Step three: a summary of the business plan

The most important part of a business plan is the executive summary - a summary of the content of the entire document. It contains goals and objectives, planned indicators, the amount of start-up costs and the expected payback of the project. Potential investors often only read this part of the plan. If it doesn't make a positive impression, they lose interest in the project and don't invest in it. We will tell you about the rules for compiling a summary of a business plan and what information needs to be reflected in it.

What is a business plan summary and what is it for

The business plan is drawn up according to a certain structure. The details may vary, but the content of the plans is almost always the same. For example, let's take the requirements of the European Bank for Reconstruction and Development:

  • Title page.
  • Summary.
  • History of the company and description of current activities.
  • Financial condition and loans.
  • Investment plan of the project.
  • Description of the manufacturing process.
  • Financial valuation.
  • Environmental Assessment.
  • Schedules for obtaining loans and their repayment.
  • Equipment and work for which credit is required.
  • SWOT analysis.
  • The main risks and methods of overcoming them.

In this article, we will dwell on the summary in detail. This section is fundamentally important because it summarizes the entire content of the business plan. It is with him that investors and creditors first get acquainted. If the resume interests them, they will read the entire plan and, possibly, participate in the project. If the resume is weak and does not seem promising, investors will refuse further acquaintance with the project.

What is a business plan summary? This is a quick summary of the basic data of the business plan - goals, initial investment amount, expected ROI and results.

Large lenders regularly have to process a large flow of proposals to invest in a "promising" project. A business plan can take several tens of pages and it is physically impossible for investors to familiarize themselves with each of them. Often they are limited to reading the first page with general summaries of goals and numbers. Therefore, writing a resume is such a crucial stage - the success of the project with investors depends on its content.

The resume is also important for the author of the project: it is a short list of tasks that he must solve for the business to flourish, and the indicators that must be achieved for success.

Writing a resume is one of the most crucial stages in developing a business plan

Summary content

A resume is a "squeeze" of all the content of a business plan. It will summarize the findings and key indicators of each section.

What information is included in the business plan summary:

  • data on an entrepreneur or legal entity;
  • data on the project, its competitive advantages, prospects;
  • financial data - costs, expected income and payback.

Production and sale of business boards

Instructions on how to write the right business plan

A business plan is a document containing information about many aspects of the functioning of a business: information about a product, a company, a marketing company, and many others. Competent drawing up of a business plan will be a good start to any business, and will also help in strategic planning and management at all stages of the company's development.

What is a good business plan for?

The main purpose of developing a business plan is to create a document that will allow its authors to clearly and clearly state the essence of their project to potential partners and investors. Therefore, a business plan should not only have a competent analytical study, but also a marketing rationale that will convince you of the thoughtfulness and attractiveness of this project.

For the entrepreneur himself, a business plan is also necessary for:

  • Defining specific areas of activity
  • Identifying the target market segment
  • Formulating the strategic and tactical goals of the organization
  • Selecting the composition offered products and services
  • Identification of the necessary personnel and their working conditions
  • Development of marketing activities for market research, sales promotion, pricing
  • Assessment of the company's financial position and analysis of available resources

We draw up a business plan ourselves: design

  • Keep your project concise and compact. It is better to move all detailed and optional information outside the main text, namely in the appendices.
  • Display information visually. The project description must be presented not only in the form of paragraphs of text, but also using tables to reflect detailed numbers, diagrams for structure and graphs to identify trends.
  • Structure the project description. Highlight sections, and in them semantic subsections, if necessary. Bring the main ideas of each part of the business plan to the beginning (in the form of key points) or to the end (in the form of conclusions).
  • Use formatting. Highlight headings and important points in bold, set the same value for paragraph indents and line spacing. The most universal values: Times New Roman font, font size 12, justified alignment, line spacing 1.5, indent 1.5.

Section structure and examples

Each business plan is individual, so it can have a different structure and order of sections. It depends on the essence of the project itself and the issues that are key in it.

The following is the complete and most generic structure.

Instructions for the manufacture and sale of educational boards for children. Find out how to start a business with minimal capital. Equipment, customers and business calculations.

Preparing the Overview section of the business plan

Most business planners and representatives of financial institutions, whose decisions determine whether your project will receive investments, agree on one thing: the resume is the most important part of the project.

Often, whether your project will be invested depends on how interested potential investors or lenders are with the concept outlined in the resume.

That is why many experts advise to write the introductory part at the very end, when you have all the calculations and have a clear idea of ​​how exactly you plan to achieve your goals.

Therefore, we advise you to use the recommendations and return to this stage a little later (however, you can mark some ideas, thoughts, arguments right now).

So, let's develop a business plan according to the recommendations drawn up by the Federal Fund for Small Business Support.

The overview section begins with the name of the project.

  • Business plan for a car shop:
  • Business plan for the production of felt boots;
  • Business plan for an online store of goods for children.

In the next step, fill in the blanks in the text below:

Characteristics of the organization applying for funds:

  • Name: _______________________________________;
  • Form of incorporation: _________________________;
  • Form of ownership: ___________________________________;
  • Average headcount. (The average number of employees for the year is determined by summing the average number of employees for all months of the reporting year and dividing the amount received by 12): ____________________________
  • Authorized capital (authorized capital (authorized capital) - this is the amount of funds initially invested by the owners to ensure the statutory activities of the organization): ________________________________________;

What business is worth starting in a crisis?

As we know, a business plan (hereinafter BP) is a complex document containing information about the nature of the project, the timing of implementation, payback, investment attractiveness. Today we will look at the first two sections: business plan summary, product description.

Sample business plan summary: how to write

Having opened the title page, the first thing that an investor or employee of a financial company sees is an executive resume. Since this category of people is quite busy, they will not spend more than 10 minutes reading such documentation. Therefore, the Summary is the main paragraph of the BP, reflecting the essence of the project. The summary should keep the reader interested in moving on to the next sections. Then the chance for approval of the project increases.

  • name of the project, its essence;
  • full description of the company. Name, organizational and legal form, legal, actual address. The size of the authorized capital, the full name of the head, his qualifications;
  • for operating companies, the average number of employees, annual turnover, the composition of management personnel is indicated;
  • the purpose of the project - describe briefly the general idea, be sure to indicate this business from scratch or expansion of an existing enterprise, development prospects;
  • characteristics of products and services that will be provided;
  • stages of BP implementation, sources of financing;
  • financial performance indicators. Based on them, a decision is made on the feasibility of the project.

The main indicators that will need to be calculated include:

  • the estimated duration of the project;
  • revenues for the period under consideration in the BP;
  • the cost of implementing the idea, including the release of products;
  • the amount of investment capital or loan;
  • interest rate on the loan, maturity;
  • calculate the net profit for the period under review;
  • calculate the net present value (NPV) and project internal rate of return (IRR);
  • indicate the payback period, taking into account discounting, without it.

What you need to write a good resume

  • brevity, meaningfulness;
  • emphasis on uniqueness, the expected benefits from the implementation of BP;
  • forecast of financial results of activities, economic efficiency; <
  • visual calculations.

If you intend to cooperate with foreign investors, attach the annotation in English.

The first section of the document is the last. If you compose a short description before writing the main part of the BP, you will encounter certain difficulties:

  • the annotation will be superficial, the information will be presented vaguely;
  • if you do not fully own the necessary calculations, you will try to artificially adjust the BP to the goals and forecasts, set out in the first section.

Project essence

A business plan summary is a separate document of an advertising and presentation nature, the main purpose of which is to convey to investors the attractiveness of the project.

In fact, it is a kind of introduction, which is placed on the second page of the business plan. When receiving securities in their hands, financial organizations, investors or government agencies can familiarize themselves with the main aspects of the project in a few minutes and conclude that it is worth considering the paper further.

What do you need to pay attention to?

A resume for a business plan must meet three main criteria:

Matching requirements is difficult when it comes to a large-scale project. However, there are a number of subtleties to help make the section easier to compose.

It is necessary to start forming the text of the resume only after all the points of the business plan itself are ready. Its structure displays the main aspects of the plan:

  • What is a business project and for what purpose it is organized
  • How is it supposed to achieve the specified goals
  • Description of the market for sale of the offered goods or services
  • Analytical calculations on the sale and promotion of goods or products
  • What advantages does the project have relative to competitors
  • Schedule of expenses and profit, what risks arise and what was the plan for their compensation
  • Conclusion on the business plan

The summary for the business plan is drawn up in such a way that it will interest the investor in the project.

Resume design

The language used in writing a resume should be dry, without colorful phrases and personal judgments, representing a list of indicators and conclusions made as a result of business planning.

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