Plan of businesses (Part 1):

22 August 2009 - 12:41

The executive summary is the first part or section of a plan of businesses. It consists of a summary of the most important points of the other parts of the plan, reason why it must be put at the beginning of this one, but to be elaborated after to have culminated the other parts.

The objective of the executive summary is that the reader has a general and brief vision of the project, can include/understand in a single reading of what the business consists, and that is generated interest by the project and to deepen in the reading of the other parts of the plan.

Often the reader of a business plan (for example, a financista potential or investor), only decides to read the executive summary to make a fast decision, reason why always we must pay special attention in its elaboration.

Generally, all executive summary would have to fulfill the following 3 requirements:

• To explain clearly of what the business consists: by more complex than it is the business, the executive summary must allow the reader to understand clearly of what the business consists from the reading of front page.
• To create interest in the reader: the executive summary must be able to generate in the reading interest by project and to deepen in the reading of the other parts of the plan.
• To be a summary: the executive summary must invite to the reading and, for it, it must be, indeed, a summary; the recommendable thing is that this one does not include more than 3 pages.

Next we see the elements that would have to include an executive summary:

• The initial datas of the business: the name of the project or business, its location, the type of company, etc.
• The description of the business: of what the business consists, the product or the service that we are going to offer, which are their main characteristics.
• The differentiating characteristics: what we are going to offer that is innovating and novel, and that goes to allow to us to differentiate to us or to distinguish to us of our competitors.
• The competitive advantages: the aspects where we are going to have advantage before the other competitors.
• The vision and mission: which will be the mission and vision of the company.
• The reasons that justify the proposal of the business: the reasons for which has been attractive the business idea, that is to say, the reasons for which the idea like a business opportunity has been considered.
• The objectives of the business: the main objectives that will look for once start up the business.
• The strategies: the main strategies that will be used to secure the objectives.
• The work party: the people who will carry out the project and those will administer that it.
• The required investment: how much it is what we are going to need investment, how much we will use of equity capital and how much it is what we are soliciing like external financing.
• The yield of the project: the results of the used indicators of yield.
• The environmental impact of the project: a summary of the environmental impact of the business and how it will be diminished or it controlled.
• The conclusions of the project: the conclusions at which it has been arrived once culminated the development from the plan of businesses. This part could be including at the end of the plan, after the financial study.

The recommendable thing is that the executive summary is written of in excess, that is to say, that each of their elements is developed in a paragraph without making use of titles as in the other parts of the plan.

When writing it we must consider both main objectives of the executive summary that are to describe clearly the business, we must try by it that the reader knows of what consists the business from the reading of front page. And generating interest in the reader, for which we must use a positive language, to clearly indicate the factors that will allow to the viability and sustainability of the project, and not to include many pages in its development.

As we have mentioned, the executive summary is a summary of the most important points of the plan of businesses, reason why each of to its we can see them elements developed in the other parts of the project.

Labels: Creation of businesses, Step by step, Plan of businesses

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Related contents:

1. Plan of businesses (Part 2): The definition of the business
2. Plan of businesses (part 8): The evaluation of the project
3. Plan of businesses (Part 4): The technical study
4. How to formulate a plan of businesses
5. Plan of businesses (Part 7): The study of the income and debits