Executive Summary in a business plan
An executive summary is a short write up about you business with an optimistic overview. This summary must positively project your business and intrigue a reader to learn more about your business. This is the first section of the business plan and this is the opportunity for you to make a first impression.
High Level Summary
In this section you will explain about your business. You will talk about your short term and long term business goals. You will talk about your financial goals such as the profit you are planning to make after 1 year. You will talk about how much money you need to start and share the source of funding. You can say how much you are investing from your side. If you are not investing from your side then explain why you are not investing yourself.
Explain you business name
What is your business called and what is the meaning of this name. Say your name is Sophiea Brian and your business is selling baby nappies. You company name is SoftyNappy. The tag line is “a Sophi creation”.
Why you choose this business name
You can explain why you choose this name. Maybe you have a new patented design for your nappy called Softy. Your nappies are soft and hence you call them Softy and the company selling them is called SoftyNappy. The name Softy rhymes with Sophi which is your nickname and hence the name SoftyNappy has a tag name a Sophi creation. This is just an example but you need to have a name that goes well with your business intentions.
What is the type of business
There are 3 major ownership structures for a business. You are a sole trader or proprietorship if your business is run and owned by an individual. When there is an association between two or more people in your business seeking a profit then it is called a general partnership. If you are a shareholder in your business and the ownership of your business is divided up into equal parts called shares then your business is a limited company. Your limited company can be further classified as private limited company or public limited company.
Why have to chosen this business structure
In case of the SoftyNappy, being a sole trader you make your own decision and keep all the profit. You wanted to reinvest maximum profit into growing your business and you do not want others intervening. You know your business very well and you do not need any help in running the business better.
Being in a partnership you share expertise, responsibility and profit. You are a creator and not a financial expert. You are the creative designer of your business and your partner takes care of the financial part of your business. Both of you share the profit in your partnership business structure.
Your business has a very good potential to scale and will need more funding in the future. You are considering a private limited company to have limited liability. You are ok with the fact that your company will be a separate entity having its own assets, profits and liability.
What you are selling
You have to explain why you are selling and possibly more details about the item and its uniqueness. In the case of SoftyNappy you are planning to sell Nappy made of organic bamboo cotton material with outer waterproof TPU coating to avoid leaking. You could further explain any distinctions in the item you are selling.
SoftyNappy is Compliance with the WHO´s Good Manufacturing Practices (GMP) and is approved by EDANA Guideline for the testing of baby diapers.
To whom you are going to sell
Initially you are planning to sell to parents and parents tobe. You are setting up the brand online and slowly you are planning to move to super markets and other child speciality stores.
Where are you going to sell
Your target market is in the UK mainland and initially you are starting off with an online ecommerce store.