But in real life, the plan related to seeking investment is a subset, a special case. Most real business plans are about managing a business and need a lot less description and research than the business plan related to seeking investment. In most cases, a lean business plan fits the business purpose best.
This means having the right financial statements, forecasts, and a digestible explanation of your business model available for potential investors. Writing your business plan helps you put all of those pieces together and create connections between them to tell a cohesive story about your business.
Likewise, your business plan should answer these questions during the short-term period, particularly one year; specifically, what your business`s goals are for the current year, and what is essential in order to make your first year a success.
Ideally, the executive summary can act as a stand-alone document that covers the highlights of your detailed plan. In fact, it`s very common for investors to ask for only the executive summary when they are evaluating your business. If they like what they see in the executive summary, they`ll often follow up with a request for a complete plan, a pitch presentation, and more in-depth financials.
Write your plan using language that your audience will understand. Accommodate your investors, and keep explanations of your product simple and direct, using terms that everyone can understand. You can always use the appendix of your plan to provide the full specs if needed.
Because your executive summary is such a critical component of your business plan, you`ll want to make sure that it`s as clear and concise as possible. Cover the key highlights of your business, but don`t into too much detail. Ideally, your executive summary will be one to two pages at most, designed to be a quick read that sparks interest and makes your investors feel eager to hear more.