If you are writing your business plan, then you need to understand this. 90% of what you are writing will not be read. I am not saying you are wasting your time writing a detailed business plan. I am saying you are not focussing enough of your time on the section of your business plan that most investors and institutions base their investment decisions on.
Most investors do not have time to read all of your business plans; they work associations who hire professionals who screen business plans and filter out the weaker plans that do not meet their investment criteria. Due to the high volume of business plans submitted, only the Executive Summary is read. To get all of your business plan read, you have to write a compelling Executive Summary that really sells your business and makes them think there is a genuine opportunity.
Too many entrepreneurs write lazy executive summaries that act as an introduction to their plan, not providing any value on its own. This is a serious mistake. The main purpose of the Executive Summary should be to get the reader interested enough to read the full plan. To achieve this, you need to offer more than an introduction.
The Executive Summary is your opportunity to sell your business or business idea. You need to prove that your business is unique, viable, profitable, and you have the expertise and people to make it happen.
Questions Your Executive Summary Should Answer
- Is there a market for your business?
- Does the business have the products or services to capture this market?
- Does the business have the expertise and/or the people to make it happen?
- How much money will the business make?
- What is the future of the business?
- What’s in it for the investor?
- What is your exit strategy?
The Executive Summary should be no more than two pages long and should focus solely on answering the questions above.
Remember the Executive Summary is a selling tool, use positive language and incorporate market research and numbers from reputable sources to substantiate your points.
It should be the last thing you write on your business plan. Its where you evaluate all components of your business, its strategy, the market, competition and the investment proposition.
Let Us Help You WIth Your Business Plan
Whether you need a business plan for investment, funding or internal management, we have several business planning services available. Check them out below.
We also offer an Executive Summary service option where we will write your Business Plan Summary for you.