BUSINESS PLAN 101: Executive Summary

This first installment in the "BUSINESS 101: How to Effectively Write a Business Plan" series covers the Executive Summary. It will teach you the strategic importance of an executive summary, how to effectively write one, and show you a successful Executive Summary I wrote with additional insights.

Besides the Financials section, the Executive Summary is one of the most important parts of your business as it summarizes effectively and efficiently all the main relevant points related to your business concept. It can literally make or break your chances of funding your business. Even though you know how good your idea is in your head, if you cannot convey your business concept effectively in your Executive Summary the chances of the potential investor reading the rest of your plan decreases dramatically.

Many potential investors and investment firms will first look to the Executive Summary to determine whether to spend any more of their time researching the viability of your business concept. Time is a huge resource to them; don't waste theirs. Make sure your Executive Summary gives an incredible first impression of your business you at least you have a chance.

An effective Executive Summary includes information about:

• BUSINESS LOCATION [BL]- Where is the business going to be located?
• BUSINESS TYPE [BT]- What will the business do? What type of business? Sole Proprietorship, Partnership, Limited Liability Corporation (LLC), Corporation, Special Purpose Corporation (SPC), S Corp, B Corp?
• MARKET DESCRIPTION [MD]- What market will the business be in? Why did you pick this market? Current options for customers?
• COMPANY PURPOSE [CP]- Why are you creating this business? What are your goals? What are you trying to accomplish?
• DIFFERENTIAL ATTRIBUTES [DA]- What makes your business unique? What are the benefits for your customers?
• COMPETITIVE LANDSCAPE [CL]- Who are your competition? Why are you a better alternative?

As you can see the information you need for your Executive Summary is all the information from your business plan. You just need to effectively summarize each business plan section in one or two efficient sentences and compile that information in a way that the reader will understand in a ONE-page Executive Summary. Again, it must be only ONE page. The rest of this article will show you how [BUT:FRP]

Most individuals are under the notion that since the Executive Summary shows up first in most every business plan that you should write it first. This is one of the biggest misconceptions about writing an Executive Summary.

Always write your Executive Summary LAST.

Let me say that again: always write your Executive Summary LAST.

To write an effective Executive Summary, you need tons of information about your business concept that you might not know when you get the inspiration to start writing your business plan. I have seen a lot of friends and colleagues with fantastic ideas fail because they started a business without a business plan. The reason why they didn't have a business plan is because the majority of them tried to do the Executive Summary first when writing it.

They got frustrated with the amount of information that needed to be in it and gave up on write the business plan all together. Instead, they just "winged it" and started and ran a business without no real plan or framework.

Some of them had short-term success because their idea was that incredible, but they all ultimately failed on their long-term missions, because they did not have the long-term vision of the company. Creating a business plan helps formulate this vision. Hopefully you learn from their mistakes.

This next section will provide you with a sentence-by-sentence analysis of a successful Executive Summary I wrote (italicized) with bold tags to help you easily identify the information.

FIRST PARAGRAPH
Incorporated in North Carolina, Full Tank Petroleum LLC is a limited liability corporation providing marine fuel delivery services to individuals and communities in the Lake Norman, Lake Gaston, Lake Wylie, Lake Lanier, & the Canals of Cape Coral. [BT] With the current economic state individuals are looking to decrease living expenses, Full Tank Petroleum intends to capitalize on this by supplying marine fuel to our customers at a cheaper price and a convenience unmatched by our competition. [DA]

The first sentence is a straight-forward declaration of what the business will do [BT]. I have found it is effective to put this statement first and make it as dry and easy to understand. It's literally the first thing potential investors read when they open your business plan. Make it count. It also includes the legal type of the business which is a LLC.

SECOND PARAGRAPH
Full Tank Petroleum’s company slogan is “Convenience. Value. Marine Fuel ONDEMAND.” [CP] We strive to enhance the overall boating experience of our customers through our high-quality delivery services. We aim to become a regionally recognized brand name, capitalizing on the sustained interest in the marine gasoline industry in the region [CP]. Our development goals are for rapid growth and expansion while maintaining annual profitability [CP].

The second paragraph of this Executive Summary effectively shares the Company's Purpose [CP] by including the company's slogan, mission statement, and future goals. Having a company slogan done and visualized is an indicator to potential investors that you have thought critically about your business concept. The goals you include this section will also reveal to the investors your true vision for the business. They let see the vision, don't hold back.

THIRD PARAGRAPH
Full Tank Petroleum’s office/warehouse will be located in Mooresville, NC and will target individual watercraft owners and storage facilities residing on the five lakes in four states the Company initially will enter in the first year of operations [BL, MD]. These markets are strong and growing as a result of many professionals being attracted to the economic climate and distinct lifestyles in this Southeast region [MD]. This market values convenience and is dissatisfied by the current fueling options that offer high prices and relatively no convenience at all [MD].

This third paragraph has the Business Location [BL] included to show the investors where the business will physically be located and operating from. The rest of the paragraph describes what markets the company will enter and the reasons why this specific market (s). You will need to do market research to come up with the information needed in this paragraph. Listening is essential to effective market research.

I thought of the idea of FTP when I heard people complaining about boating fueling options visiting my Aunt. I also received the information about Lake Wylie, Lake Lanier, and Lake Gaston from talking to friends and random people while traveling. Always be doing market research. With quality research, planning becomes efficient and effective.

LAST PARAGRAPH
No market leaders have yet emerged in the newly formed niche market of marine delivery services [MD]. Currently, consumers must either (1) drive by boat to marinas, pay higher prices, and do all the work of filling-up or (2) drive to a land-based retail gas station; fill-up already purchased portable gas caddies, and then transport the gas caddies to the location of the customer’s watercraft [MD]. Instead of these options, Full Tank Petroleum provides a fueling alternative that is superior to the current two options [CL]. Full Tank Petroleum maintains the following advantages over existing competition: lower gasoline prices, delivery service to location of customers’ watercraft, convenience centered, option for regularly scheduled weekly/bi-weekly fill-ups, customer performs no work associated with fueling, a budget-minded fueling option, and a coordinated marketing program [CL]

This last paragraph opens with two set-up sentences. Their purpose is to clarify the reader's understanding of the current market options and prime the reader for your final close. The last two sentences bring together all the information previously discussed and display it in a way to show the readers that your business is the best option to invest in, especially compared to the competition.

I really hope this information has provided some sort of value to you. I really hope Steemians can use this knowledge to benefit themselves and the community. Learning this knowledge has streamlined my ability to start any business concept quickly. Creating a business plan is a process, but once mastered it will make starting any businesses streamlined. My goal is by the end of this series, you all will be business ninjas that can effectively and efficiently start any business you want to at any time.

Stay tuned to learn about creating the Company Description, the next business plan section covered in @chiefmappster 's "BUSINESS PLAN 101" series. If you want to learn more about the series go here: https://steemit.com/howto/@chiefmappster/business-plan-101-how-to-effectively-write-a-business-plan

If you want to hear about my BUSINESS EXPERIENCE with the Cleveland Cannabis College go here: https://steemit.com/marijuana/@chiefmappster/business-experience-the-cleveland-cannabis-college

Thank you as always for your time and attention.

Namaste

@chiefmappster