How to write an Executive Summary for your Business Plan

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A short, powerful tool to write a winning Executive Summary for your B-Plan.

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  • 1. CenterforEntrepreneurialLeadership February3rd,2007

2. Whatisit?BriefsummaryofallthesectionsoftheBPlan Alsoincludesimportantfinancialnumbers CenterforEntrepreneurialLeadershipFebruary3rd,2007 3. Why? Executivesummariesarealsousuallythefirstthings readandanalyzedbypotentialinvestorsSo,it'saveryimportantpartofyourplanCenterforEntrepreneurialLeadership February3rd,2007 4. MoreimportantlyItsthefirststepofanyBPlancompetition CenterforEntrepreneurialLeadership February3rd,2007 5. CoverPage&LengthCoverPageshouldn'tbeclutteredIncludeonlyessentialslikeCompanyNameTeamMembersLLogowithTagline ithT li 23pages,excludingthecoverpage2 3pages excludingthecoverpage CenterforEntrepreneurialLeadership February3rd,2007 6. Itshouldstartwith,Product/ServiceDescription BusinessConceptandDescriptionoftheOpportunity CompanyDescription MissionStatementCenterforEntrepreneurialLeadership February3rd,2007 7. CenterforEntrepreneurialLeadership February3rd,2007 8. WhatandWhy?Market=Theworldofcommercialactivitywheregoodsandservicesareboughtandsold.Therefore,MarketAnalysisdealswiththevariousTh f M k A l i d l i h h i aspectsofthemarketwhichthereviewermayormaynotbefamiliarwith.notbefamiliarwith AndWhy? CenterforEntrepreneurialLeadership February3rd,2007 9. MarketanalysisconsistsItshouldenableyoutoidentifytargetcustomers,theirexpectations,incomelevels,expenditure,yourdistributionstrategies etcdistributionstrategies,etc. Itshouldbebasedonfactslikesurveysandestablisheddata CenterforEntrepreneurialLeadership February3rd,2007 10. CenterforEntrepreneurialLeadership February3rd,2007 11. How?DocumentcurrentstrategyofeachprimarycompetitorSpyonthem!!SourcesSPublicInformationMarketresearchprojectNewspaperreports,catalogs,interviews withdistributorsElse,goGOOGLEing!!! CenterforEntrepreneurialLeadership February3rd,2007 12. Contd.SWOT(StrengthsWeaknessesOpportunities&Threats) Analysisofeachcompetitor AreyoufillingavoidintheMarket? Formulatethemarketstrategy. CenterforEntrepreneurialLeadershipFebruary3rd,2007 13. IntheExSumYoucanwriteafewlinesaboutyourmarketwhichyouwouldhavelearntfromyourMarketAnalysis ItisagoodideatouseVisualaidslikeFiguresandGraphsfortheabovepurpose Itisrecommendedtomentionthesourceofsurveysanddata YoushouldalsowriteaboutyourMarketStrategy CenterforEntrepreneurialLeadership February3rd,2007 14. CenterforEntrepreneurialLeadership February3rd,2007 15. Financials Whydoweneedone?AssessmentConfirmationQuantificationCalculationBudgeting CenterforEntrepreneurialLeadership February3rd,2007 16. Components Financials Income Balance AssumptionsCashFlowStatement Sheet CenterforEntrepreneurialLeadership February3rd,2007 17. AssumptionsAlwaysspecifyassumptionsinfinancials Validassumptionssuchas Rateofrevenueexchange DepreciationRate SeasonalTrends Royaltyetc y y CenterforEntrepreneurialLeadership February3rd,2007 18. CashFlowTransferofmoneyinandoutoftheenterpriseCanbecalculatedas:cash+sourceofrevenue expenses capital h f i lAvoid:UnrealisticAssumptionsUnderestimationofNeeds CenterforEntrepreneurialLeadership February3rd,2007 19. IncomeStatementHowgoodthecompanyisatmakingmoney.IncludeSalesRevenueSalesCostsGrossProfitOperatingExpensesOperatingIncomepgNetIncome CenterforEntrepreneurialLeadership February3rd,2007 20. BalanceSheetWhatthecompanyownsandowes.Themainformulais:assets=liabilities+shareholdersequity li bili i h h ld iTocreateabalance Knowyourassets Learndifferentliabilities ShareholdersEquity q y CenterforEntrepreneurialLeadership February3rd,2007 21. CenterforEntrepreneurialLeadership February3rd,2007 22. Wikipediasays:Riskanalysisisatechniquetoidentifyandassess factorsthatmayjeopardizethesuccessofaprojector achievingagoal.g gCenterforEntrepreneurialLeadership February3rd,2007 23. AnalyzeConductabusinessriskassessmentagainsteachbusinessfunction.Eliminatenoncriticalbusinessprocessesfromacontingencyplanningproject. lListandprioritizebusinessfunctionsthatrequireacontingencyplan.contingencyplanRevisecontingencyplanningprojecttaskstoreflectthenewpriorities.Managetheidentifiedrisksaspartofoperationalmanagementpractices. CenterforEntrepreneurialLeadership February3rd,2007 24. AssessEconomic/FinancialLegalOperationalMarketingGrowthCenterforEntrepreneurialLeadership February3rd,2007 25. ContinuedDeterminethecriticalityofaprocesstoyourbusiness.Assessthefailureprobability/riskcriticalityscore.Developacontingencyplanbasedonthescore. CenterforEntrepreneurialLeadership February3rd,2007 26. CenterforEntrepreneurialLeadership February3rd,2007 27. TosomeitisTHEcriticalfactor. Include PersonalDetails PlD il FieldofExpertise TitleofPosition PreviousExperience PreviousSuccess Education SpecificSkillsCenterforEntrepreneurialLeadership February3rd,2007 28. AvoidDependingonunqualifiedfriendsorfamily.Presentingonemantheory.Failingtoattractaknowledgeableboardofdirectors.Assumeprevioussuccessinotherindustryappliestoyourcurrentindustry. i d CenterforEntrepreneurialLeadershipFebruary3rd,2007 29. CenterforEntrepreneurialLeadership February3rd,2007 30. Whatisit?Itisnotaboutshuttingdownyourbusinessratherexitingitgracefully.Al i l d Alsoincludesastrategyforinvestorstocashout. f i h CenterforEntrepreneurialLeadershipFebruary3rd,2007 31. DevelopinganExitStrategyAsk: Whyareyougettingintothebusiness?y y g g Doyouseeyourselfrunningthebusiness20yearsfromnow? Areyouinitforbigmoneyorasteadilygrowingfamilybusiness? Whoaretheinvestorsinyourbusiness? CenterforEntrepreneurialLeadership February3rd,2007 32. SampleExitStrategyNikeManeuverMerger/AcquisitionBuyoutbyapartnerInitialPublicOfferingFranchisingyourbusinessFamilyHandover CenterforEntrepreneurialLeadership February3rd,2007