The document provides guidance on writing executive summaries for business plans. It recommends that executive summaries be 2-3 pages and cover the essential elements of the business including the product/service, business concept, company description, and mission statement. The summary should also briefly describe the market analysis, financial projections, management team, and risks and opportunities for the business. An effective executive summary concisely communicates the most important aspects of the business plan to potential investors.

1. Center for Entrepreneurial Leadership February 3rd , 2007

2. What is it?
Brief summary of all the sections of the B‐Plan
Also includes important financial numbers
Center for Entrepreneurial Leadership February 3rd , 2007

3. Why?
Executive summaries are also usually the first things
read and analyzed by potential investors
So, it's a very important part of your plan
Center for Entrepreneurial Leadership February 3rd , 2007

4. More importantly
It’s the first step of any B‐Plan competition
Center for Entrepreneurial Leadership February 3rd , 2007

5. Cover Page & Length
Cover Page shouldn't be cluttered
Include only essentials like
Company Name
Team Members
L
Logo with Tag line
ith T li
2‐3 pages, excluding the cover page
2 3 pages excluding the cover page
Center for Entrepreneurial Leadership February 3rd , 2007

6. It should start with,
Product / Service Description
Business Concept and Description of the Opportunity
Company Description
Mission Statement
Center for Entrepreneurial Leadership February 3rd , 2007

7. Center for Entrepreneurial Leadership February 3rd , 2007

8. What and Why?
Market = The world of commercial activity where
goods and services are bought and sold.
Therefore, Market Analysis deals with the various
Th f M k A l i d l i h h i
aspects of the market which the reviewer may or may
not be familiar with.
not be familiar with
And Why?
Center for Entrepreneurial Leadership February 3rd , 2007

9. Market analysis consists
It should enable you to identify target customers, their
expectations, income levels, expenditure, your
distribution strategies etc
distribution strategies, etc.
It should be based on facts like surveys and established
data
Center for Entrepreneurial Leadership February 3rd , 2007

10. Center for Entrepreneurial Leadership February 3rd , 2007

11. How?
Document current strategy of each primary
competitor‐Spy on them!!
Sources‐
S
Public Information
Market research project
Newspaper reports, catalogs, interviews
with distributors
Else, go GOOGLE‐ing!!!
Center for Entrepreneurial Leadership February 3rd , 2007

12. Contd.
SWOT( Strengths Weaknesses Opportunities & Threats) Analysis
of each competitor
Are you filling a void in the Market?
Formulate the market strategy.
Center for Entrepreneurial Leadership February 3rd , 2007

13. In the Ex‐Sum…
You can write a few lines about your market which you
would have learnt from your Market Analysis
It is a good idea to use Visual aids like Figures and Graphs
for the above purpose
It is recommended to mention the source of surveys and
data
You should also write about your Market Strategy
Center for Entrepreneurial Leadership February 3rd , 2007

14. Center for Entrepreneurial Leadership February 3rd , 2007

15. Financials – Why do we need one?
Assessment
Confirmation
Quantification
Calculation
Budgeting
Center for Entrepreneurial Leadership February 3rd , 2007

16. Components
Financials
Income Balance
Assumptions Cash Flow
Statement Sheet
Center for Entrepreneurial Leadership February 3rd , 2007

17. Assumptions
Always specify assumptions in financials
Valid assumptions such as
Rate of revenue exchange
Depreciation Rate
Seasonal Trends
Royalty etc…
y y
Center for Entrepreneurial Leadership February 3rd , 2007

18. Cash Flow
Transfer of money in and out of the enterprise
Can be calculated as:
cash + source of revenue – expenses – capital
h f i l
Avoid:
Unrealistic Assumptions
Underestimation of Needs
Center for Entrepreneurial Leadership February 3rd , 2007

19. Income Statement
How good the company is at making money.
Include
Sales Revenue
Sales Costs
Gross Profit
Operating Expenses
Operating Income
p g
Net Income
Center for Entrepreneurial Leadership February 3rd , 2007

20. Balance Sheet
What the company owns and owes.
The main formula is:
assets = liabilities + shareholders’ equity
li bili i h h ld ’ i
To create a balance
Know your assets
Learn different liabilities
Shareholder’s Equity
q y
Center for Entrepreneurial Leadership February 3rd , 2007

22. Center for Entrepreneurial Leadership February 3rd , 2007

23. Wikipedia says:
Risk analysis is a technique to identify and assess
factors that may jeopardize the success of a project or
achieving a goal.
g g
Center for Entrepreneurial Leadership February 3rd , 2007

24. Analyze…
Conduct a business risk assessment against each
business function.
Eliminate non‐critical business processes from a
contingency planning project.
l
List and prioritize business functions that require a
contingency plan.
contingency plan
Revise contingency planning project tasks to reflect
the new priorities.
Manage the identified risks as part of operational
management practices.
Center for Entrepreneurial Leadership February 3rd , 2007

25. Assess…
Economic/Financial
Legal
Operational
Marketing
Growth
Center for Entrepreneurial Leadership February 3rd , 2007

26. Continued…
Determine the criticality of a process to your business.
Assess the failure probability/risk criticality score.
Develop a contingency plan based on the score.
Center for Entrepreneurial Leadership February 3rd , 2007

27. Center for Entrepreneurial Leadership February 3rd , 2007

28. To some it is THE critical factor.
Include
Personal Details
P l D il
Field of Expertise
Title of Position
Previous Experience
Previous Success
Education
Specific Skills
Center for Entrepreneurial Leadership February 3rd , 2007

29. Avoid
Depending on unqualified friends or family.
Presenting ‘one‐man theory’.
Failing to attract a knowledgeable board of directors.
Assume previous success in other industry applies to
your current industry.
i d
Center for Entrepreneurial Leadership February 3rd , 2007

30. Center for Entrepreneurial Leadership February 3rd , 2007

31. What is it?
It is not about shutting down your business rather
exiting it gracefully.
Al i l d
Also includes a strategy for investors to cash out.
f i h
Center for Entrepreneurial Leadership February 3rd , 2007

32. Developing an Exit Strategy
Ask:
Why are you getting into the business?
y y g g
Do you see yourself running the business 20 years from
now?
Are you in it for big money or a steadily growing family
business?
Who are the investors in your business?
Center for Entrepreneurial Leadership February 3rd , 2007

33. Sample Exit Strategy
Nike Maneuver
Merger/Acquisition
Buyout by a partner
Initial Public Offering
Franchising your business
Family Handover
Center for Entrepreneurial Leadership February 3rd , 2007