Hello All! I'm hoping someone out there in 'net land can help me.

I am at the last stage of my business plan. I am seeing the lender at the end of the month, and want to get it to my advisor at the sbdc before i go for a last run through.

For the life of me, I cannot think of what to write for the Executive Summary!

For those of you who don't know....

I am opening a dessert only bakery/cafe based on ALL THINGS CHEESECAKE. It is supposed to be "romantic, comfortable and enticing".

I hope that is enough for all your brains out there to point me in the right direction!

Thanks a bunch!!

Lisa

http://www.allthingscheesecake.com

Save the Earth! It's the only planet with cheesecake!

Lisa, you've made such tremendous headway with your busines (I've been watching your progress here). And now you're stuck with the most important part of the business plan??? No pressure huh?

Seriously, the Executive Summary can make or break the entire plan because it is the first thing the reader sees. It is the most important part because it is the first impression the lender will get of your business and of your plan for the business and plan for the funds. I'm sure I'm not telling you something you don't already know. From my discussions with loan offers and SBA reps they rely heavily on the Executive Summary to concince them to take the rest of the plan seriously. Some make up their minds by the executive summary and only read bits and peices of the rest of it. Can you imagine? You work so long and hard and they don't even bother reading all of it. Why? Because they weren't convinced right from the get go.

So, having said all that and likely made you a nervous wreck (not my intention at all)....The executive summary is just that. A summary. A summary of everything else you've written. It needn't be more than a page or two encompassing in a few concise paragraphs everything else in the plan. What is the business? Why is it needed? What makes it so special? Do you need funding? How much and what will it be used for (no details here)? What is your marketing plan in a nutshell? Mention the competition and how you are different/better. Why will your customers love you? Why do they need you?

The trick to capturing the reader's attention is in the wording. Write in an exciting, convincing voice and keep it short.

I hope this helped somewhat.

http://smallbusinessstartup.biz/plan/

Sylvia
http://businessplanmentor.com
Business plan and start up resources

Lisa: Here's a pasting of a chapter from my book "How To Write Your Own Professional Business Plan". It should help you get through the critically important Executive Summary. By the way you were smart in holding it till last. Most people want to start with it and you really can create a good one until you know what the rest of the plan says.

Hope this helps.
Kent Capener
Capener Consulting, LLC
http://www.capenerconsulting.com

The Executive Summary

Here?s your chance to make the first impression of your business. As in person, you only have one chance to make that first impression. Therefore, it is incumbent on you to prepare your summary carefully.

You must also understand that your Executive Summary should never be finished. You may send off one version, then do another, then another, and then even another, etc. As the situation or conditions in which you do business or want to do business change, so too your Executive Summary must change.

What elements should compel changes? Any change in any significant element of your business that either affects your plan either positively or negatively. Specific examples could include but are not limited to, upward or downward changes in the overall economy, entrance of significant competition, changes in your product or service, changes in pricing or costs, changes in management, changes in your financial condition, appearance of new opportunities or risks, or any other element, thing, situation, or environment that has consequences on the reader?s understanding of your business.

Don?t concern yourself with the length of the Executive Summary. If it takes four, five or eight pages instead of the commonly recommended two, so be it. Avoid the use of negative terminology, jargon, or and most especially poor grammar or spelling. Do not assume that the reader knows anything about anything relating to your business.

Do concern yourself with being succinct, concise, affirmative, and staying on point. Start with a general statement of the goal of your plan, i.e. ABC Company, Inc., seeks $100,000 in debt funding to ? ABC will repay the debt from the operations detailed in this business plan. Or, if you?re seeking equity, i.e. ABC Company, Inc., seeks $100,000 in equity investment in exchange for _____________ and will generate profits from the operations detailed in this business plan. What goes in the blank is part of your proposed transaction (See More Stuff Chapter). Generally one of the following will be used; stock, preferred stock, common stock, or convertible debentures.

What do you need to include in your Executive Summary? This list below cannot be definitive, as every business has unique elements. It should be used as a minimum, with deletions only if the information doesn?t apply to your business. You should add whatever helps makes the case for your business.

List of What To Do In The Executive Summary

Type of Business ? Retail, manufacturing, service, construction, distribution, wholesale or ? A simple descriptive sentence is sufficient, i.e. ABC provides carpet cleaning services, etc.

Products/Services ? If you haven?t already described what it is you do in the previous information detail your product or service from the perspective of its unique feature(s), ability to solve significant problems and most assuredly address major opportunities.

Business status ? Detail your situation, as in whether you are a start-up, expanding, buying another business etc. If you are not a startup describe the length of time you have been in business, i.e. ABC has operated for ____ years.

Goal of the Organization ? A one-sentence description of the goal of the plan is required. It is strongly recommend that this be worded as a positive in relation to whether you are seeking equity funding or debt funding. An example would be; ABC Company will reach a market penetration of ___% that will result in profits of $000,000 in year _____.

Form of Organization ? Describe what you are, i.e. Sole Proprietorship, Partnership, Corporation (and type), or Limited Liability Company.

Location ? Include more than just your physical street address. If you are in a business that is sensitive to location, detail the advantages that your location offers.

Target Market ? Be very succinct and detail who and what. You will go in to greater detail in another section of the plan.

Market Penetration ? Provide a specific market penetration percentage that you will obtain and the plan and strategy for entering the market, if you are a start-up. If you are expanding or buying a business, detail the increase in market penetration that will result from the successful implementation of your plan. Keep in mind that you are required to provide your justification for the percentage used here in another section of the plan.

Competition ? You must describe who your competition is, their strengths and weaknesses and the market share they enjoy. Keep in mind that you are required to provide your justification for this in another section of the plan.

Management ? What qualifications are required in the management of your company. Detail the current experience of management, including education and background. This must be detailed for the principals. If there is disparity between the needed qualifications and current management, make a statement regarding obtaining the necessary management as a milestone.

Present Ownership ? Disclose the actual ownership of the business. If you are acquiring a business then describe what the actual ownership will be.

Milestones ? Describe the time frame(s) for accomplishing specific milestones and goals and sub-goals (if required). Sub-goals should be detailed when there is a growth process or stepped growth as the goal of the plan. Another example would be when a facility needs to be constructed where detailed construction time frames affect the potential success of the plan.

Amount Sought ? Describe what you are seeking in either debt or equity funding or a combination if you are seeking both. Include a succinct statement that details the use of the proceeds from the capital ingestion. An example would be; ABC seeks debt financing of $000,000 to finish product development, originate initial distribution, marketing, and for working capital.

Return on Debt ? If you are seeking a loan detail the pay back period and method you are offering. Keep in mind that you are required to provide the bulk of the explanation of your ?proposed transaction? in its own section in the plan. Start with a factor of 140% of the loan amount to derive your payback amount. For example: A loan for $50,000, with payments of $850 per month for seven years and 10%, translates to eighty four payments of $850 equals $71,400 or 142.8% to be precise. This is a real example from a loan.

Return on Equity ? Detail what compensation you are offering investors and what you want their participation to be, i.e. shares, seat on the board, etc. How to determine what to offer in this situation is a major sub section of the proposed transaction chapter.

Investments to Date ? Detail what monies, time, sweat, in-kind donations, etc., have been achieved and who made them. Also detail any debts owed or equity shared.

Your Interest and Long-Term Objectives ? Interest means what you own of the company. Describe your long-term objectives for the business. Be succinct, but not imperious, i.e. ABC Company will be the largest ________ retailer in the tri-state area in five years.

Long Range Growth and Expansion Objectives -- If you are anything other than a sole proprietorship or a single member Limited Liability Company, you should take on the ?we? persona.

Strengths ? Be very specific and positive. Describe the strengths (if any) of management, personnel, unique product/service, source of supply, high margins etc. Sometimes our strengths aren?t known to us, so be careful here. If you determine in the rest of your plan that you can sell your thing for the same as your competition and your costs are say 20% and your competition?s costs are say 70% -- that is a significant and consequential strength. If you don?t know enough about your competition or industry to know that you have high margins, well, maybe a little more research on your part is required. Make sure your strengths are real.

Limitations on the Business ? Notice we did not use the term weaknesses here. Weakness is a negative word. Limitation is a word that connotes external influences that can be overcome. Describing how you will overcome the limitations is inherent in how you present them in the Executive Summary. Be specific, i.e. lack of available financing and the services of an experienced Chief Financial Officer limit ABC.

List of What Not To Do In The Executive Summary

Don?t be too wordy trying to be all-inclusive.

Don?t fail to identify the opportunity.

Don?t fail to clearly reflect what the business is all about.

Don?t fail to identify management?s objections and methods of achieving them.

Don?t fail to include a proper disclosure regarding stock. (see Formats)

Don?t fail to notify readers of any requirement for confidentiality.

Thanks Everyone! My creative juices are flowing once again and brain block has been lifted!

Kent: Thanks a million for the excerpt!

I'll let everyone know how it goes in a week or two! Wish me great lending luck!!

Lisa

http://www.allthingscheesecake.com

Save the Earth! It's the only planet with cheesecake!