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How to Write an Executive Summary
When presenting your business to potential venture capital investors, you need to have a well developed, professional business plan. One of the most important parts of a business plan is the executive summary. The executive summary is the first place you have to make your business shine in the eyes of the venture capital firm you are working with.
Your executive summary needs to be a place where an investor can go to find out a summary of all of the major information about your proposal. The wording needs to be professional, but precise. After reading an executive summary, your contact in the venture capital investment firm will know all of the major points held within the entire business plan. This way they can decide if you are a good investment or not without taking the time to read your entire document. That reading will come later, if and when they decide to take your investment on. Use information in your executive summary that is unbiased and factual.
When writing your executive summary, take time to think about your readers. Remember, the people who are reading your summary are financial experts and business people. Think about what their level of education is, where their interest lie, and what they are looking for in an investment. With this in mind, you can write a successful business plan summary that will appeal to your readers. Whenever possible, avoid the use of technical language unless you are applying for financing in a firm that usually handles technology related businesses. If the technical aspects of your potential business are important, put them in the larger document. Those who want to read them will take the time to find them there.
Include your executive summary in your business plan, at the front of the document. It is attached to the plan, not included separately. Usually, a page of typed writing is sufficient. Some large businesses may need more than a page, but the executive summary should be less than three pages. If it is more than three pages, the venture capital firm will not take a second look at it. Leave out the details, and give more of a broad overview of the business.
Be sure to explain what risks you face, and what your plan is to overcome those risks. This will show your potential investor that you have thought of all possible aspects of your business, and make it stand out. Venture capital investors understand that any new business is a risk, but what they are looking for is an entrepreneur who has considered the risks and has a plan for dealing with them. Write your business?s executive summary as the last part of your business plan. This way you have a clear idea of where your business is headed before you start writing it.
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