The executive summary is the first, and often only, part of your business plan that potential investors will read. Treat it as a living document, constantly refining and rewriting it until it’s a concise, impactful representation of your entire plan. It’s your shop window, designed to draw investors in. Prioritize clarity and brevity. Use three words instead of five, and be direct rather than vague.
Begin with a focused paragraph dedicated to each key aspect of your business plan, eliminating any repetition. Clearly articulate what your business does, who does it, why it does it, how it generates revenue, and your funding requirements, including your repayment or exit strategy. Precision is paramount.
Knowing when to conclude your business plan is critical. While a comprehensive document is valuable for internal purposes, external investors can be turned off by excessive length. Many find overly long plans tedious. Conversely, a plan that’s too brief can suggest insufficient research or thought, leaving investors with too little information to make a sound decision. Uncertainty breeds doubt, which is detrimental to securing investment.
Aim for a “just right” length, typically between 12 and 25 pages. This demonstrates thoroughness without overwhelming the reader.
Crucially, demonstrate market need, not just your own ambition. Show evidence of market research and a deep understanding of your target niche or subsector. Avoid broad, irrelevant market statistics. For instance, the global car market is vast, but irrelevant if you’re launching a local hand car wash. Focus on the customer’s reality and their specific needs. Don’t assume investors understand the market; clearly articulate how your product or service fulfills a genuine need or desire. Explain how customers will discover you and how frequently they will require your offering. Understanding these buy cycles is essential for projecting realistic demand.