How to Business Plan Pt 2 of 10 - The Executive Summary

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The executive summary

The executive summary is often the most important part of your business plan.
Positioned at the front of the document, it is the first part to be read. However, as
a summary it makes sense to write it last.

It may be the only part that will be read. Faced with a large pile of funding
requests, venture capitalists and banks have been known to separate business
plans into "worth considering" and "discard" piles based on this section alone.

What is it?

The executive summary is a synopsis of the key points of your entire plan. It
should include highlights from each section of the rest of the document - from the
key features of the business opportunity through to the elements of the financial
forecasts.

Its purpose is to explain the basics of your business in a way that both informs
and interests the reader. If, after reading the executive summary, an investor or
manager understands what the business is about and is keen to know more, it
has done its job.

It should be concise - no longer than two pages at most - and interesting. It's
advisable to write this section of your plan after you've completed the rest.

What is it not?

• A brief description of the business and its products. It's a synopsis of the
entire plan.

• An extended table of contents. This makes for very dull reading. You
should ensure it shows the highlights of the plan, rather than restating the
details the plan contains.

• Hype. While the executive summary should excite the reader enough to
read the entire plan, an experienced investor or businessperson will
recognise hype and this will undermine the plan's credibility.

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