The Business plan is unmistakably the most important document for any business. Capturing the essence of the business idea, formulated strategies and milestones that have to be achieved, a business plan can be thought of as a roadmap aimed at ensuring that one stays right on track. A crucial part of this business plan is the executive summary and the following account helps one grasp the way a convincing executive summary can serve as an elixir for attracting potential investors.
An impressive business plan is synonymous to success and it is this document that will enable the third parties to perceive your ideas in the anticipated manner and to fully comprehend them. This, eventually, allows investors and capitalists to decide whether or not it will be profitable to invest with you. Since it is the only way you can compel the concerned people to realize the prospects your plan has to offer, the business plan has to be immensely attractive.
Investors only want to see condensed information and this is where executive summary comes into the picture. As they say, first impressions are the last, if your executive summary fails to grab attention of the investors, you lose them then and there. By putting up a concise and attractive executive summary, not only will you help investors get a clear picture of your business but also improve your chances at success.
Regardless of what anyone says, the truth is no matter how many sleepless nights you have spent constituting an exciting business plan, prospective investors do not have the time to dig into the details and in such scenarios, the executive summary is their first resort. Not only is this executive summary an effective communication tool, it help top decision-makers assess the potential that a plan promises. Even if the investors dig deep into your business plan, they will read your executive summary first and if you cannot impress them and grab their attention at this beginning stage, they will likely lose interest and may not read further.
What makes an executive summary a crucial part of the business plan is that it is an entrepreneur’s initial face to a potential capitalist and this makes it imperative to create the right first impression. Here it is important to specify that the basic idea behind the executive summary is to sell, not to describe and this is what the executive summary is actually intended to accomplish.
The first few paragraphs of the executive summary can be the difference of success and failure, vastly influencing whether or not a capitalist is interested to read on. It is, therefore, of immense importance to ascertain that the executive summary is not only convincing but interesting as well.
While the rest of the business plan can be a lengthy document with reams and reams of details, the executive summary should be brief, communicating the ideas in the desired manner so as to encourage third parties into making investments.
An effective executive summary is one that is crisp and compelling and in essence helps one to translate their ideas the way they want. No matter what strategy you use for the development of the executive summary, it should be carved around relevant information only, stated attractively.
For instance, an all-embracing executive summary will include description of the business and company, a review of the proposed marketing strategy, specifics of the management team and the plan-of-action for handling the aggressive market competition. It also includes a summary aimed at enlightening investors with the key financials. Last but not the least, it should convey the unique aspects of a company.
It is integral to bear in mind that since an executive summary is not a literary piece, it should not contain too much conceptual information. Executive summary is, more or less, like a sales pitch for your business plan. It is because of this reason that unless and until the investors understand the competitive edge you will bring to the market, you won’t be able to get the desired response. Also, the executive summary must address the issues that your business plan intends to solve or opportunities it plans to exploit.
One point to remember is that in the process of drawing an exciting executive summary and incorporating the necessary details, you should not forget that it has to be concise. In fact, the most effective executive summaries are known to be the ones that have been short but packed with a punch. Keep it simple and remember that you are supposed to sell your idea to the investors and convince them that what you can do is certainly unique. Having done your job perfectly, all you have to do is to wait and see success coming your way.