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Executive Summaries
Executive Summaries are as important as an in-depth business plan since most investors and lenders do not want to review a detailed plan until they have been enticed or interested by a review of a concise and outlined Executive Summary. There is no rule of thumb on the length or detail that should be included in an Executive Summary, just like there is no set guideline for business plans. However, there are guidelines that will satisfy the needs of the majority of investors, depending on a combination of factors include the amount of capital needed, whether the principals have invested or will invest substantial capital, and the type of business among others. Guidelines on Executive Summaries vary accordingly as noted below:
* Small business plans – Even a ten-page business plan that should suffice with attached forecasts for some investors or for the SBA FastTrack Program should have an Executive Summary, typically one page. For even smaller plans, a tight one-page cover letter that includes a few bulleted key items from the business plan may also suffice.
* Medium-sized plans – For plans that are typically 15-30 pages in length, seek an added layer of equity investment and need more detail, an Executive Summary of two to three pages is recommended. The Executive Summary should follow the Table of Contents as two of the business plan sections that are included in the plan, with a maximum of a paragraph or two summarizing each section.
* Larger plans – These are typically 30-50 pages or more, and the Executive Summary could be expanded to as much as five pages and should include the same concise information following the Table of Contents from the sections of the entire plan including summarizing what could be 10-15 pages of forecasts and cash flow analysis into one page or less.
These are guidelines only. In more detailed and lengthier plans, the best Executive Summaries are completed after the business plan is completed so that the best of the plan is condensed into an Executive Summary that gets the attention of SBA Lenders or equity investors.
Feel free to ask us for more information.
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