Section 10 - Executive Summary
Introduction:
The Executive Summary can be the most important section of your business plan because people will read it first and it may be the only section they read. Although it will be printed out first, the Executive Summary should be done last after you have completed the other sections.
The keys to a good Executive Summary are that: it should be short (2 pages at most)
It should highlight what is important in your plan
It should get the reader excited about your business.
TOPICS:
1. Business Description:
Instruction: Briefly describe your business and highlight the key features of your products and services.
Sample Answer:
Sanchit Shirts is a new business located in 8, Shivajinagar in Pune. The primary types of shirts we will provide include casual shirts for daily use. The company has specialty of making exclusive office wear shirts. The company aims in making a wide variety of shirts useful for daily and festival use. Company also wishes to manufacture denim shirts which will be available in Lowest Rates.To keep our overhead costs low, Sanchit Shirts will be located in the home of Mr. Sanchit.
Assets : The home is equipped with a computer, fax machine and photocopier.
____________________________________________________________________________________________________
____________________________________________________________________________________________________
2. Ownership and Management :
Instruction: Briefly describe the organizational structure, ownership, and key management team of your business.
Sample Answer:
Sanchit Shirts is a sole proprietorship that will be run and managed by the owner, Mr. Sanchit . All administrative and accounting duties will be carried out by Mr Sanchit himself.. Any additional staff required will be obtained on a subcontract basis. We currently have 10 employees who manufacture the shirts. Mr Sanjay is a Textile Engineer and a member of the Institute of Fashion and Technology of Mumbai . He handles the production side of this business .Mr Sanchit supervises on all the production activities carried out in the factory. As it is a small production unit right now we have only one Managerwho handles all the production work for us.
____________________________________________________________________________________________________
____________________________________________________________________________________________________
3. Key initiatives and objectives:
Instruction: Highlight the key initiatives and objectives that are outlined in your business plan.
Sample Answer:
Sanchit Shirts are specialized in manufacturing trendy shirts used for various occasions not only for men but also for women. While other shirt-manufacturing units in the region offer typical, none specialize in this area. With todays demanding customer market, it is extremely important to prepare good Quality Shirts. Our shirts will be of unique quality in the market and special designed shirts will be available for festivals, ceremonies, etc. Our products and services will differ from our competitors in that Sanchit Shirts will offer variety of shirts for Men as well as Women. Too many shirt manufacturing companies produce formal shirts for Men. Sanchit Shirts realizes that now a days Working Women also prefer wearing trendy shirts and will offer Office Wear shirts for Women. Sanchit Shirts will also try to offer these variety of shirts at Lowest Rates.
____________________________________________________________________________________________________
____________________________________________________________________________________________________
4. Marketing opportunities:
Instruction: Provide an overview of the marketing opportunities for your business.
Sample Answer:
To fully understand the market we are targeting we talked to local sales leaders and others. In addition, we read local newspaper and journal articles, and collected industry statistics from Shirt Industry.Key market segments vary by specialty. The key markets for shirts are casual as well as formal wear and festival use. The total size of these markets is unknown because they are continually changing and there are no provincial or federal tracking mechanisms in place to accurately determine how much these market segments spend on shirts annually.
____________________________________________________________________________________________________
____________________________________________________________________________________________________
5. Competitive advantages:
Instruction: Summarize the main competitive advantages of your business.
Sample Answer:
Our Competitive advantages in production are our low Overhead and Labour costs. Company does not have to pay for under utilized staff or facilities. The dealers will be picked based on their expertise. This allows us to draw from a larger labour pool and skill set. Dealers will be hired, as needed which means that during down times our firm is not over staffedOverhead costs are comparatively low because Sanchit Shirts will be based at the home of Mr. Sanchit. Assets and labour costs will be low as there are no other full time employees.
____________________________________________________________________________________________________
____________________________________________________________________________________________________
6. Marketing strategy:
Instruction: Briefly describe the key components of your marketing strategy.
Sample Answer:
To fully understand the market we are targeting we talked to local sales leaders and others. In addition, we read local newspaper and journal articles, and collected industry statistics from Shirt Industry.Shirt manufacturing is a very diverse industry. There are hundreds of different types of shirts that several companies provide in this industry.Key market segments vary by specialty. The key markets for shirts are casual as well as formal wear and festival use. The total size of these markets is unknown because they are continually changing and there are no provincial or federal tracking mechanisms in place to accurately determine how much these market segments spend on shirts annually.
____________________________________________________________________________________________________
____________________________________________________________________________________________________
7. Summary of Financial Projections:
Instruction: Summarize the highlights of your financial plan such as your projected revenues and net income.
Sample Answer:
The revenue of Sanchit Shirts are projected to increase from Rs. 121,770 in 2003 to Rs 181,170 by 2004. Revenues will see strong growth of 22% annually as the business grows and expands. The Cost of Sales is 55% including total wages at 45% and goods and materials at 10%. The Net Income is projected to increase from Rs. 12,330 in 2000 to Rs 17,279 in 2004. Wages of Rs. 40,000 per year will be taxed at prevailing personal tax rates.
____________________________________________________________________________________________________
____________________________________________________________________________________________________