This section summarizes your business plan. It should clearly answer the following from the investors' viewpoint:
- Who? What? Why? How?
- Is this the type of business in which I want to invest?
- Will it provide the return on investment for which I'm looking?
The executive summary should contain the following sections : 1. The company & founders
- Form or structure of the entity which is asking for the money (individual, partnership, company etc.)
- The strategic directions of the company and the goals & objectives it wishes to achieve in the next 3 to 5 years
- Milestones over the investment horizon
2. The market opportunity
- Product/ business venture being proposed, and the size & expected growth rate
- Market analysis, growth rate and segmentation
- Critical success factors and why you are going to succeed; unique strengths and capabilities
3. Financial requirements & uses
- What is the total funds requirement?
- What are you going to spend the money on?
- When do you need the money?
- What is your contribution to the project?
4. Summary projected financials
- The key financial numbers of your business, like - revenues, earnings, capital expenditure, cash generation and uses, should be presented in this sub section.
5. Summary of risks and the risk reduction strategy 6. Returns the investor can expect
- The returns that the investor can make by investing in your business should be clearly spelt out. The maximum, minimum and the likely returns he can expect to make should be specified. The impact ("sensitivity analysis") of
the risks on the returns should be measured and detailed.
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