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1. Business Plan Format, Section 1:
Executive Summary (2 pages)
The executive summary is probably the most critical part of the business plan format. Many business plan readers will read the executive summary and then decide whether to proceed further or discard the plan.
The executive summary should be written last, once all the other sections are complete. It should not exceed two pages and should eloquently summarise the most important aspects of the plan.
Key elements that should be included in the executive summary are:
- Business concept: A description of the business, its products and the market it will serve. You need to describe what will be sold, to whom and how it has a competitive advantage.
- Financial features: The summary should highlight the important financial points like sales, profits, cash flows and return on investment.
- Financial requirements: You need to be clear about the capital needed to start and expand the business, as well as how the capital will be used.
- Current business position: Provide an overview of the company, its legal form of operation, when it was formed, the principal owners and key personnel.
- Major achievements: Highlight any developments within the company that are essential to its success. This includes things like patents, prototypes, locations, contract that need to be in place and results from test marketing already conducted.