Startup Business Plan – Executive Summary Section

Hi I’m Kathy. thanks for watching the final video in
the Working for Wonka how to write a business plan series. In this video are going to go over the
executive summary, which you know from earlier videos is the
first section your business plan, but the last section you should write. And that’s because it’s the synthesizing all
the sections and your business plan condensed into some some easily digestible easily understood nuggets. So, I want you to think of this as as similar to when someone pitches a
movie in hollywood. they would write what’s called a movie treatment one maybe two pages, it’s basically a matter paragraphs they have take that into the
studio and pitch the entire idea for a film, so
think about that it’s an hour and a half or two hour movie with multiple plot twists and turns, with characters that all have character arcs. And you know the writer of that movie thinks every one of those plots and arcs is very important. But they all get
weeded out and just the key, strategic, element in
that movie go into the movie treatment. think of your executive summary as the movie treatment for your business
pla. So what’s going to go into it? You’re gonna cover your business
description, position in market accomplishments to date, financial
highlights, and future milestones. Now that may already be sounding to you like
it’s way too much information to cover in a page or a page and a half. But it’s
really not, because the backup for that information you’ve already written out in the other sections of your plan. so let’s start with the business description. You’re going to take a little bit from the business description you’ve already written. And you’regonna answer kind of the who what how of what this business is all about. For example, we’re going tp stay with the how to build a better mousetrap example and for HBBM, they’re business description in the executive summary might read something like this: how to build a better mousetrap
inc, is a consumer product company launched by successful entrepreneurs and retail veterans Tom and Jerry. HBBM’s
goal is to redefine the mousetrap industry by expanding the distribution
into non-traditional channels trade and by bringing a new category
consumer to the table. and now we’ve hit something as basic
as we’re a consumer products company which we don’t outline really anyplace else
plan, that’s really what you need you want the bare-bones facts we’re a consumer products company that’s going to bring new products into the category and we’re being run by my two entrepreneurs with that have a successful track record. That paragraph is enough. Next you’re going to define your position in the market now position in the market really is
what makes you different than other competitors if you’re already in the market you could say your actual
position you’re number one, in your going to be your number one plus, once you finish this next year. For HBBM,
this might look like this: the mousetrap industry is a growth
industry that has been dominated by two key manufacturers who compete mainly on price HBBM is the first company to introduce a
high-end line of products. By introducing a luxury price point, HBBM brings retailers more category variety
and higher margins. HBBM also believes it will bring a new
consumers market. So, two things happened here; one, we have defined the market size – we said it’s a growth industry.
You could drop actual numbers in there, there’s a $20 million dollar industry with a consistent, 3 percent year over year
growth, if you wanted to. You don’t need to get much more detailed
than that. our position in the market… well, we’re a new company, so we’re not in that market yet, but we plan to position ourselves within the competitors as the first high-end luxury item. Follow that with your accomplishments to date. Now the accomplishments are in a very
dramatically depending on what type company you have, and where you are in a
company’s lifecycle. It could be that you’ve just launched a new
product. It might be that you have a new line of products you have new geographic distribution, new distribution
myabe you’ve changed manufacturing….It could be any number of things. Here’s an example of how it might look for HBBM: Since it’s launch six months ago HBBM
and has identified key vendors and negotiated exclusive relationships with these vendors. we’ve secured pattons on all parts of the mousetrap to define your unique
selling proposition would also closed the sale with our first
retailer Cats R Us, securing endcap placement and two
promotional windows. So, that really is a hodge podge of accomplishments but it’s a fine look at
what a new company might have.
we’ve got our manufacturing we’ve got our vendors in place ( ) exclusive relationships with them. we
secured patents and we’ve also got our first deal. your accomplishments to date are going to be
very specific to your business I’m just trying to you a little bit of a look of
what it might be based on the other things we put in our
marketing plan. financial highlights will be very specific to your business. maybe I would want to put for HBBM what that first sale is and what are expected margins will be.
financial highlights might be the loan that you’ve secured and it might be terms, better terms that
you’ve negotiated with a vendor. it might be margin growth
year over year. I’m not going to give you an example of this because financial
highlights are, financial highlights. whatever it is that’s good about your company should go into a short paragraph in
this section. and then last is your milestones so what is it that you’re going to be
doing over this next year? this business plan is the plan for the next year, or for the next three years. most likely just for the next year are you launching new products, are you
securing x number of vendors, are you expanding into new countries what are you gonna do over the next year. an example of what
that might look like for HBBM is HBBM plans to have national
distribution by spring 2012, so I would be assuming then that you’re only maybe in the northeast and so by the end of spring 2012 you’ll
be national. in the fall 2012 we’ll be introducing a first-ever mousetrap that
seasons cooks and serves rodents after trapping. this patented technology is set for approval
by the FFDA that’s the feline federal department of agriculture by summer 2011 with the addition this never-before-seen
technology HBBM is poised to reach the two million dollar milestone by the 2012 holiday selling season. very clear milestones, we expect to have
a new patent we then expect to have a new product launch, and that’s going to
give us an expected revenue of blah. that’s what you should be writing for your own
executive summary to help you stay on track. these milestones in the goals as
you’re looking for you can also put my options that you had
just reached if you wanted, in this area. if you’re
writing this plan for investors, your future milestones are particularly
important. and that’s your whole executive summary as you can see it really is it’s those
4-5 points, a paragraph each, and that paragraph shouldn’t be page of a paragraph, it’s a few sentences in each paragraph. just knocking down, nailing the nailing the
points, and you’re done. No only are you done it with the executive
summary, you are done with your business plan. congratulations
its been an enormous amount of work. I know. give yourself a big ole pat on the
back then get back to work! thanks for
watching the working for wonka how to write a business plan series. if
you have any questions on anything you’ve seen log on to go to the contact section and shoot me an email, I’m happy to answer it.
thanks good luck with your plans!

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14 thoughts on “Startup Business Plan – Executive Summary Section

  1. Thank you very much Kathy– I really appreciate the time and effort you put into educating me.
    I will keep in touch, and send you a progress report on my success

  2. Hello Kathy. Thank you so much for such a fantastic explanation of writing an executive summary! I was in the final stage of my final capstone course of my bachelor of business program and found myself complete stuck on the executive summary portion with less than 24 hours till deadline. Your tutorial was the best simple explanation I found, so I wanted to thank you for your efforts.

  3. Great video! But unfortunately the links in the description are dead 🙁
    I don't know if Kathy can update them.. it'd be appreciated!

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