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Business Plan Executive Summary

Simple Alliance, Kenya Limited


Definition

Business planning requires you to prepare a business plan. The executive summary is the initial part of your business plan, or business proposal, after the cover page. This section is usually between 1 and 3 pages long. It is basically a condensed version of your entire business plan. The executive summary briefly mentions the key business plan elements.

Importance

Depending on its organisation and contents, your business plan executive summary could spurn or entice your audiences. Since it is usually the initial business plan segment your audiences encounter, you need to ensure that the executive summary segment is adequately appealing.  The executive summary is significant to two types of audiences, namely:

  • General readers
  • Prospective lenders

General Audiences

Your executive summary will give your general readership an idea of your professionalism. This perception derives from how well or badly you have drafted and organised your executive summary. Readers may thus be motivated to pore deeper into your business plan. Alternatively, your audiences could conclude that your document is sloppy and thus not worthy their consideration.

Potential Financiers

How poorly or well you organise and present your executive summary has a significant bearing on your potential funders’ perceptions. A properly organised executive summary section could spur potential lenders’ interest in your business. This is because lenders may conclude that your business is viable based on your succinct presentation of business details through the executive summary segment. On the other hand, a messy executive summary will likely push away potential lenders. The prospective financiers may view you as an unprofessional business person.  

Major Elements  

In the executive summary section of your business plan you present a number of business data, such as:

  • Business concept
  • Fiscal requirements
  • Business fiscal features
  • Business present status
  • When your business was launched
  • Major staff
  • Key business owners
  • Business key milestones

Useful Tips

You will prepare an effective business plan executive summary if you observe certain key principles. These codes include:   

Creating the executive summary after developing the other business plan sections 

  • Revising your executive summary
  • Backing up your claims
  • Ensure briefness and clarity

Executive Summary as the Last Section

You need to first write your business plan up to the end before drafting the executive summary segment.  This scheme will enable you to identify crucial business plan parts that you will incorporate into your executive summary section.  You do not necessarily have to copy and paste entire business plan segments into the executive summary part. Rather, all you may need to do is paraphrase or otherwise mention the business plan concepts within the executive summary.  

Fine-tuning the Executive Summary

Polishing your executive summary ensures that it is devoid of errors. This check makes the executive summary clear and properly presented. You could ask familiar as well as unfamiliar persons to help with this.   

Adequately Supporting Assertions

Back up any claims you make in your executive summary with relevant data. You could quote statistics from industry organisations or from market research.   

Making your Executive Summary Succinct and Clear

Take note that your readers are busy and would like to easily decipher your point so as to save time. Consequently, be brief and clear.

Executive summary is a significant business planning tool. The executive summary section follows the cover page of your business proposal or business plan. It gives potential lenders a sneak preview of your business.  The executive summary also helps audiences to form perceptions of yourself as well as of your business.  This brief and succinct section provides important business details such as;  Business concept, Fiscal requirements, Business fiscal features, Business present status, When your business was launched, Major staff, Key business owners, and Business key milestones. The executive summary needs to be brief, comprehensive, and without errors.

Copyright (C) 2016, Simple Alliance Kenya Limited

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