My blog for this week out of the book called Anatomy of a Business Plan will be on executive summary. Though I learned plenty of things so far reading this book, yet I will concentrate on giving you an idea of how to prepare an executive summary with the information I have gain from reading this book. This is a wonderful book to read if you have no idea of how to create a business plan. I now see why the author named it with anatomy in her title.
Executive summary and all that is required to be in an executive summary. Rather you are seeking finical help or not this blog will help you get an idea of what to expect in your summary. I was shown examples of a complete executive summary in this book and I will share them with you at the end of this blog.
First let me explain to my readers what an executive summary is. An executive summary is a statement or an overview of your business plan. It let the reader of your plan know what you are trying to accomplish, where is your company heading, what is your needs, what make you different from any other businesses and why. It is your introduction of your business, that mean it will be one of the first items that will be read so you need to make a good impression. The executive summary will be completed after your business plan is finished. The reason for this is so that you will have all the necessary important information to include in your summary.
What will be included in your summary is who you are where your business is located or will be located, what kind of business is it, and the uniqueness of your business. Then what will follow is your market opportunity, mission statement, profile of all managers, financial projection, and information about your competitors along with their strength and weakness. If you are seeking a lender you will state the amount you are in need for, how long you need the loan what it will be used for, how this loan will benefit your business and the repayment plan or date when you will pay the lender back.
That was just a quick summary of an executive summary; however, seeking a lender versus not seeking a lender; your summary will be a little different. One difference is you will not have to state anything inquiring about a loan also your summary would only need to be one page long. If seeking a loan your summary will be longer but should not exceed 3pages.
Hopefully some of this information was helpful. If you want more details on this topic, my advice is to download, rent or buy the book “An Anatomy of a Business Plan”. It will be well worth your time. You can also ask any question that I may be able to answer concerning the book. Please look forward to other topics on this book each week. Below is an executive summary that is seeking an loan. I have copy and paste this out the book “Anatamoy of a Business Plan, By Linda Pinson”
AeroTech, Inc. Executive Summary
Formed in 1999, AeroTech, Inc. was established with the objective of custom designing and manufacturing specialized parts for the aerospace industry. AeroTech, Inc. is an S corporation operating from a 10,000 square-foot manufacturing and warehousing space in Aerospace Tech Park, a light industrial park, located at 372 E Main Street, Burke, New York. In the past two years, the Economic Development Corporation (EDC) of Burke has been successful in encouraging large aerospace and technology corporations to relocate to the Tech Park. AeroTech, Inc. has developed excellent working relationships with the relocated companies. The company currently serves 20% of the total market with gross revenues of $3,650,000.
Market Opportunity
Burke EDC projections through the year 2011 indicate a 30% increase in tenancy in the Tech Park by aerospace companies. Federal government statistics project a 25% increase in the United States in aerospace development through the year 2020. Information from engineering and aerospace trade associations indicates that automation is needed to allow the company to remain competitive. By building on past working relationships with current companies and by actively marketing to new residents of the Tech Park, AeroTech, Inc. will be able to capture an additional 15% of the market; the Corporation’s share will be 35% of the total market.
Capital Requirements
The company is seeking growth capital in the amount of $250,000 for the purpose of purchasing automated equipment and for training existing personnel in the use of that equipment. Modernization of equipment will result in a 35% increase in production and will decrease the unit costs by 25%.
Funding is needed in time for the equipment to be delivered and in place by May 23, 2008. There is a two-month period between order placement and delivery date. Training of employees on the new equipment is projected to cover a two week period following equipment placement.
Breakdown of Use of Funds
Provided below is a breakdown of the use of funds
Activity Amount
Automated Equipment $ 230,000
Personnel Training $ 20,000 Total
Loan Repayment $250,000 Repayment of the loan and interest can begin promptly within 30 days of receipt of funds. The loan can be secured by company-owned real estate that has a 2007 assessed valuation of $800,000.
Mission
The mission of AeroTech, Inc.is to serve the aerospace industry, providing premium quality parts, value added services, and quality workmanship. The company’s experience and proven service to the aircraft industry have demonstrated its capability to meet current and future aerospace requirements.
Management
AeroTech, Inc. has a very strong management team as well as a board of directors comprised of several industry and community leaders. Brief profiles of the management team are provided below (See resumes in Supporting Documents).
John Guzman, President and Chief Executive Officer
John Guzman was previously CEO for Omni Aerospace and was the force behind its well-documented growth between 1991 and 1998.
Roberta Thompson, VP Marketing Director
Roberta Thompson previously served as marketing head of the products division of ABC Corporation.
Thomas Choi, Corporation Secretary
Thomas Choi heads up Administration, capitalizing on his twelve years as an administrative executive with US America Air.
Althea Johnson, CFO
Althea Johnson was a senior partner with JFG Accounting and successfully achieved turnarounds for several multi-million dollar corporations
Donald Smith, Production
Donald Smith came to AeroTech, Inc. following 20 years as an R&D and production engineer with Boardman Electronics.
Competitors
Competitive threats come from Aerospace Manufacturing and Technology, Aero Designs, Inc., Aero Parts & More, and Space Technology, Inc. While Aerospace Manufacturing and Technology and Aero Designs, Inc. have longer operating histories, their technology is obsolete and subject to several inherent disadvantages. These disadvantages include longer installation time, more complex components and assembly, and excessive weight issues. Aero Parts & More and Space Technology, Inc. have technology that meets the unique demands of the marketplace. However, both companies have a short operating history and lack the credibility demanded by customers.
AeroTech, Inc.’s Competitive Advantages
AeroTech, Inc. boasts a world-class management team with extensive experience in the aerospace industry and a successful record of running multi-million dollar corporations. AeroTech, Inc. benefits from first-mover initiatives as the company introduces groundbreaking parts designed specifically for the latest technology in the aerospace industry. Additional competitive advantages include: patented technology, state-of-the-art equipment, and long-term contracts with key clients including the United States military.
Financial Projections
The company is expected to break even 24 months after completion of the employee training period. Forecasts for identified revenue growth resulting from a devoted and loyal customer-base and aggressive marketing initiatives indicate that AeroTech, Inc.will exceed $13 million by the end of year 3. Net profit for the three years is forecast to be in excess of $1.3 million.
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