Startup Business Plan-Exec Summary & Business Description

hi it’s Kathy, thanks for checking out the
second video in the Working for Wonka how to write a business plan series. in this video we’re going to talk about
the executive summary and the business description however as far as the Executive Summary is concerned, all I wanna say is this, it’s the first
section of your business plan but it’s the last thing that you should
write. you may think you know what’s going into this document, but honestly, until you
go through the process of researching and writing your
business plan, you really don’t know. Some of your key business assumptions may change before you’re done with this document. so, for right now as far as the executive summary is concerned hold your horses. figuratively and
literally if you happen to have them. we’ll get to that section later. We’re going to start with the business description. now, before you write your business
description, think about this: your business plan is not a sales document. it shouldn’t sound
salesy. your claim shouldn’t be grandiose. even if you are writing this document
because you’re trying to sell the company, quite frankly, or because you’re
trying to secure financing, if the language sounds too pie in the
sky, the readers of the document are going to think it’s too good to be true, they’re going to question your assumptions and your data. so we’re going to take a lesson from an Joe Friday and Dragnet, and say as you write this document, keep telling
yourself “just the facts ma’am.” Or, to be really cliche, I’m going to say keep it real. and do me a favor, if you don’t know who Joe Friday, and Dragnet is, keep that to yourself, cuz you make the
rest of us feel old. so, how do you write your business
description? Think of it as an expanded elevator pitch. just like
when someone steps off of that elevator, they should know about you, who you are,
what you do, what makes you unique at what you do, and
where you think your going… That’s exactly what you want your business
description to do. It’s going to be slightly longer than an elevator
pitch, but actually not much longer. you’re gonna do this by answering the
questions Who, What, Where, How and I’m gonna to say With Whom. We’re just not going to answer them in that exact order. W’er going to start with
the What. And this is gonna feel a little dry. but your first paragraph need
to say the basic facts. What’s the name of the company? what industry are you playing in with your product or service? what’s your legal structure, meaning how
are you incorporated or not incorporated? and how long have you been in business?
now, you may have been in business for three years and you’ve never written a
business plan. you know what, that’s fine. In fact it would not be uncommon if you work for an entrepreneur. the fact that you’ve been in business
for three years is actually going to be good thing because that means you’ve got and historical
data that we can include a look at later in the document. So if you’ve been in business be sure you include that. now as I said, this first paragraph is going to feel a little dry. But keep in mind you’re not writing great prose, you’re writing a business plan. just the facts. follow the What with the who. Now in this is your
opportunity to kind of stroke your entrepreneur’s ego a little bit. you wanna
say who founded this company, and what makes them a rockstar. what’s
their strength? what are they bringing to the party that makes them the right person to found
this company? now you may work for an
entrepreneur who founded three companies and they’ve all failed miserably. that’s fine. and again, wouldn’t be
surprising for an entrepreneur. but they’re something that the entrepreneur is doing right that allowed them to found three or four companies. you need to tap into that strength.
hopefully you know what that strength is. maybe they’re a product development genius. or they’re a sales genius. whatever it is, you wanna put that in this section. this
is not the section for a complete in bio. we don’t need to know everything your
entrepreneur has done it since they were born. we’re looking at their top line strength
and how it relates to this company. an example of that might be successful entrepreneurs Tom and Jerry
bring vast experience to how to build a better mousetrap. well-known for his product development savvy, tom has launched, and ultimately sold,
multiple business ventures in the rodent confinement industry. entrepreneur jerry who’s best known for
being fast on his feet and a skilled salesman, has been at tom side for decades, serving
as product tester and read it recruiter. of course, that’s kinda silly. but all I’m
trying to say is we’re highlighting what the main strengths are that relate to this business. you’re
also going to list what the partnership details are. and if there are any other employees the
company that haven’t equity stake. Follow the Who with the Where. Where are you trying to go with this company? if you work for the kind of company that has a mission statement you want to include it here. I find a bit
corny myself, but this woudl be the place for them if you have one. you also want to call out what your short- and long-term goals are. now, one or both, of these should be a
financial goal. but other goals might be geographic goal, a distribution goal, maybe a product development goal. your long term goal at a minimum, should probably have a
financial component to it, and it also may be the exit strategy for the company. Follow the Where, with the How. how do you plan on getting there? this is where you’re going to give a
brief description of your product or service and your business model, and explain what
about one or both and those gives you a strategic advantage in your
industry. here’s an example and what that might
look like: the luxury accommodations provided by the how to build a better
mousetrap mousetrap allows us to target an
untapped consumer base- mice. because this HBBM Inc can forge new distribution avenues
previously untapped by other rodent confinement manufactures. now again, this is kinda silly. but what we’re showing here is that our
strategic advantage is that our products has a unique
benefit that allows us to sell in channels of trade that haven’t been tapped for this product line. And allows us to sell to
a whole new group and consumers that would be unusual for this type of
product. follow the How with the Who. Who’s
joining you on this road trip? this would be any strategic
relationships, key vendors that you may be working with, if you’ve been in business for a while, and maybe have an exclusive retailer, or buyer. that a definite
strategic advantage you want to include that. if you’re working with some Rockstar
legal or financial partners maybe give them a sentence each. and then you also want to include
key management bios. and I mean only keep key management, not your whole company. all you’re trying to do is say that you
were smart enough to gather a team a badasses to help you
get where you’re wanting to go. again just paragraph on each, full bios
come later. but what that might look like is: our
head of procurement Attila the Hun, brings decades of
experienced robbing and pillaging. he’s best known for his successful
invasion of and I would complete that sentence
but it would require me to Google Attila the Hun and quite frankly I just
didn’t have time. and that’s it. you want to answer the
question what who where how and with whom, and you’re
done with your business description. now some people make the business description 10 pages long. you really don’t need to. if you can
answer these questions succinctly, in a paragraph each, you’ve done your job
move on to the next section. speaking at moving on to the next
section, our next video is on your product or service description. thanks for watching the Working for Wonka, how to write a business plan series. for more information on Working for
Wonka or how to write a business plan, check out I
look forward to helping you survive the entrepreneur boss thanks

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9 thoughts on “Startup Business Plan-Exec Summary & Business Description

  1. Thanks! I've just added a link in the video description to my blog where you can find free startup business plan templates and other videos. Good luck with your business plan.

  2. This is absolutely outstanding. I have viewed many videos and many online business plan templates, and your series of videos just blows them all away. I cant thank you enough.

  3. In the Who & With Whom sections you had mentioned 'partnership'.Which one involves internal partnership and which one external ?Kindly keep in mind,I am writing for a L.L.C

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