Your executive summary is the entryway into your business plan. If you don’t create a strong executive summary, you run the risk of having your business plan pushed aside by potential investors and losing the funding your business needs. To ensure that your business plan gets the attention it deserves, you need to make sure it is polished to the point that it gleams. As you put your pen to paper, or fingers to keys, you should be aware of some common mistakes that can land your business plan in the garbage.
It Has No Focus
The worst thing you can do is having an executive summary that has no focus. Businesses with unclear executive summaries run the risk of losing potential funding, according to Venture Den. If your executive summary isn’t focused, many potential investors may see it as a preface to the rest of your business plan. Your executive summary is meant to demonstrate that you have something special to offer your customers. Before you start to write it, make sure you know exactly what you want your business plan to convey. It may help to write your executive summary last, giving you time to gather and access the information you need to include to give it the focus it deserves.
It’s Too Lengthy
Too many businesses make the mistake of including too much detail in an executive summary. The purpose of the executive summary is to highlight the information that is contained in the rest of your business plan. An executive summary is meant to be just that, a summary. Keep it short and concise, and get rid of any filler language. Patrick Hull, contributing writer for Forbes magazine, informs his readers that there is no investor who wants to read a long executive summary. It is best to keep it short and get to the point.
Not Discussing the Management Team
Potential investors want to not only know about your plans for your business, but what your management team is going to look like. A big mistake that many beginning owners make when writing their executive summaries is that they don’t include enough information about their management team. You company may have a great product or service, but without a strong management team, you may not have the chance of success. For potential investors, this is something that is important. They need to know that you have a strong management team in place before providing you funding.
Unrealistic Financial Projections
While you may dream of having an extremely successful business, you have to be realistic when it comes to putting your projections in your executive summary. Potential investors want to see realistic numbers when it comes to what your business’ valuations and financial projections are. If you inflate your numbers you will run the risk of losing credibility with your investors. You can also run the risk of losing credibility if you set your expected cash needs too low. When looking at the projections you will include in your executive summary for business, you need to make sure that you are realistic.
Your executive summary is the most important part of your business plan. It is what gets potential investors interested in your business and is what gets them to keep reading through your business plan. It is important to make sure your business plan is well written and concise. Avoiding some of these mistakes can give you a better chance of receiving the funding you need to get your business started or find the funding you need to help your business grow. Make your executive summary stand out and get the notice it deserves.