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Written Business Plans: The Purpose of
a Summary Statement
Picture this. You get committed to writing
a business plan-either for furthering your existing company
or for a new venture. You shut your office door, put out a "Do
Not Disturb" notice and sit down at your desk to put into words
the ideas and plans you have racing through your head. With
the business plan outline in front of you, you begin hammering
away on the first item…the Summary Statement. Hum, is there
anything wrong here?
The purpose of the Summary Statement of
a Business Plan is to provide a very clear and concise summary
of your business. From a brief look at your long-term mission
to the funds you are seeking (in the case of those in search
of capital), the Summary Statement is the most crucial element
of your business plan. It is the first offensive of the game,
chosen and stated very strategically following a thorough analysis
of all the players and competition, your product/service, strengths
and weaknesses, goals, marketing strategies, and financial needs.
And in order for the Summary Statement to accurately reflect
the business plan as a whole, it is always the last element
that you prepare.
The Summary Statement is the most often
reviewed and critically looked at portion of the business plan.
It reflects the thoroughness of your planning efforts and it
drives others to consider your points further by their review
of the entire business plan, or not. For those seeking venture
capital, it can make or break the prospect of a successful campaign.
In an existing company where the plan is the measure and guide
for what you look to accomplish and by-when, the effectiveness
of the summary statement can mean the "buying into" of the plan
by your team, or not. Which is why it is important for the Summary
Statement to convey:
- That the startup plan/ongoing business
plan, at its root makes sense.
- That the company as a whole is well grounded
and managed.
- That the management is capable of seeing
this plan through successfully.
- That the market has been thoroughly and
thoughtfully analyzed.
- That you bring to the market clear-cut
competitive advantages.
- That the financial analysis and need
projection is thorough and realistic.
- In the case of an investor or lender
situation, that your venture/plan is a minimal loss risk.
When preparing the
Summary Statement of your business plan you should also
consider the following:
- It should be easily read in 5 minutes;
no more than two to three pages in length.
- The use of bulleted points makes it less
intimidating.
- Consider who your potential readers are
(bank officer, venture capitalist, division president, etc.)
and what hot points are likely to "light them up" and organize
the Summary Statement so that those points are given priority.
- Avoid hype; stick to facts and well-conceived
strategies to build interest and motivate the reader.
In the end, a well conceived business plan
and carefully crafted Summary Statement could be the key to
opening the door of possibilities around your business plan
as a whole. So take your time, do your homework, and have FUN!
Remember: your investor/banker/partner/manager wants to know
that you can do it and that you believe you can do it, and your
doing so will ultimately shine through in your business plan.
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