Growthink Reveals Two Types of Executive Summaries
Highlights two types of Executive Summaries that companies need to prepare in completing their business plans
Los Angeles, CA (PRWEB) February 19, 2005 --- In response to constant confusion over the appropriate length of an Executive Summary, Growthink announced today that companies should prepare two types of summaries in completing their business plans. Specifically, Growthink has found that the type of Executive Summary should depend on whether it precedes the full business plan, or if it will be used as a stand-alone document.
According to Growthink, 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. 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 that Growthink revealed 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 dont 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 companys direct competitors are and the companys 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 investors 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.
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. Growthink has become the firm of choice for venture capital firms, angel investors, corporations and entrepreneurs in the know. For more information please visit http://www.growthink.com.
Contact Information
Growthink
1800 Abbot Kinney Blvd., Suite B
Los Angeles, CA 90291
Tel: 877-BIZ-PLAN (877-249-7526)
Fax: 310-943-2693
Email: info@growthink.com
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