EXECUTIVE SUMMARY The executive summary is crucial for getting the attention of the one-minute investor, It must convey a clear and concise picture of the proposed venture and, at the same time, create a sense of excitement regarding its prospects. This means that it must be written—and, if necessary, rewritten—to achieve clarity and create interest. Even though the executive summary comes at the beginning of the business plan, it provides an overview of the whole plan and should be written last. Depending on the situation and the preference of the entrepreneur, the executive summary may be in the form of a synopsis or a narrative.
Synopsis. The synopsis is the more straightforward of the two summary formats. A synopsis briefly covers all aspects of the business plan, giving each topic relatively equal treatment. It simply relates, in abbreviated fashion, the conclusions of each section of the completed business plan. Although it is relatively easy to prepare, the synopsis can be rather dry reading for the prospective investor.
Narrative. Because the narrative tells the reader a story, it can convey greater excitement than the synopsis. However, composing an effective narrative requires a gifted writer who can communicate the necessary information and engender enthusiasm without crossing the line into hyperbole. A narrative is more appropriate for businesses that are breaking new ground, with either a new product, a new market, or new operational techniques. It is also a better format for businesses that have one dominant advantage, such as holding an important patent or being run by a wellknown entrepreneur. Finally, the narrative works well for companies with interesting or impressive backgrounds or histories-14
A sample executive summary from the business plan of a direct mail outlet is shown in Figure 8-4 on pages 204 and 205. Would you consider the example to be a synopsis- or narrative-style executive summary?