Executive Summary Page 2

The executive summary should contain a paragraph of 3-8 sentences from each of the sections of the full business plan, in the same order. Since not every plan has the same sections, you can modify this as fits your needs, but basically, this is the general format.

First Paragraph- this opens the executive summary, and just as the summary is the most important part of the plan, the first paragraph is the most important part of the summary. You can't underestimate the laziness of most readers- if they don't get the first paragraph, they will simply stop reading.

You should use the first paragraph to tell them in three sentences or less the name of the business, what it does, where it is located, who it's customers are, who the management/owners are and what is the purpose of the business plan.

Rewrite the first paragraph several times until you really get it sounding right, and it shoud be clear enough so that if the only thing you told someone on the phone was that first paragraph, they would still have a really good idea of what you are up to with your plan and your business.

Second Paragraph- About the business. Here is where you state the facts- what business form, physical address, years in business or if it's not a start up, type of building, number of staff, annual sales, annual profit, any relevant licenses (for contractors, as an example) and any other business defining statistics.

Third Paragraph- Industry Overview. This where you tell them generally a few facts about the industry, particularly if you have numbers that relate directly to your business area or niche. For example- the homebuilding industry is expected to grow 20% over the next 5 years, and it is expected to grow over 10% in the next two years here in Clarkson County, where our business is located.

Fourth Paragraph- Our Product/Service. Here is where you tell them exactly what you are selling. Outline your main products or categories or main service offerings.

Fifth Paragraph- Operations. Here you detail some of the highlights of how you go about making your business happen. This is more important if you have a business which the bank or investors might not be familiar with, less so if you have a fairly standard business. Even then, however ,it is not good to assume they know too much, so give them at least some general information on the specific operations of your business.

Sixth Paragraph- Competition. Who are you competing with for sales dollars. List the main competitors, and the general number of competitiors in your service area or niche market. Never say you have no competition- not only is it not true, people assume you don't have much business knowledge and aren't too smart when you make this statement.

Seventh Paragraph- Sales/Marketing. Explain how you are going to get the word out to your customers about what you are doing.

Eighth Paragraph- Management Team. Tell who owns this business, and what their general experience is. Give at least one sentence for each majority interest holder, and for anyone who is going to be key to the success of the business.

Ninth Paragraph- Financials. Here you state how much money the business is projected to gross and net, how fast it will grow, and how much money it needs from the bank or investors or both to launch of for the acquisition.

You can start the plan by writing the executive summary, however, once the plan is finished, you should go back over the summary to make sure everything you wrote still matches what is in the plan, and that you didn't leave anything important out.

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