ENTREPRENEURSHIP-1

LESSON OUTLINE (Fourth Quarter)

Lesson 1: Writing Executive Summary

OBJECTIVES:
1. Define what Executive Summary is;
2. Analyze the formula in creating an Executive Summary in Business Plan; and
3. Appreciate the purpose of Executive summary in Business Plan.

EXECUTIVE SUMMARY
A business plan's executive summary is a high-level synopsis. Its aim is to save readers time and
prepare them again for upcoming content by summarizing the main points of a text.

The executive summary is also referred to as the most critical aspect of the business plan and if it fails
to catch the reader's interest, the plan would be tossed aside unread - a tragedy if you have written
your business plan to raise funds to launch your new venture.

THE FORMULA FOR AN EFFECTIVE EXECUTIVE SUMMARY IN 5 PARAGRAPHS

An executive summary can be broken down into five paragraphs to make it more effective.

Paragraph 1: Provide a summary of the company.

As previously discussed, having a quote or statistic in the first paragraph of your executive summary
will help your readers think along the lines you want them to.

In this first paragraph, you should also include the name and existence of your business, as well as
any pertinent industry information.

Paragraph 2: Discuss the target market, competition, and marketing plan.

The second paragraph should provide a straightforward and succinct overview of your target market
as well as the need or pressure point that your company would attempt to address.

Next, describe your industry's competitive environment and the competitive advantage that your
company has. Your marketing strategy should be focused on three key methods of reaching out to
your target market. Focusing on only the three most important aspects of your marketing campaign
can ensure accuracy and pique your readers' interest in learning more about the rest of your strategy.

Paragraph 3: Provide an outline of organizational highlights.

The third paragraph of your executive summary should include organizational details such as where
your company's offices will be, whether you'll incorporate or operate as a sole proprietor, and whether
you'll be a brick and mortar or online corporation.

Paragraph 4: Show forecasting

Make revenue forecasting forecasts for the first and second years after the business plan is
implemented. Calculate your break-even point and tell your viewers when you expect to break even.

Paragraph 5: Describe your investment requirements in detail.

If your company requires funding, this is where you can go into the specifics of your investment
requirements. This number should be straightforward and consistent with your estimates from the
previous paragraph.
According to thebalancesmb.com, A typical executive summary for a startup company includes the
following sections:

✓ The business opportunity - describe the need or the opportunity.

✓ Taking advantage of the opportunity - explain how your business will serve the market.
✓ The target market - describe the customer base you will be targeting.
✓ Business model - describe your products or services and what will make them appealing to the
target market.
✓ Marketing and sales strategy - briefly outline your plans for marketing your products/services.
✓ The competition - describe your competition and your strategy for getting market share. What is
your competitive advantage, e.g. what will you offer to customers that your competitors cannot?
✓ Financial analysis - summarize the financial plan including projections for at least the next three
years.
✓ Owners/Staff - describe the owners and the key staff members and the expertise they bring to the
venture.
✓ Implementation plan - outline the schedule for taking your business from the planning stage to
opening your doors.

For established businesses, the executive summary typically includes information about
achievements, growth plans, etc. A typical executive summary outline for an established business
includes:

✓ Mission Statement – Articulates the purpose of your business. In a few sentences describe what
your company does and your core values and business philosophy.
✓ Company Information – Give a brief history of your company - describe your products and/or
services, when and where it was formed, who the owners and key employees are, statistics such as
the number of employees, business locations, etc.
✓ Business Highlights – describe the evolution of the business - how it has grown, including year-
over-year revenue increases, profitability, increases in market share, number of customers, etc.
✓ Financial Summary – if the purpose of updating the business plan is to seek additional financing
for expansion, then give a brief financial summary.
✓ Future Goals – describe your goals for the business. If you are seeking financing explain how
additional funding will be used to expand the business or otherwise increase profits
Activities:
Activity I: Conceptualize a business about your specialization in TVE and complete the questions
below: (1 whole sheet of paper)

A. Name of your business:

_____________________________________________________

B. Draw your Logo:

C. Product/Service Offered:

______________________________________________________

D. Form of Business:

______________________________________________________

Activity II: From the activity I, write an executive summary using this formula: (back part of the paper)

- Paragraph 1: Provide a summary of the company.

- Paragraph 2: Discuss the target market, competition, and marketing plan.
- Paragraph 3: Provide an outline of organizational highlights.
- Paragraph 4: Show forecasting
- Paragraph 5: Describe your investment requirements in detail.