Hi I'm Kathy.
thanks for watching the final video inthe Working for Wonka how to write a business plan series.
In this video are going to go over theexecutive summary, which you know from earlier videos is thefirst section your business plan, but the last section you should write.
And that's because it's the synthesizing allthe sections and your business plan condensed into some some easily digestible easily understood nuggets.
So, I want you to think of this as as similar to when someone pitches a movie in hollywood.
they would write what's called a movie treatment one maybe two pages, it's basically a matter paragraphs they have take that into thestudio and pitch the entire idea for a film, sothink about that it's an hour and a half or two hour movie with multiple plot twists and turns, with characters that all have character arcs.
And you know the writer of that movie thinks every one of those plots and arcs is very important.
But they all getweeded out and just the key, strategic, element inthat movie go into the movie treatment.
think of your executive summary as the movie treatment for your businesspla.
So what's going to go into it? You're gonna cover your businessdescription, position in market accomplishments to date, financialhighlights, and future milestones.
Now that may already be sounding to you likeit's way too much information to cover in a page or a page and a half.
But it'sreally not, because the backup for that information you've already written out in the other sections of your plan.
so let's start with the business description.
You're going to take a little bit from the business description you've already written.
And you'regonna answer kind of the who what how of what this business is all about.
For example, we're going tp stay with the how to build a better mousetrap example and for HBBM, they're business description in the executive summary might read something like this: how to build a better mousetrapinc, is a consumer product company launched by successful entrepreneurs and retail veterans Tom and Jerry.
HBBM'sgoal is to redefine the mousetrap industry by expanding the distributioninto non-traditional channels trade and by bringing a new categoryconsumer to the table.
and now we've hit something as basicas we're a consumer products company which we don't outline really anyplace elseplan, that's really what you need you want the bare-bones facts we're a consumer products company that's going to bring new products into the category and we're being run by my two entrepreneurs with that have a successful track record.
That paragraph is enough.
Next you're going to define your position in the market now position in the market really iswhat makes you different than other competitors if you're already in the market you could say your actualposition you're number one, in your going to be your number one plus, once you finish this next year.
For HBBM,this might look like this: the mousetrap industry is a growthindustry that has been dominated by two key manufacturers who compete mainly on price HBBM is the first company to introduce ahigh-end line of products.
By introducing a luxury price point, HBBM brings retailers more category varietyand higher margins.
HBBM also believes it will bring a newconsumers market.
So, two things happened here; one, we have defined the market size – we said it's a growth industry.
You could drop actual numbers in there, there's a $20 million dollar industry with a consistent, 3 percent year over yeargrowth, if you wanted to.
You don't need to get much more detailedthan that.
our position in the market.
well, we're a new company, so we're not in that market yet, but we plan to position ourselves within the competitors as the first high-end luxury item.
Follow that with your accomplishments to date.
Now the accomplishments are in a verydramatically depending on what type company you have, and where you are in acompany's lifecycle.
It could be that you've just launched a newproduct.
It might be that you have a new line of products you have new geographic distribution, new distributionmyabe you've changed manufacturing.
It could be any number of things.
Here's an example of how it might look for HBBM: Since it's launch six months ago HBBMand has identified key vendors and negotiated exclusive relationships with these vendors.
we've secured pattons on all parts of the mousetrap to define your uniqueselling proposition would also closed the sale with our firstretailer Cats R Us, securing endcap placement and two promotional windows.
So, that really is a hodge podge of accomplishments but it's a fine look atwhat a new company might have.
we've got our manufacturing we've got our vendors in place ( ) exclusive relationships with them.
wesecured patents and we've also got our first deal.
your accomplishments to date are going to bevery specific to your business I'm just trying to you a little bit of a look ofwhat it might be based on the other things we put in ourmarketing plan.
financial highlights will be very specific to your business.
maybe I would want to put for HBBM what that first sale is and what are expected margins will be.
Financial highlights might be the loan that you've secured and it might be terms, better terms thatyou've negotiated with a vendor.
it might be margin growthyear over year.
I'm not going to give you an example of this because financialhighlights are, financial highlights.
whatever it is that's good about your company should go into a short paragraph inthis section.
and then last is your milestones so what is it that you're going to bedoing over this next year? this business plan is the plan for the next year, or for the next three years.
most likely just for the next year are you launching new products, are yousecuring x number of vendors, are you expanding into new countries what are you gonna do over the next year.
an example of whatthat might look like for HBBM is HBBM plans to have nationaldistribution by spring 2012, so I would be assuming then that you're only maybe in the northeast and so by the end of spring 2012 you'llbe national.
in the fall 2012 we'll be introducing a first-ever mousetrap thatseasons cooks and serves rodents after trapping.
this patented technology is set for approvalby the FFDA that's the feline federal department of agriculture by summer 2011 with the addition this never-before-seentechnology HBBM is poised to reach the two million dollar milestone by the 2012 holiday selling season.
very clear milestones, we expect to havea new patent we then expect to have a new product launch, and that's going togive us an expected revenue of blah.
that's what you should be writing for your ownexecutive summary to help you stay on track.
these milestones in the goals asyou're looking for you can also put my options that you hadjust reached if you wanted, in this area.
if you'rewriting this plan for investors, your future milestones are particularlyimportant.
and that's your whole executive summary as you can see it really is it's those4-5 points, a paragraph each, and that paragraph shouldn't be page of a paragraph, it's a few sentences in each paragraph.
just knocking down, nailing the nailing thepoints, and you're done.
No only are you done it with the executivesummary, you are done with your business plan.
congratulationsits been an enormous amount of work.
give yourself a big ole pat on theback then get back to work! thanks forwatching the working for wonka how to write a business plan series.
ifyou have any questions on anything you've seen log on toWorkingForWonka.
Com go to the contact section and shoot me an email, I'm happy to answer it.
Thanks good luck with your plans!.