It is prepared after total plan is written. The executive summary should be two or three pages in length and should stimulate the interest of the potential investor. It should not be taken lightly by the entreprenuer since the investors uses the summary to determine the worth of the business plan. Determining what is important would be difficult since every business plan is different. A no. of significant issues should be addressed. First, briefly describe the business concept. Second, data that support the opportunity for this venture should be stated. E.g. trends and potential growth in the industry, internet business, growth in no. of I-net users, growth in avg time spent on the net. After establishing the reallity of the opportunity then state how it will be perused. What is the mktg strategy and how does it differs from others. Next highlight key financial results that can be achieved importance experience of entreprenuers, important contracts or other legal documents that are in place which can assist in selling the business venture to a potential customer
Why business plan fails?
Generally poorly prepared business plan can be blamed due to one or more of the following factors,
- Goals set are unreasonable
- Goals are not measurable
- The entrprenure has not made the total commitment to the business or to the family.
- Entrepreneur has no experience in planned business
- Entrepreneur has no sense of potential threats or weaknesses to the business.
- No customer need for the proposed for the product or services.
Setting goals requires information about the type of business and the competitive environment. Goals should be specific and not so mundane as to lack any business of control. Entrepreneur may target a specific mkt share, units unsold or revenue. These goals are measurable and can be monitored overtime. Lenders or investors will not be inclined toward a venture that does not have full time commitment. Lenders or investors may expect entrepreneur to make financial commitments even if it means second mortgage or a depletion of savings. Lack of experience will result in failure unless the entrepreneur can attend the necessary knowledge or team up with someone. The entrepreneurs should document customer needs before preparing the plan. This can be identified from direct experience, letters from customers or mkt research. Clear understanding of needs and how the entrepreneur will effectively meet them is vital to the success of the new venture.
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