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To create a favorable impression to land investors or to apply for a business loan, you must include a strong executive summary in your business plan.
Even if you have other reasons for a business plan, you still need a great executive summary.
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Of course, a memorable executive summary is a brief description of the salient points you need to make in order to pique the interests of your readers. Your passion or enthusiam matter.
Unsuccessful business plans often have executive summaries that either contain unrealistic goals or projections, or verbose language.
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Applicants often fail to effectively summarize the quintessence of the business plan — usually because they write the executive summary before writing the entire plan.
True, the executive summary is listed first in a business plan. But it should be the last component you write to avoid omitting important information.
Typically, a business plan has these elements:
- Executive summary
- Company description
- Market analysis
- Organization and management
- Service and product line
- Marketing and sales
- Funding request
- Financial projections
If you’re a startup, you’ll need highlight your value proposition, partnership members, customer relations and revenue streams.
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To sustain reader interest, your executive summary should succinctly state the essentials in just a handful of paragraphs in no longer than three to five pages or no more than 10 percent of the business plan itself. That means one paragraph for each section.
Hold the readers’ interest
Treat the executive summary as a vital business story. Yes, include concise important facts but avoid boring the readers with mundane writing.
You might want to consider hiring a skilled writer to make your points.
- Prioritize. Again, write the executive summary last.
- Keep it relevant. Include specific exciting details about your business sans unnecessary points.
- Enthusiasm is contagious. Don’t hesitate to explain your strong belief or passion for achieving success.
- Avoid mistakes. Be absolutely certain you avoid errors in grammar, spelling and typos.
From the Coach’s Corner, here are relevant tips:
Best Financial Strategies for Your Business Plan — When updating your business plan as an established company or writing it as a startup, be sure to intensely focus on the financial section.
Dos and Don’ts for Writing a Top Business Plan — There are many valid reasons to write a business plan. They’re not necessarily to attract capital. Whatever your reasons, avoid writing a mediocre document. To ensure success, there are key essentials.
What No One Tells You about Raising Investment Capital — Investment capital is available during all economic cycles, according to leading consultant Joey Tamer. Ms. Tamer has proven approaches for raising money. Here’s how.
To Get the Lowest-Cost Small Business Loan, Here Are 6 Tips — The government’s rollback of some Dodd-Frank’s banking rules are a good sign for both small banks and small-business owners. So, if you’re a small business looking for funds, get well-acquainted with your town’s community bank, or credit union if it’s skilled in small business matters.
“The best business plans are straightforward documents that spell out the who, what, where, why, and how much.”
Author Terry Corbell has written innumerable online business-enhancement articles, and is a business-performance consultant and profit professional. Click here to see his management services. For a complimentary chat about your business situation or to schedule him as a speaker, consultant or author, please contact Terry.