Your executive summary is the doorway to your business plan—an executive summary is your opportunity to grab your reader’s attention and let them know what it is you do and why they should read the rest of your business plan or proposal. Drafting a proper executive summary is essential to procuring funds and encouraging investments for your business. Here are a few points that you need to keep in mind while drafting an amazing executive summary:
Structure of your executive summary:
Your executive summary should be such that an investor should be able to find all the major information about your proposal. The wording needs to be professional, but precise. After reading an executive summary, your potential investors should know all of the major points that you want to make in 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.
Keep your audience in mind:
While drafting your executive summary to ensure that you keep in mind the educational qualification and interests of your readers. You must be able to write an executive summary that will sustain the interest of your readers. Unless they are interested in your plan, you cannot expect them to be interested in investing in your plan.
Unless it is absolutely necessary to avoid the use of technical jargon, they tend to bore your readers which is not a good idea when you in fact desperately need them to be interested. In short – No interest! No money!
Be very clear:
Honesty always helps to win the confidence of your potential investors. Investors understand that any new start-up will have a considerable amount of risk, but what they are looking for is an entrepreneur who has considered the risks and has a plan for dealing with them. Therefore, be very sure to clearly outline your plans on how you want to tackle such risks.
Things to avoid:
The goal of an executive summary is to get the investor to read your business plan or to meet with you. With that in mind, it is important to clear your vocabulary of too many superlatives, clichés, or claims that you can’t back up with statistics or data. You should avoid using terms like “the best,” “groundbreaking,” “cutting-edge,” and “world-class.” You potential investors tend to see these words every day and most of the time such words make little sense to them.
These are just a few points and while keeping all of them in mind you must ensure that your executive summary depicts the identity of your start-up. It is also a good idea to let a school kid read your executive summary so as to ascertain if you are able to clearly communicate your ideas. At the end of the day, you need investors and to get through to them you need to be able to communicate well.