This section should summarize the key elements of the plan critical to the success of the venture. This is the first exposure the lender will have to your idea, so the executive summary is more than just a condensation of the plan. The length may be 1-3 pages. Often the executive summary will be written after most of the business plan has been completed.

Points to discuss include:

1. Business Description

Include name, address, plant or store description and brief history.

2. Product

Give a description of the product or service. What differentiates your product from existing products? What features of your product will give you a competitive edge in the marketplace? What is the product’s current state of development: do you need further R&D; do you have blueprints but no prototypes; is a prototype built and ready for production? What type of protection do you need: patents, trademark or copyright?

3. Market Data and Marketing Plan

Who are the customers? Where are they located? What market niche will you serve? Who is your competition? What is the market (sales) potential? How will you sell or market your products?

4. Management

Discuss the key persons involved in the business and summary of relevant expertise or past business.

Include these additional items if the business plan is for the purpose of borrowing money:

5. Summary of sources and uses of funds.

6. Loan repayment and break-even summary.

7. Explanation of why you need the money and how you will use it – be specific.

8. Explanation of the steps you will take if company is in a turnaround situation.

9. Discuss how you intend to repay the loan.