
Investment is a section that we must include in our executive summary in the event that our project is seeking funding.
In this section, the truth is that it is not absolutely essential to specify all the destination of the investment by budget items, but rather that in some way it must be made absolutely clear that the main investment is for priority needs for the business and not to the contribution of the wages of the workers of the whole team.
Essential tips to carry out a correct executive summary
Next, we want to finish by providing a series of essential tips in order to develop a correct executive summary:
The shorter and more direct you are the better
When writing your executive summary, it is quite important that you know how to understand the people who are going to read it. Remember that the shorter and more direct your writing, the faster they will be able to know your idea of value.
Never exceed four pages
Never exceed more than four pages when writing your executive summary. In addition, try that each of the sections of the summary does not exceed 5 paragraphs in length.
Try to answer the main doubts of your investors
Always try to present your executive summary as a kind of report in which you give answers to all the main questions that your potential investors may have. The most frequently asked questions are the following:
- What is it about exactly the project?
- What will be your sources of income?
- Which is the investment what will you need?
- In how much time he will get over the investment?
- Who are the people who will take care of develop the project on the Internet?
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