What Does Your Executive Summary Say About You?
While only 2 pages in length, the executive summary is by far the most important component of your business plan or proposal. It is designed to summarize the key elements, capture attention and most importantly, showcase the financial highlights.
So, if you only have 2 pages to convey a significant amount of information and summarize the financial upside, how do you decide what to put in and what to leave out? Which financial features are critical to emphasize?
Depending on the purpose of your document and the intended audience (investment, sale, partnership, strategic alliance, joint venture etc.), you will want to tailor your financial disclosure to suit their needs and expectations. What would they want/need to see in order to make an informed decision?
At a minimum, you need to clearly state what financial input is required from them and what they will get in return – i.e. a share, debt instrument, license, exclusive right etc. Next, highlight the expected net profit and cash flow over 2-3 years. Also, give a clear indication of return on investment (ROI) AND a realistic, well defined exit strategy.
In an executive summary, it is important to be succinct and focused. It is not the time to tell your life story, overpromise with unrealistic projections or overwhelm with too much detail. You will only get one chance to make a good first impression and capture the attention of the reader. In fact, many sophisticated investors have told me they rarely read a business plan or proposal in its entirety. They make their decision on the strength of the executive summary and their assessment of the owner/manager (in terms of character, knowledge, skills and tenacity).
Focus on “what’s in it for them”. Show them clearly how they can benefit and when the result will be crystallized. Give them enough detail to understand the industry, opportunity and unique solution you provide. And most importantly, clearly summarize the key financial metrics of profitability, cash flow and ROI.
In short, make it EASY for them to invest in YOU.
Article Source: http://EzineArticles.com/6107414
By Andrew Beam 01 May 2012
Perfect – just the info I was looking for!