Executive Summary

Part of the problem lies in the terminology itself. An "executive summary" would seem to imply that the first few pages of your business plan should include a complete recap of the entire plan. This seems simple enough. Just copy and paste a few key paragraphs from each section of the plan and there you have it - ten pages with 95 paragraphs that have absolutely no flow, no continuity and no emphasis on what is or isn't important to the reader. Reading a dictionary is more invigorating.

Not surprisingly, one of the most common criticisms of executive summaries is that they invariably include too much information. There may be a few nuggets in there somewhere but finding them buried as they are is a real challenge and one that very few investors  are willing to undertake. Simplicity is the key.

An executive summary should strive to accomplish one key objective - Sell. Not to inform, or to educate. Not only is the summary your best chance to plant a hook, it is in most cases your only chance. Conceptually, the summary should be more along the lines of the proverbial elevator speech. A maximum of three to four pages, is what grips the reader and compels them to move forward with the rest of your plan.

The executive summary should include a very brief description of your business model, a recap of the opportunity, a summary of the market and your positioning in the market brief bios of your management team. Many plan writers also include use of proceeds and a summary of the income statement. But most importantly, you want to focus on what your company brings to the table. What is your unique selling proposition? What will separate you from the rest of the pack?