Lesson 6: Polishing Up

The last two sections of the business plan, the Executive Summary and the Appendix, are the sandwich bread to the meat, so to speak.

The Executive Summary is that critical portion examined first by investors and lenders, yet completed after all other sections have been completed.

The Appendix, on the other hand, is where you supply all the back-up documentation needed to substantiate what you write about in your plan.

Let's look at these two.

The Executive Summary

As previously stated, the Executive Summary is that critical portion of the business plan that's looked at first but written last. By preparing the Executive Summary last, you will be able to write it more easily and with greater impact, since you will have already compiled your data in other sections of your plan. Simply transfer the "sizzle" of the plan into concise paragraphs that then become your Executive Summary.

Here are some key steps to take:

1. Begin by explaining when the company was formed and what you sell, distribute or manufacture.
2. Next, explain the purpose of your operation by stating what products and/or services you will provide for your customers; then title this the "Statement of Purpose."
3. Indicate what phase of operation your business is presently in. Show projections which demonstrate that you will cut operating costs by a certain percentage and increase sales by a certain percentage. These two important items will result in a faster turn of cash flow to the company.
4. Next, create your own Mission Statement. This is the driving value or principle that has you be in business, even when business isn't going according to plan.
5. Now give some background information on
   • the market
   • your customers' buying habits
   • how you will educate your customers about your product/serrvice
   • what type of quality products/services you sell
   • whether or not you will be able to buy from different suppliers at lower cost
   • who you are buying your supplies from
   • how much your operation has produced in annual sales over the past 3-5 years, if your business has been in operation for that long
   • If you have operated at a loss,indicate why and then explain how you will correct this problem
   • Revenue projections for your next fiscal year, and projected annual revenue growth rate (by percentage) for the next five years
6. Now, begin explaining the concept of your products and services. Use comparisons of similar products and services currently in the market. Indicate any special training required for you or your staff, managers and salespeople to properly produce, sell and distribute your product/service.
7. Follow this up with whatever strategies you will use to meet the competition. Also explain the market share you presently enjoy, or will enjoy.
8. The next step is to clarify your Target Market. Define your typical customer profile using the information that you wrote down earlier in Lesson 3. Also, indicate any additional products you believe your targeted market will respond to favorably.
9. Next, explain if your products are protected by copyright, trademark and/or US patent laws.
10. Are responses from customers or potential customers favorable? Indicate this also.
11. The next steps that you will take are relatively easy, since you have already compiled the data in other sections. Just give the most important details in succinct fashion. The next "mini-sections" within your Executive Summary should be, in the following order:
    • Objectives
    • Management
    • Marketing
    • Finance
    These sections, along with the previous ones, will make a solid Executive Summary, and give powerful, persuasive information to your reader.
    
    
    

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