An executive summary is a common thing owned by a business. This one thing is important to have, especially for a new business. In a new business, surely not many people know the business well enough. Therefore, having an executive summary will provide quite good benefits, especially if the business later needs partners or investors.
The executive summary itself has several necessary components so that the information can be useful when read by other parties. Before discussing the contents contained in it, let's discuss the meaning of an executive summary in business.
An executive summary is a summary of a business plan owned by a company. Broadly speaking, the summary in question is the components that can briefly explain the business. With this summary, many benefits can be obtained by business people.
The existence of this summary also makes it easier for business people to explain the business plan that they are running. The business person does not need to explain at length because this has been explained in general through the summary. However, making a good executive summary is also not easy.
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Executive Summary Component
When making a business plan, you have to make it full of details. Even if it is a summary, it is important to make it filled with important information so that readers of the executive summary can easily understand the purpose of the summary. The following are some of the important components to have in an executive summary.
- Company Information
One of the most important components to write in an executive summary is company information. If this summary is created for the benefit of expanding the business, company information will become even more crucial to help other parties identify the company.
Information such as business name and business location is a mandatory component. Apart from that, you can also include the history of the business journey and how the business worked from the start. In addition, you also have to write down the information briefly so you don't beat around the bush
- Company Vision and Mission
In addition to including information, the business person must also provide a brief vision and mission of the company in the written executive summary. This is done with the aim that business people or investors who read it can clearly understand what the purpose of the business is to be built and what they want to achieve in the future.
- Business Products
You also have to write down information about what products you sell in the business. Writing business products is important enough so that the readers of the executive summary can understand the business. You also have to explain the product or service being sold and how the business works.
- Business plan
Because usually an executive summary is used together with a business proposal, you also need to write down briefly about the business plan you want to do for a certain time projection. This will help the reader of the summary to find out the business plan that the business owner wants to achieve.
- Business Budget
As previously mentioned, executive summaries are often created together with business proposals. The summary will not be complete without a business budget from the company's finances. Readers of the summary can find out briefly the financial budget of the business.
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Tips for Making an Executive Summary
After knowing what needs to be included in the executive summary, you can start making it. However, making a summary is also sometimes quite tricky. Therefore, you need tips to help you in writing it. The following are tips for making an executive summary that you can follow:
- Keep it Short and Concise
Because the name itself contains the word summary, an executive summary needs to be written briefly. However, this does not necessarily mean that there is no clear information. Business owners also need to provide information that is not only concise but also clear. With concise and concise information, summary readers will find it easier to understand.
- Explaining the Targeted Market Segmentation
Market segmentation is important to have in a business Especially if you plan to provide a business proposal to investors, you must ensure that the market segmentation is correct so that investors know that the business owner understands what he is doing. In addition, business owners can also include other market segments if they want to expand their business.
- Stating the Problems
In addition to making a profit, a business is also established to help customers in dealing with problems. Therefore, you also need to write down any problems faced by customers that can be solved or assisted with the products and services you sell.
- Explaining the Solutions Offered by the Product
Still related to the previous point, you can help with this problem through the product or service that you provide. Therefore, in the executive summary, you must also be able to explain how these products and services can help customers overcome the problems they face.
- Demonstrate Business and Product Strengths
Last but not least, the last tips on making an executive summary are that you have to show your strengths in the executive summary. Especially if you use the summary for part of a business proposal that you want to submit to investors.
Writing down the advantages possessed by the business or product will make investors more interested. A business must know the advantages that can be offered compared to competitors so that both investors and customers are further interested in the business.
This is a brief explanation of the executive summary. If you own a business, you need to have an executive summary whenever you need it in your business proposal. In addition, the executive summary also makes it easy for readers to understand your business in general.
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