In this series of installments I am discussing the executive summary and how to make it stand out. The executive summary should present the compelling reason for the investor to buy into the company.
Yesterday, I asked if after reading someone’s executive summary you ever wondered what they were doing. Today, I ask if, once you figured that out, you then asked, why? What is the compelling reason that this project is going to make money?
That is the second biggest thing that investors want to know. First, what are you doing? Second, why is that important to me? Why will that make a lot of money?
Therefore, the second part should address: What is the market proof that the company is doing the right thing? There are four points I address here:
- How big is the market?
- What does the market pay for this product/service? Will it change and why?
- Who are the biggest players in this market and how big are they?
- What indicators show the market is growing and that the company will make money?
Think about this: if it’s a small market, the market is shrinking, and there are already huge players in the market, then it may not be a good market to get into and make a home run. However, say it’s a huge market, the market is growing, and some big players are already exploring it, then its possible. Do not think that big players means you are excluded. Big players often move slowly, or have to invest in massive projects that take a lot of time to finish.
Do not waste the investors time. You just told them what you are doing, and now you are telling them why this is going to make a lot of money.
Remember, it is about the win.
