Taking another quick break from discussing executive summaries, since something just cropped up that is worth mentioning:
Recently, while reading through a business plan, I discovered that the writer left out the exit plan. Upon asking, he told me they sometimes include it and sometimes take it out, depending on who they were giving it to. In my case, they felt that I would more likely introduce them to an investor rather than invest myself, so they left it out.
My position is that you should never leave that out, or anything else out. The purpose of showing me the plan was to get my evaluation and consideration to show it to an investor. However, I am going to protect my relationship to investors. My credibility is on the line when I ask them to look at a plan that I approve. Without seeing the exit, on how the investor will make money, I cannot believably support the plan.
It wastes the investors time for them to have to ask for it and it could indicate a problem. Furthermore, it may be the first section that investor turns to when they read a plan. Most people when they read a plan first turn to the section they care about most. For some that is the financials.
If you do not discuss it, then we cannot tell if you are hiding something bad, you did not think about it, or you were just leaving it out feeling it was not necessary. Most likely, it is either something bad or you did not think about it. In both cases, an investor would turn it down.
Do not leave things out.
