Chapter II: Executive Summary PDF

Chapter II: Executive Summary  The executive summary points out the overall highlights of the business plan as well as a bird’s–eye view of each section. It must be written in simple language that can easily be understood and at the same time attract the attention and influence the decision of th...

Chapter II: Executive Summary  The executive summary points out the overall highlights of the business plan as well as a bird’s–eye view of each section. It must be written in simple language that can easily be understood and at the same time attract the attention and influence the decision of the reader. The executive summary must cover at least three pages but must not go beyond five pages.  This section presents the vision, mission, goals and objectives of the business, business model, the business and product positions, wealth improvement approaches and parties supporting the business. 1. Vision, Mission, Goals and Objectives 2. Business Model 3. Business and Product Position 4. Wealth Improvement Approaches 5. Parties Supporting the Business Vision, Mission, Goals and Objectives What is a Vision Statement? - The vision of an organization represents its long-term aspirations and what it aims to become or achieve in the future. It is a guiding star that inspires and directs the organization’s efforts. A vision statement is typically broad, motivational, and future-focused. Ex. "To be the leading provider of sustainable energy solutions." What is a Mission Statement? - The mission defines the organization's purpose, its core values, and the reason for its existence. It focuses on what the organization does, who it serves, and how it creates value. A mission statement is practical and action oriented. Ex. "Increase market share in the solar energy sector by 15% within the next three years." What is a Goal? - Goals are broad outcomes that an organization seeks to achieve, often in alignment with its vision and mission. They outline the strategic priorities and serve as milestones for success. Ex. "Expand operations to 50 new markets by 2030." What is an Objectives? - Specific, measurable, achievable, relevant, and time- bound (SMART) targets that help achieve goals. They are actionable and often include specific metrics to track progress. Ex. "Launch three new solar panel models by Q2 of next year." In Summary: Vision: Where the organization aspires to be? It sets the ultimate destination. Mission: Why the organization exists and what it does. It defines the roadmap to get there. Goals: Broad priorities aligned with the vision and mission. Objectives: Detailed and measurable steps to achieve goals.  Business Model A business model is essentially a company's plan for making a profit. It is a popular tool used to visualize and analyze business models. It provides a structured framework for understanding the key elements of a business and how they interact. It is defined as the perspective of the business in terms of its structure, production, operation, and financial activities that will lead to the achievement of the VMGO. Business Model Key Partners: Who are your Key Partners? Your suppliers? Key Activities: What Key Activities do your Value Propositions require? Key Resources: What type of resources do you require? Value Proposition: What value do you deliver to the customer? "Why should customers choose you over your competitors?" Customer Relationships: What type of relationship do you establish and maintain with Customers? Channels: How do you reach your Customer Segments? Customer Segments: Who are your target customers? Cost Structure: What are the most important costs inherent in your business model? Revenue Streams: How do you generate revenue from each Customer Segment?  Business and Product Position Business Position This refers to how a company positions itself within the broader market. It's about how the company is perceived by customers, competitors, and the general public. Ex. The premier provider of personalized, results-driven tutoring for high-achieving students in competitive academic environments. Product Position This focuses on how a specific product or service is positioned within the market. It's about how customers perceive the product in relation to competing products. Ex. The most engaging and effective online platform for mastering high school math, designed for students who thrive on interactive learning and personalized feedback  The business and product position will help determine how the business defines its course and the process of accumulating wealth. It tells the size of the market and the target market share of the business and product. The business and product position must be able to convince the readers that the proposed business has a competitive advantage in the market. Wealth Improvement Approaches Wealth improvement involves strategies aimed at enhancing financial stability, increasing income, and building long-term wealth. These approaches can be applied at individual, business, or societal levels and often combine elements of planning, investment, and risk management. It generally focus on increasing an individual's or entity's financial resources and overall economic well-being. Ex.: Career Advancement: Pursuing higher education, developing new skills, and seeking promotions can lead to increased earning potential. Investing in Human Capital: Investing in oneself through education, health, and personal development can enhance earning potential and overall well- being.  Parties Supporting the Business The last section of the executive summary is a description of the parties that strongly support the business. The parties that have direct relationship with the business are as follows: Owners – who will establish the business. The starting capital will be coming from them. Customers – the ones who will patronize the service. Bank - in the event of capital insufficiency, owners will borrow money from the bank. Suppliers - Investors - Employees and staff - Competitors - Thank You! ☺