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Executive Summary of a Business Plan

Executive Summary of a Business Plan


hello welcome to the session on business
planning this module will focus on designing your executive summary. The
executive summary is as the name summary is that summarizes your whole entire
business plan in one page. It gives funders stakeholders and who else is
interested in your business a quick overview about your product your service
whether you have a niche market how much you’re going to invest or from the
donors perspective and what is the preferable ‘ti and sustainability of
your business plan the executive summary is a summary of all the different parts
of your business plan but it’s actually in the beginning of your business plan
it’s one page and it has to be a quick summary so we’re going to go over a
different contents that goes into the executive summary so you need to make it
compelling attractive really emphasizing on the gap in need why you you and your
business are the right people at the right time at the right place to address
this issue so let’s dive into what goes into the executive summary exactly this
summary is one page don’t make it a page and a half or two pages because what
happens is that most funders they’ll get stacks of business plans asking for
money they’re usually 10 to 60 pages and
they’re just gonna glance the first page they’re not gonna glance and flipped
over so you really want to make sure that you emphasize all the key points in
this one page think of it as your one to two minute longer elevator pitch speech
where you know I had you guys do a 30 second elevator pitch with this imagine
that if you’re waiting in line and this could be a potential funder who’s
standing in line next to you what would you say in that 1 to 2
minutes as you’re waiting at the post office
you must highlight your product and service for your specific niche you want
to summarize the different sections of your business plan which we’ve gone over
in the past couple weeks in the last couple weeks we went over the following
different lands within your business plan we went
over the industry plan a market plan building your partnering competition
plan your marketing plan your valuation plan your exit and implementation plan
your financial plan in each of these plans I had a couple of questions to
help guide you in thinking about what goes into this particular part of your
plan many of you just wrote a couple sentences underneath each questions but
but to put it into practicality of a business plan it has been written into a
paragraph form so if you want to go back to your previous assignments where
you’ve had responded to the questions and a couple sentences and I encourage
you to write those responses and at a paragraph form this would be a good time
to revisit those comments I’ve made in your specific assignment for this
pathetic plan now many of you already went ahead and wrote up your different
parts of these plans in a paragraph which is perfect because all you need to
do now is take those paragraphs which you’ve already done and maybe consider
some of the suggestions I made in and giving you feedback in your assignments
and revise those paragraphs and then cut and paste into this portion of the
business plan now what you want to do as you’re writing your executive summary is
to read through all the different parts of your plan so go back and read your
industry plan your market plan your your partnership competition plan your
marketing strategy plan your operational plan your financial plan your valuation
plan and your implementation or exit plan right through those and what you
want to do is highlight two or three sentences from each of those plan and
put it into the executive summary so the best way I suggest up students to do is
just print out all your plans that you went over in each of the different weeks
and just highlight use a highlighter to highlight key words and then start
picking out what are some key factors in each of these different components
overall the executive summary should really address these main issues
you want to emphasize the pain point you’re trying to relieve in your market
space right that’s why you’re providing this product and service what makes you
or your business the right entity to help relieve this particular pain point
you’re gonna have other kumkum competitors right and this is was part
of your competition work and partnership plan you might have different partners
so you want to emphasize what makes you unique in this space so you don’t want
to emphasize that you’re the only person offering this there may be other
partners that are offering this service so you want to emphasize that you know
what makes you unique dissent emphasizes on the value propositions and that even
though you have these competitors there’s opportunity you can partner with
them and you want to emphasize why now why should they invest in you now why
should they give you the dollar today could they invest in you tomorrow next
year so you want to emphasize no this is a huge need there’s a huge issue and I
am the right person because I have to right skill sets I’m I have the right
connection I’ve already built these partners so these are ways that you can
emphasize why they should invest in you today and why here you know what makes
you what makes the location that you’re trying to offer your business I’m so
special so you want to emphasize why here and also why should they fund your
and support your idea you really want to give them an emotion connection how you
know this idea that you’re trying to address can impact their lives even
though it may seem like there are seven degree separations but the more you can
have an emotional connection in the executive summary the stronger your
argument will be then a proposal that was just all based on facts I mean I
think facts and statistics are important I noticed that in many of your business
plan in different sections but you want to emphasize the emotional connection
what’s the quality of life how and if this was somewhat in their family like
how would they like to be treated so these are key words that you can
emphasize I’m adding more of a humanistic aspect in your executive
summary so now that you know what goes into the executive summary which is only
one page I know you have to be very concise but
shows try to focus on key words key phrases then the rest of your business
plan is made up of the little plans that you’ve already worked on I highlighted
here the different weeks that we went over different plans so you can go back
and pick out those chunks of information that you turned in and make sure you
rewrite it into a paragraph one or two paragraphs or if it’s three paragraphs
that’s fine that really focuses on addressing and that particular item so
for example the industry plan I had everyone write industry plan some just
had responses specific to those questions you don’t want to have a
business plan that has questions and your responses right you want to write
in the third person so I know many of you have started off writing I plan to
do this my company is this so you want to change the wording from I doing this
or my business saying that the name of your business has the goal to achieve
XYZ the business name will develop partnerships with X Y & Z the marketing
strategy will be X Y Z I’ve noticed that in some of your business plan responses
in your homework assignments you emphasize well I would do this I will
tweet out information no for a business plan that was fine for the homework
before the business plan you want to rephrase it by saying our company will
have a division that focuses on Public Relation and they will tweet out on a
daily basis at least ten tweets now specific about our business product and
service that’s what you need to say so it’s not you doing it even though if
it’s like a one-person business you want to make sure that the instance sounds
were is sophisticated and and also that who knows maybe 10 years from now you
can have a multi-million dollar business industry have many employees who are
doing this and and they want to be able to read back what was your business plan
so your business pan is an official document of your organization’s
you want to treat it with respect and also try to really emphasize on what
is the need that you’re trying to fill and what the impact is here I just
wanted to highlight the different weeks that we went over two different plans so
it’s easy for you to go back so as an executive summary which is this week
week 15 the defect the definition of your business plan idea which is a
visibility was week 9 which go back to your business campus to look at what is
the special niche what is your value proposition and the Kussman segment that
you’re trying to reach and then we can we went over your industry plan and
market plan and in week 11 we went over your partnership and competition plan
with 12 we went over your operational plan week 12 we also went over your
financial plan which is that table now I know that I had everyone to a table to
look at your expenses and your revenue just for simplicity you can put a table
in your business plan but you might want to put some description about what goes
on inside the table for example many of you put it in a couple you know with
some expense for daily tasks which is fine for the table right because you
don’t want the table would be too clustered with text right the table
should be very clean with numbers and they can see what where the numbers are
what numbers mean so underneath the table you might want to have a footnote
or some description that describes daily tasks will include answering phone work
on the website going out to the community printing service so those
would be examples of daily tasks um that you want that you might want to have a
footnote you might even describe some of these daily tasks in your operational
plan because your operational plan should match your financial plan so
that’s why I had those two plans go together then you had your marketing
strategy which was week 13 here I had everyone focus on developing a social
media tool as well because you know now a people are socially connected so I
think you know if you don’t put some type of social media tool your funders
will be scratching their head thinking like well isn’t this you know how you’re
gonna reach your audience and here even if you may not be the tech savvy of
using the social media tools but you explained that the
importance of maybe using a Facebook campaign so in your in this part you may
say well X Y & Z my business name will hire XYZ Consulting Group to help us
with the marketing strategy specifically on Facebook campaign because X Y & Z so
you want to explain why you’re investing because the money that you’re asking for
these funders is going to go to this PR firm to do the ads for that Facebook now
if you’re very tech savvy you can even just emphasize that there’s gonna be
some cost savings because this is gonna be done in-house by your business to do
the PR so there’s definitely a lot of ways that you can you can really you
know want to emphasize the strengths but also that even if you have witnesses in
your organization you may be outsourcing some activities that’s okay because
maybe there’s a long term cost savings and also that your organization can
focus on on giving its expertise to serve the particular community and to
really make sure if your business is successful there should be an evaluation
plan so I had everyone do a logic model or you can even describe what your
evaluation plan of the process and outcome and then at the end of your
business plan should have like endpoint right so are you gonna exit after five
years or do you imagine yourself expanding partner name is gonna be a
franchise you know what’s the implementation expansion strategy here
funders like to see the you know see what happens what’s with where does this
all lead to and so they want they have it
what is the end in mind so if you can tell them have an image about where you
see this going then they’ll be more likely to invest in you upfront then all
right so let’s go over how the agile business plan should look so I want you
guys to have a lot of fun with this part which is the cover page it should be
very simple but you can make you know if you have a logo have fun with that put
your logo make your font if your if your logo is just the font size of your
business name that’s that’s okay I mean I’m saying have fun with this because
this is what makes it outstanding and also for your funders to
see like you know where’s your creativity
because the rest of the plan is going to be all text right so you want the cover
page to be a little fun after the cover page is the table of
contents so you might want to do the table of contents at the end filling
what after you finish filling out the rest of the plan because you don’t know
what pages goes to what table of contents unless you want to go ahead and
highlight all the headers in Microsoft Word so that you can automatically
update your table of contents now this week’s assignment is really
this part right which is the executive summary which is one page in the front
people say should be double-spaced or single-spaced it’s really up to you I
mean I mean I’ve seen most executive summaries to be single spaced because
you’re trying to cram all my ten different sections in one page so I’ve
seen executive summaries to be mostly single spaced with the same font size no
figures no references it’s just just the one page that stands on its own because
think of it this way if the donors don’t read anything else of your business plan
even though you put like sweat and tears and working on your plan at least they
have something right they have a summary they can read they understand what it is
because you know you want to anticipate that if they’re just so busy they won’t
be able to be anything else they at least have an idea of what you’re
offering why you and how much money you need from them and then for the rest of
the business plan is where you just fill in the other plan so this part is is you
know if you’ve already been writing in paragraphs usually we just have to cut
and paste make some modification based on suggestions and also suggestions such
your classmate gave you the bit of voicethread on your business idea then
you have your industry plan your market plan your partnership and competition
plan your marketing strategy plan your operational plan your financial plan oh
so I do want to emphasize that when you discuss the financial part in your
executive summary you want this to be really to the point which is how much
money you’re asking for what does the anticipate profit or profit margin right
if you want to use some of the percentage that you learned in the
module be about financial planning right you can talk about what’s the return on
investment you can emphasize on those type of financial terms and what is the
what where would the money go to right you want so this could be summarized in
a couple sentences you know to to make an impact
you know XY and Z our company or our business seeks two million dollars to
achieve XY and Z right so XY and Z should relate back to the
finishing your product and service which was in the first part of your business
plan right so you want to make sure that the different sections all connect back
to the mission statement right so you’re not just asking for money just you know
without any explanations you have a specific amount for what and over a
timeframe so you might say to make an impact and XY and z community our
company seeks X million dollars to achieve XY and Z right so these are the
activities that maybe you can get some information from your logic model right
what are those activities to make an impact over the course of five years to
see a change in X Y Z so I just basically use some of the information
from my financial plan a little bit from the evaluation plan and made a paragraph
about where this money is going so in the executive summary there should be no
tables it should just be paragraphs single spaced um and just really
emphasizing on key key factors and then the last part right of your your
business client is dick is the evaluation plan you can throw a logic
model with some descriptors and the implementation or exit plan so in
summary the business plan can be between ten to forty ten to sixty pages
depending upon your particular service and products but most importantly is
that you want to emphasize the most relevant important factors that the
funders want that you want the funders to know about your particular plan and
why they should invest today why don’t you invest in you why they should invest
in this community because if they don’t XYZ bad things will happen right so you
want to emphasize these really emotional connection even though you’re writing
about a business you asking for money but you really want to add back some
humanistic wording into it so that they’re not just reading a plan that’s
asking them for money as all these statistics but there’s like there’s a
human factor to it

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