The message here – make the executive summary spot on.
The exec summary is a two-to-five page synopsis of the fundamental factors in your strategic business plan.
Generally speaking an investor will evaluate the executive summary and gauge whether the opportunity and this investment really adds up, whether management look like they know what they are doing, and has been completely thought through. Is this business genuinely going to take advantage of the suggested opportunity? They will also want to conclude that the timing in the venture is appropriate – not too late & not too early. Cosmetically, the plan on the whole should be clear, concise where it needs to be and broken down where applicable.
Remember the company thought does not have to become a paradigm shift, easy can be best and so where it is not don’t make it any more complex than it has to be.
To arrive at the above conclusions, a excellent executive summary would include the following – and this is as significantly a guide for what a great proposition appears like as what ought to be included within the executive summary:
The issue should be stated clearly, how big the issue is and that this issue is fitting for a company solution – following all not all difficulties in the planet should attract a company solution.The actual market should be growing and be big sufficient for an expense opportunity to create sense. Investing in the shrinking market isn’t an attractive proposition. Additionally, the investment will make much more feeling when the industry discuss targeted is not a material share of the overall industry eg less than 5%, and still results in an attractive return for the investor.
Your answer to the problem must be robust and guarded against the opposition, through a competitive edge, or copyrighted protection all of which imply the service or product will be distinctive, which is critical. Further we must have a extensive overview of the competitors and what they have actually done and are very likely to achieve.
To be given uniqueness, the executive summary must state what the value proposition is to the final client, and determine that end client, and qualify the demographic targeted.
All of the project team must be introduced quickly (and in much more detail within the investment business plan, show why their history is appropriate for that business, and if they have not come from the business, demonstrate their desire to seek proper guidance. Your summation must demonstrate good financials, with a return five to ten times within a 5 year time period and note that recurring revenue decreases risk.The entire valuation must be reasonable – thought must be paid to industry benchmarks – do this carefully as this what an investor will do. If there is one flag against management and entrepreneurs that regularly causes frustration it’s drastic valuations by entrepreneurs. It does nothing for management standing. A good exit should be stated, preferably with a range of targeted strategic partners quoted. So if you are seeking to be acquired…who are you ideal targets.
If all these items were included within the business plan executive summary, presented clearly and concisely and made logical sense, an entrepreneur ought to expect strong results, subject of course to the right numbers falling out and matching the investors expectations.
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