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A Review of "The Five Keys to Building Relationships Online"
If you are a practitioner of business networking, you know that you can only connect with so many people at each event. But, what if you had the opportunity to connect with 20 new potential clients every day? How about 50 or even 100? With the...
How Safe is Your Success? Part 6 of 8
"How Safe is Your Success" is a series of eight articles that address different aspects of a universal problem which is of particular importance to those who do business on-line. Most Internet users are at least aware there are dangers "out there",...
How to Monetize Your Free Website
For some time now I have been aggressively marketing my Geocities website without the prospect of any financial return. The site is content based so I did not expect to generate any product sales and neither was I able to lure potential...
Making Cultural Differences Work in Your Business
Advancements in technology have made the world so much smaller, don’t you think? We used to be separated by mountains and oceans, color and culture.
But now on the highways and byways of the internet, we’re but a single mouse click away....
Time Management Tips for Managers
Late last year I was presenting a workshop for the senior managers of a major organisation. Whilst doing a pre-workshop survey to assess the challenges these managers were experiencing it became very apparent to me that many of them were showing...
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Two Types of Executive Summaries
Companies seeking capital often ask how long the Executive Summary of their business plan should be. The answer depends upon the use of the summary, mainly determining if 1) it precedes the full business plan, or 2) it will be used as a stand-alone document.
When the Executive Summary precedes the business plan, its length should be short, typically only one to two pages and certainly no longer than three pages. This is because the Executive Summary is not meant to tell the whole story of the business opportunity. Rather, the summary must simply stimulate and motivate the investor to learn more about the company in the body of the plan.
The second type of Executive Summary is a stand-alone document. That is, it is given, by itself, to investors for their initial review. If interested, the investor will then request the full business plan. A stand-alone Executive Summary is often used to limit the flow of information. That is, if an investor is not interested in the general opportunity that your summary presents, you don’t want to reveal to them intimate details of your plan.
Regardless of which type of Executive Summary you are developing, the summary must included the following critical elements: •A concise explanation of the business •A description of the market size and market need for the business •A discussion of how the company is uniquely qualified to fulfill this need
In addition, a
stand-alone Executive Summary should include summaries of each essential elements of the business plan. This includes paragraphs addressing each of the following:
•Customer Analysis: What specific customer segments the company is targeting and their demographic profiles •Competition: Who the company’s direct competitors are and the company’s key competitive advantages •Marketing Plan: How the company will effectively penetrate its target market •Financial Plan: A summary of the financial projections of the company •Management Team: Biographies of key management team and Board members
The Executive Summary is the most critical element of the business plan. If it does not grab the investor’s attention, the investor will neither read nor request the full business plan. As such, spend time developing the best possible summary, create two versions (e.g., stand-alone and full plan predecessor) as appropriate, and work to get it in the hands of the right investors.
About the Author
As President of Growthink, Dave Lavinsky has helped the company become one of the premier business plan development firms. Since its inception, Growthink has developed over 200 business plans. Growthink clients have collectively raised over $750 million in financing, launched numerous new product and service lines and gained competitive advantage and market share. For more information please visit http://www.growthink.com.
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