Design and Business Strategy

Importance of Executive Summary

In a number of business-plan competitions around the world, the finalists are short-listed on the basis of their executive summary. A full business plan is required to be submitted only by the short-listed finalists.

There are two broad approaches to make an executive summary. There are some entrepreneurs who first make an executive summary and then use that as a base for making the rest of the detailed business plan. Then there are the others who first make the rest of the business plan and then summarize the important points to make an executive summary.

A combination of both approaches can also be taken. Making a short statement explaining the salient features of our intended business and using that as a template for making the entire business plan, and then modifying the original business plan on the basis of the information incorporated in the business plan.

An executive summary begins with a description of the business. A generic executive summary is about assuming that the reader is not familiar with the industry in the business is operating. While sending it out to someone familiar with the industry, the appropriate changes should be made.

Next, the executive summary includes the key strengths of the business. It should be able to convey to the reader, why you feel that the business will be successful. The reasons could range from a competent management team, location advantages, proprietary intellectual property, and many other such factors.

It states some obvious risks and then outlining the steps we are taking to mitigate the risks.

Often, we wonder if it is good to include numbers in the executive summary. If we think of an executive summary as a concise business plan, then, obviously, we will need numbers in most cases. If there are some dramatic cost advantages, then that should be presented in detail. If the projections are very attractive, it should be presented and explained in detail too.

After completing the business plan, it must be checked to see if it seems convincing and is able to capture the attention of the reader. If it fails on either front, it needs to be rewritten.

Reflection:

What I understand about the executive is, it is the summarised form of the overall business plan or the outline of the business plan depending on when it is formed, either after making the business plan or before it. It could be a reference for the business plan or other bodies that would be investors, partnership or bankers that might we seek for financial later on. But in that case, business plan is important too.

Reference

Chand, S. (2016) Yourarticlelibrary: notes on the importance of executive summary in a business plan. [Online] Available on: http://www.yourarticlelibrary.com/planning/notes-on-the-importance-of-executive-summary-in-a-business-plan/13661/  [Accessed on 10 March 2016]

(2016). Bizplanit: executive summary. [Online] Available on: http://www.bizplanit.com/executive-summary-business-plan-basics/ [Accessed on 10 March 2016]

(2013). Bizplanplus: perfecting your business plan’s executive summary. [Online] Available on: http://www.bizplanplus.com/1372/perfecting-business-plans-executive-summary-possibly-the-most-important-business-plan-writing/.  [Accessed on 9 March 2016]

 Berry, T. (2016) Bplans: what is a swot analysis? [Online] Available on: http://articles.bplans.com/how-to-perform-swot-analysis/ [Accessed on 10 March 2016]