Every investor wants an executive summary. It is the entire business plan in miniature form: 1 or 2 pages. Typically, it is written after the business plan but since it is either the first thing or only thing read by potential investors, it needs to be the best written.
There are different ideas on how to write an executive summary. Some say it should be the plan in miniature with the same outline. Others say it should outline the problem, background information, proposed solution, alternatives, and any conclusions. I suggest that the executive summary be a highly selective form of the business plan with sections answering the following key questions:
Bottom line, what is the goal?
What is the market proof the company should do this?
What is the management and existing company and what are the key accomplishments to date that state they should get investment? Why them?
What is the first item the company will produce with the money, and therefore, why do they need the money (how is the money going to be used)?
What are the high level elements of the marketing plan and are there any key activities happening now?
Why will this project be successful?
What is the major risk issue and how is it being addressed?
Why is the company talking to outside people and what do they want from the investor? What is their exit plan and how will they repay the investor/bank, etc?
These are the key points that the primary audience (investors, loan officers, etc) need to know if they want to read further or throw it back in the pile. This information will get the attention of the reader, and give them an incentive to read more or talk to you. More on each question later…
