We all know that
business planning is the major
requirement to run a business. Every entrepreneur knows that a business plan for small business is
necessary. However, not everyone knows how to properly create and place an
executive summary of their small businessplan. Now, in this article you will know the elements needed to create your
business plan’s executive summary.
When creating a
summary for your business plan you
need to make sure that it is no longer than one page. No one wants to read a
summary that is five or more pages long for sure. The shorter your summary is
the better. However, you also need to make sure that you can provide all the
important details in your summary. To help you get started here are the key
elements that you should include in your summary.
Business Concept
The very first
element that you should provide in your summary is the business concept. This
is where you describe your business, product or service, as well as your target
market. It should be able to explain your product, to whom will you will sell
it, and its sustainability.
Financial Statements and Requirements
This is probably
the longest part of your summary. You should be able to provide all the
important financial statement of your business. This includes the cash flows,
return of investment, sales, and profits. On the other hand, the financialrequirements should also be provided clearly. You need to clearly state how
much capital is needed to start the business and for future expansion. In
addition, you should be able to provide a detailed statement to where and how
will you use the capital.
Business Position
This element
should also be provided in your summary. This is where you provide all the
relevant information about your business. This is also where your legal form of
operation is stated as well as the owner and personnel.
Achievements
Of course, in
order to impress investors you need to provide the details of your major
achievements. It should contain any developments within your business that are
essential for business success. This may include good results from your
marketing efforts, franchises, contracts, etc.
These are the
elements needed to create an executive summary of your business plan. As stated
above, don’t make a summary that is five or more pages long because nobody
would want to read that kind of summary. In addition, a summary that long only
shows that you don’t really know what you want to state or your purpose. Make
sure that your summary is easy to read and clearly shows your purpose. An
investor that can easily realize or understand your needs and capabilities by
just reading your business plan’s summary is more likely to invest.
Socratic SBC / Small Business Consulting
2 Wisconsin Circle Suite 700 Chevy Chase,
MD 20815
Office: (410) 344-7874
Fax: (202) 318-0689
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