The Executive Summary

This is the single most important chapter of the business plan. It must summarise in not more than 500 words the whole argument which is set out in greater detail in the following chapters. The Executive Summary will be the first thing which is read by the prospective financier. In a number of cases it may be the only chapter which is read if it fails to present a convincing case. Most financiers receive many more request for funds than they are able to grant and so are not highly disposed towards unravelling a potentially dubious proposition.

There is a real danger that the Executive Summary may fail to perform its function since it is inevitably the last section to be written. It may seem to be a simple matter to write only one or two pages. But, the Executive Summary will be prepared after a lengthy and potentially during process and so there may be an understandable desire at this point to finish as quickly as possible. The writers will be confident that they have ironed out all the problems and they may feel that even if the Executive Summary is not completely clear, all the necessary information is in the document somewhere. However, it must not be assumed that the potential financier will take the trouble to search through pages of data to uncover vital information.

Above all, it must be remembered that the page or two of the Executive Summary must contain the most powerful and persuasive message of the whole document. So it is well worth the extra effort to have the Executive Summary read and checked for completeness and clarity by each of the writers involved. It is also helpful, if possible, to have it read by any neutral persons who enjoy the confidence of the compilers of the plan. The document should be well presented, neatly typed and in an easy-to-read format.

Only the most important numbers must be used in order to make the case as strong as possible. Careful attention must be paid to avoid clumsy grammar, obscure jargon and silly typing errors since these all have a disproportionately negative effect.

CHECK LIST
- What is the business name and area of activity?
- Who are the key contacts?
- What is the scope of the business and of the market potential for its products?
- What resources, human and financial, are needed for the venture?
- When will the business make a return?
- What historical data do you have on your abilities to carry out the venture?
- What is the mission statement of the venture?