PRESENTATION2: “ THE EXECUTIVE SUMMARY” MASTERS IN MARKETING & INTERNATIONAL BUSINESS JUAN ANTONIO CRUZ ALVARADO INSTITUTO CULINARIO DE MEXICO

AGENDA Executive Summary 1. Executive Summary Meaning. 2. Sample executive summary (seeking funding) 3. Sample executive summary (not seeking funding) 4. Executive Summary elements.

Executive Summary I. The Executive Summary is the thesis statement of your business plan. It summarizes who you are, what your company does, where your company is going, why it is going where it is going, and how it will get there. If you are seeking funding, it specifies die purpose of the funding you seek and justifies the financial feasibility of your plan for the lender or investor. Who? What? Where? When? Why? How?

Executive Summary 2. If your plan is for internal use only and you are not seeking funds This statement would summarize your business. It would be a brief overview of the company's goals and statement of how it will focus to meet its projections. 3. If you are seeking funding The Executive Summary specifies the purpose of the funding you seek and justifies the financial feasibility of your plan for the lender or investor. A lender or investor reading only the executive summary should quickly see the name, age, legal structure, location, nature, and uniqueness of your business including strengths and risks. The Executive Summary should provide a quick overview of your business' past performance and of its future goals and how you plan to reach them. Information on the management team is imperative if you are seeking venture capital.

Executive Summary 3. If you are seeking funding Finally, the executive summary would include the amount and purpose of the loan or investment request, timing needs, justification for financing, and a repayment statement (lender) or statement of potential return on investment (venture capitalist). For a Lender For Angels For a venture capitalist

Executive Summary 3. If you are seeking funding For a lender. Address the question of loan repayment. The lender needs to see your company's ability to meet interest expense as well as principal repayments. The lender will want to know when the loan is needed and what you will use as collateral. For angels. The angel investor, jokingly referred to as the "Bank of Mom and Dad," is generally a wealthy individual who becomes personally involved with a start-up company—loaning expertise, experience, and money. It is best to have a solid business plan to justify the funding. However, depending on die level of familiarity, you may be able to get by with a less than perfect plan.

Executive Summary 3. If you are seeking funding For a venture capitalist. The days of the easy flow of venture capital are long gone. Since the April 2000 public market correction, companies can't depend on prospective future funding. They need to show evidence of progress and strong relationships. Remember that an investor will be an equity partner in your company and you will have to address how you will meet his/her goals for growth and profitability. After funding, the venture capitalist will very likely sit on your board of directors and serve as an advisor to your management. Increasingly, investors have been looking for an annual return of 45% to 60% over three to five years.

Executive Summary 4. Introductory Overview Begin your Executive Summary with a brief but concise overview of your business: who you are, where you are located, what you do, when the company was (or will be) established, and what makes your company unique. Elements: Capital Requirements If your company is seeking funding, state how much capital you need. If your company is not seeking funding, delete this section from your own executive summary. Breakdown of Use of Funds Provide a breakdown of how and when your company is planning to utilize loan or investment funds. If your company is not seeking a loan or investment, delete this section from your own executive summary.

Executive Summary Introductory Overview Loan Repayment State your plans to repay the loan. What type of loan are you seeking? How many years/months will you have to repay the loan? What will be the amount and frequency of your loan payments? When do your payments begin and end? CONTENT MISSION COMPETITORS YOUR COMPANY ADVANTAGES FINANCIAL PROJECTIONS Note: check the Summaries Samples!

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