Components of an Effective Business Plan

Executive Summary

The executive summary is the opportunity to emphasize the key issues presented in the plan. If it does not pass the "looks interesting" screen, the potential investor will stop reading. More often than not, investors do not get past the Executive Summary of the plans they receive. Investors receive hundreds of business plans from which they must identify only a very limited number of opportunities. Focus on the company's distinctive attributes, the factors that will make this company successful in a competitive market.

Tell a simple but engaging story of why this is the right solution for a specific problem, with the best strategy, and why this management team can execute a thoughtful strategy to make it a winner. Develop a short, non-technical and understandable summary description of the technology.The investor needs to understand what is in it for him. How are you going to make money for the investor?

The Executive Summary should be short and provide the reader with a succinct overview of the entire business plan. Hold the reader's attention right from the beginning or he/she will go on to the next proposal.