Executive Summary Explained © Paul Wetton

By now you should know the importance of using a copywriter for the written materials for your business and also during the stage when you are seeking venture capital.  Let’s look at how a copywriter can help you with the Executive Summary.

The Executive Summary is a summary of the main points of your business plan.  This is your introductory document and you will use it to get your foot in the door with the venture capital firms.  Therefore it is important that it is written properly because it is the written equivalent of the “elevator speech,” when you have only a couple of minutes to summarize who you are and what you do.

If you are a new entrepreneur without a proven track record the executive summary should focus on the benefits of your business and not highlight the risks.  This document is 7-10 pages.  The first page should, in six paragraphs, summarize the basic facts about your business, such as the product, the technology, the stage of development, etc.   After the one page summary, you should explain your plan for growth and describe corporate goals. Why should the venture capitalist invest in your company?  Be sure to address that question.

The Executive Summary should also contain the following:

  • Describe your product or service. Show how it will generate revenues and profits. If you have copyrights or patents that are pending be sure to note this.
  • Contact information. Make it easy for the venture firm to reach you and provide e-mail addresses, phone numbers and fax number.
  • Describe your sales strategy and provide an overview of the marketplace and the competition. Everyone has competition so rather than deny this be bold and identify your competitors.
  • Management team. If you can’t hire an experienced CEO then you must show the other ways your business is prepared to face the challenges of your startup. Describe your management team. If you can’t hire people until you get funding you should state that but at least name the people who will be hired.
  • Non-management personnel. Name or describe key employees. Include brief bios of board members and directors.
  • Financials. Projections should be realistic, yet don’t be afraid to show some optimism.
  • Internet marketing strategy. Only a fool would ignore the Internet when it comes to promoting your business.

The Executive Summary should not discuss the terms you expect from the investment or how you want the venture capitalist to structure the deal because that can be off-putting and squelch the deal.   Let the VC firm make the first move.

The best way to get an audience for your Executive Summary is through networking because the average venture capitalist receives 1000 proposals a year.  Without a strong, convincing Executive Summary, your business plan won’t be read. It’s worth hiring a copywriter to write it for you.

The business plan and personal recommendations are the most important things the venture capitalist considers, but only after first reviewing your Executive Summary.