You write an excellent two page executive summary, an investor hands you £50k. Simple.
Not quite.
Realistically, the exact opposite is more likely to be true – you write a bad two page executive summary, an investor doesn’t even consider your application and you definitely don’t get £50k investment.
An executive summary is a vital first step in your search for investment so let’s have a look at exactly what it is and how to go about writing it.
What is an executive summary?
An executive summary is a summary of the information you’ve already prepared in your pitch deck. It will be one of the first things you send to a potential investor. Think of it as a taster of what’s to come, the blurb on the back of the book if you like. It has to attract and stimulate interest and leave your reader wanting to know more. The goal of your executive summary is to get you to the next step in the investment process.
When to use an executive summary?
An executive summary to attract investment will generally be sent before the pitch deck, often as a cold call email or following a brief introduction. There are times when you’ll also attach the pitch deck. But the summary is the document that the investor will open first to quickly decide if it’s worth taking the time to look at your longer presentation.
What to include in an executive summary?
♦ Company name/tagline and mission statement. This is your introduction about who you are and what your company is about.
♦ Problem/Solution. Identify your audience’s problem and show them your solution. Or you may be satisfying a desire. So show where there’s an opportunity in the market and how you fulfill it.
♦ The Market. What is your target market and where can you make an impact? What’s your current and potential market share?
♦ Competition. A brief competitor analysis to show your company uniqueness.
♦ Product/Service. Show exactly what your product or service is and the “secret sauce” of your business.
♦ Business Model. Show them how your business makes money.
♦ Financials. What are your sales and profit forecasts?
♦ Investment. Outline the investment you’re looking for and the exit strategy you have so that your investor knows how they’ll get their investment back.
♦ Your team. Highlight why you and your team are the right people to make this business work.
You will have realised by now that these points are the same as the slides that you should include in your pitch deck. That’s because an executive summary for investment is exactly what it says it is – a “summary” of your more detailed plan.
Top tips for writing your executive summary
♦ Write it after you’ve written your pitch deck. It’s a lot easier to summarise something you’ve actually written so get the pitch deck done first.
♦ It’s a summary. Keep things concise. This can be one of the trickiest bits, knowing what to include and what to leave out and how to condense an explanation into a simple statement. Imagine yourself as a potential investor – what would you need to know that would encourage you to dig deeper.
♦ Lead with your most compelling information. If you’ve got an impressive (ie well known) client or have won awards get that in right near the beginning. Don’t be afraid to name drop. Otherwise make sure you’re leading with a concise statement of the unique solution/opportunity that you can fulfill.
♦ Remember you are selling your vision for your business. This is not just a descriptive document. It needs to grab attention, be compelling and push your reader to want to take things further.
♦ Structure the document properly. It needs to be easily readable and well organised. They’re not investing in you for your word processing skills but a poorly executed document reflects badly on you. If that’s not your strength, get someone to help.
♦ Consider a copywriter. If your budget can stretch to it consider getting someone to write the summary for you. Copywriters are trained to write texts that attract attention, hold that attention and emphasise the most important points, all within the constraints of a word count.
♦ Avoid generalisations and cliches. Don’t make unquantifiable statements like “the best widget company” or use cliches like “disruptive technology” that don’t add information. We assume your team is “passionate and committed”, you don’t have to tell us.
♦ Your document should be about 1-2 pages. If it’s much over that go back through and think if there’s anything you could cut or rewrite in a simpler way.
In conclusion
Getting investment for your business is a multi-step process. The executive summary is one of the very first steps you’ll take. It may only be a 2 page document but its importance should not be underestimated. Without an excellent executive summary you’re unlikely to realise your investment goals.
If you need help with the process of raising funding for your business please get in touch. We’d be delighted to hear from you.