Whether you are a pro entrepreneur in Canada by now or you’ve just started with your entrepreneurial stint sometime back, you’ve probably heard about an executive summary supporting a strong business plan. Why is that necessary? Well, this particular business document will give you the chance of digging deeper into the particulars of your firm, certifying that you can look out for mistakes before it’s too late to rectify the same. Hence, a business plan will help you maintain your funding, accounts, and other important information related to your organization.
What is an Executive Summary?
An executive summary is a brief introduction or a summary of your business plan. This is where you describe your business, your target audience, the solutions which you can provide, and your business’s financial highlights. Having a good executive summary will make it easy for you to grab your readers’ attention and will let them know about your business goals better. If it’s eye-catching, then it will also make them keep reading the rest of your business proposal. Also, if you are on the lookout for luring investors, having a good executive summary is important to attract them as well. So, how to write a good executive summary? We have a few tips for you to get that right. Read one!
The 5 Part Formula of Writing a Good Executive Summary
An effective executive summary need not be a lengthy one. You can, therefore, break it down into five key paragraphs.
Part 1: Overview
In the first paragraph of your executive summary, make sure to include a summarized overview of your business. It should have the name and the nature of your company, and every relevant insight that you can provide related to your industry.
Part 2: Target Market (Audience/Competition/Marketing Strategies)
The second part of your executive summary should have a clear and concise classification of your target market, including your audience, your competitors, your marketing strategies, and so on. It will also mention the pain points in the industry that your business will aim to provide a solution for. Your marketing strategy should include the ways your business is planning to reach your targeted audiences. This paragraph will make your readers excited about reading further to learn more about your firm.
3. Part 3: Operational Highlights
The third part should provide the readers with all your business’s operational highlights, such as your office location, about the proprietor/partners, and whether it will have a brick-and-mortar office or a remote, online presence.
4. Part 4: Sales Forecasting
This might feel a little difficult for you to state but your executive summary should have a sales forecast of your business for at least one of two after the implementation of your business plan. You can do this by calculating your break-even point and then informing your readers about a stipulated time when you can expect a profit for your project.
5. Part 5: Investment Requirement Details
If your firm needs financing and investments, you should mention the details of the same in the final part of your business’s executive summary. You should provide a clear number of the amount that your company would require to grow. And these investment requirements should perfectly align with the sales projections that you have mentioned in Part 4.
Wrapping it Up,
So, now you should have the required knowledge to draft an effective executive summary for your business. This will help you to back up your online survey verdicts. We hope this article has helped you with everything that you needed to come up with just the right kind of executive summary for your business plan.
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