The most critical part of writing a successful business plan is the Executive Summary. It is also the most difficult and often intimidating section of the plan. Too often business owners allow themselves to get stuck at this section as it comes at the beginning of the plan. I recommend skipping the executive summary until you have written most of the remainder of the plan as the concise summary will flow directly out of the rest of plan.

The Executive Summary is basically a summary overview of the plan. It includes highlights and key information about the business. I use it as a launching point to get investors excited and interested in reading the plan as a whole.

There are two methods for creating an Executive Summary. The first is the traditional method of using it as an introduction to the full business plan. The second is gaining popularity and is done by creating a shorter stand-alone document in place of the traditional business plan.

The Executive Summary as an Introduction to the Business Plan

When the Executive Summary precedes the business plan, its length should be short. Typically 2-3 pages long and very concise. In this scenario, the Executive Summary is not meant to tell the whole story, but merely introduce the key points of the business plan. Use the introductory Executive Summary to motivate the investor to learn more about the company in the main body of the plan.

The Executive Summary as a Stand Alone Document

When the Executive Summary is developed as a stand-alone document, it by itself is given to investors for their initial review. If interested, the investor can then request the entire business plan for review. The best reason to utilize this type of document is to limit the amount of information released to outside parties. It easily eliminates those investors not interested and keeps a tight reign on proprietary company information.

Both styles of Executive Summaries will need to include a concise explanation of the business, a description of the market size and an overview of the market need for the business, summary information on the financial and marketing plans, and any other key information to get an investor excited about the concept of the business.

The Executive Summary is the most critical element of the business plan. If it does not immediately grab the reader's attention, the investor will not desire to read further or request more information. Take extra time to develop the best possible summary.

Article written by Terri Sullivan owner of TLS Business Consulting.
http://www.tlsbusinessconsulting.com
Article not to be used without the authors permission