Business Plan Executive Summary Example
If you take a look at any business plan, the first section you will come across is the executive summary. The executive summary essentially provides an overview of the rest of the document.
It summarizes the contents of the business plan for readers, giving them a glimpse of what they should expect to find within the business plan and thereby helping them save time.
Because of this, the executive summary should be clear and concise, and interesting enough to entice the reader to dive deeper into the business plan.
Since it provides the reader with a glimpse of the rest of the business plan, the executive summary is often regarded as the most important section of a business plan.
If the executive summary fails in its purpose of capturing the reader’s attention, the reader will set aside the business plan without reading the rest of it. This would be a very great disadvantage, especially if the purpose of the business plan was to help you raise capital to start your business.
Considering that it is an overview of the rest of the business plan, the executive summary is typically the last section of the business plan to be written. Writing it last is also a lot easier. You can easily come up with an executive summary by simply reviewing and creating a summary of each section of your business plan.
Like I mentioned before, the executive summary is meant to save time for the reader, therefore it should be brief – typically, an executive summary does not exceed 2 pages.
The executive summary should end with a closing sentence or two aimed at showing the reader why the proposed business is a winning business.
Given that it is easier to learn how to do something by looking at example, below is a sample business plan executive summary that you can use as a guide as you write one for your business plan.
In the example, we are going to use a fictitious business named Pronto Lounge and Restaurant.
SECTION 1: EXECUTIVE SUMMARY FOR PRONTO LOUNGE AND RESTAURANT
The future looks promising for Queens Borough in Manhattan, particularly the Bay Terrace Neighborhood. Already, there are a number of high end commercial and residential developments coming up in the neighborhood. The development of a state of the art mixed use estate in the nearby Bayside neighborhood is also well underway.
Combined, these new developments will add over 150,000 sq. feet of commercial space and over 1000 residential units. The residential units will be sold at prices in the range of $200,000 to $500,000, while rents for the units will range from $1000 to $2500 per month. The completion of these developments will provide the Bay Terrace neighborhood with a year-round economy.
While the completion of these developments will increase the population within the neighborhood and stimulate the expansion of the economy, the area does not have a warm and friendly place where residents and visitors can enjoy some fine food. Pronto Lounge and Restaurant will provide such a place.
Pronto Lounge and Restaurant will be a fine-dining restaurant with a capacity of 50 seats and a lounge with a 20 seat capacity. The lounge and restaurant will focus on offering an American-Italian menu, with a little Moroccan influence.
The lounge and restaurant will be located in the booming Bay Terrace area in Queens, Manhattan, overlooking the ocean and Fort Totten Park along Cross Island parkway.
Pronto Lounge and Restaurant will have an elegant lounge and a cozy dining room, complete with comfortable furnishings and exquisite décor. The lounge will be fitted with antique love seats and comfortable leather couches.
On one corner of the lounge will be a softly lit bar stocked with classical drinks. Pronto Lounge and Restaurant will be the perfect place for people to get a drink or a bite, or for small business meetings.
Pronto Lounge and Restaurant will be a great place to eat, offering a combination of excellent food and an interesting, welcoming atmosphere. The mission is to be New York’s leading restaurant, with the best tasting food and the highest quality of service.
We want Pronto Lounge and Restaurant to be the restaurant of choice for all within this area, the young and the old, singles and married couples. Good treatment of our staff will be part of our success, since we believe that employee satisfaction will translate into employees who care deeply about the business and its clients.
We want the staff of Pronto Lounge and Restaurant to feel as part of the business and to give their best in ensuring the success of the business. Through a combination of excellent menu variety, great and interesting atmosphere and exceptionally friendly staff, we want to create a lounge and restaurant that will be a great place for clients to eat, a rewarding place for our staff to work, and a profitable business for its owners.
1.3 The Service And Products
The menu at Pronto Lounge and Restaurant will focus on American-Italian cuisine. It will also offer of few of the best Moroccan dishes. For those who want to please their palates with an Italian taste, there will be several specialties to choose from, such as pasta carbonara, bruschetta, mushroom risotto, osso buco alla Milanese and ribollita.
For those who choose to enjoy American dishes, there will be a wide variety, from Charleston red rice and Hawaiian haystack to Texan barbeque, baked beans, chicken nuggets, coleslaw and lobster rolls.
Every day, the menu will feature a single special Moroccan dish, such as Moroccan Seafood Bastilla, tagine, Moroccan mixed salad, eggplant zalouk and chickpea stew. The food at Pronto Lounge and Restaurant will have premium pricing to match its upscale feel. The strategy is to give Pronto Lounge and Restaurant a perception of a high end, fine dining restaurant through its food, price, entertainment and excellent service.
Pronto Lounge and Restaurant will be open on all days of the week. The restaurant will be defined by its warm and comfy atmosphere. To create such an atmosphere, the restaurant will be painted in warm colors.
On the walls will be amazing artwork by some of the world’s best contemporary artists. On each table will be a small vase with fresh flowers. Soft piped music will subtly sooth and entertain our guests. Every week, Pronto Lounge and Restaurant will have a special theme night with the aim of attracting new clients.
During summer months, the restaurant will have some extra seating on the patio where clients will get to enjoy a special summer menu. The patio setting will provide tourists with a casual atmosphere to enjoy their meal while taking in the sights of the street.
The service offered at Pronto Lounge and Restaurant will be very friendly and very relaxed. The business will hire people with a diploma in hospitality, people we can count on to provide the best service to our clients.
In addition, the business will provide continuous training for its staff and keep motivating and encouraging them to ensure they continue providing the best possible service to clients.
The management team will be comprised of professionals with several years’ experience in management, hotel and restaurant, food, catering, marketing and finance.
Pronto Lounge and Restaurant has assembled a strong and able management team. The team will be led by Cameron Pryce as the general manager. Pryce has a bachelor’s degree in Hospitality Management and an MBA.
He has extensive experience in the hotel and management industry and spent the last five years as the manager at a Las Vegas restaurant that made over $1 million in annual sales.
The financial and accounting functions of the business will be overseen by Leslie Montrose, who has over five years’ experience as a certified public accountant.
Marketing will be overseen by Frank Shields, who has a marketing degree and has formerly worked with some of the city’s best marketing agencies.
Finally, we have Everett Bracket as the senior chef. Chef Bracket has over ten years’ experience in the culinary industry. Before agreeing to join the Pronto Lounge and Restaurant team, Bracket was an assistant chef on a private yacht.
1.5 Target Market
Pronto Lounge and Restaurant will be targeting locals who live and work within Queens Borough and the greater New York and are active restaurant seekers. We will also target the tourists who flock to the many tourist attractions in Queens Borough.
We will specifically focus on young to middle aged adults with an income of $30,000 to $60,000 who are looking for excellent food and a great time.
The general demographics of our target market are males and females in the 20-50 years age bracket who have at least a college degree and are employed.
1.6 Competitive Advantages
- Pronto Lounge and Restaurant will differentiate itself from the competition by creating a unique and exciting fine dining atmosphere. The restaurant will be set apart from other restaurants by its unique, well thought out design and its exquisite décor. Each client dining at Pronto Lounge and Restaurant will enjoy an experience that is unlike anything they’ve experienced before.
- Pronto Lounge and Restaurant will also set itself apart through its commitment to high product quality, not only in terms of food but also through offering friendly and high quality service.
- A unique and varied American-Italian menu with a touch of Moroccan influence.
- Commitment to controlling and minimizing costs at all times.
- Pronto Lounge and Restaurant will have a special theme night once each week, which will help to attract new and varied clientele to the restaurant.
1.7 Financial Projections
The most important thing for us is to ensure financial success for Pronto Lounge and Restaurant. We believe that we can achieve this by offering excellent food to our clients and maintaining a high quality of service.
Based on our knowledge and experience in the hotel and restaurant industry, we have come up with projections for the business.
Starting with an expenditure of $300,000 in the first year, we have forecasted sales of $1,200,000 and $2,000,000 for years two and three. We expect to achieve a net profit of 15% in year three.
1.8 Financing Requirements
We are seeking for an investment of $200,000 which will go towards financing Pronto Lounge and Restaurant’s first-year growth. The founders of Pronto Lounge and Restaurant have already invested $100,000 of our own capital into the business.
In exchange for their investment, investors will be given 40% equity in the business.
In the first three years of operation, the objectives for Pronto Lounge and Restaurant will be:
- To launch the lounge and restaurant with a highly publicized grand opening event that will coincide with the New Year celebrations.
- To keep the costs of food under 35% of revenue.
- To keep the labor costs below 30% of revenue.
- To maintain a reputation of providing excellent food and high quality service.
- To keep the average sales of the business between $1,000,000 and $2,000,000 every year.
- To expand our marketing and advertising efforts so as to attract clients from the whole of New York.
- To achieve over 10% profit for the first two years and increase it to 15% from the third year.
There is a lot of competition in the hotel and restaurant business, and restaurateurs must find ways to make their restaurants unique if they want to achieve and maintain a competitive advantage.
Pronto Lounge and Restaurant’s founders are well aware of this. With the developments coming up in Bay Terrace and the nearby Bayside neighborhood, the area will need a pace that will fit into its sophisticated and entertaining new look.
The developments will also attract a significant population of moneyed adults into the area. Considering that no other restaurant in the area has come up with such a concept, we believe that we have a window of opportunity to enter and fill a profitable niche in the market.
There you have it. If you are in the process of writing a business plan for your business, you can use the above example as a guide to help you come up with a clear, concise and interesting executive summary for your business plan.