All business plans have a management summary section. It basically describes the business structure, pointing out the individuals that are involved. It gives vital information regarding the people that are responsible for the management of the company. It describes how these individuals manage the company and also highlights the external resources that the business uses in its operations.
This section is essential to any business plan. This is because it outlines the key competencies of your team. It also demonstrates the experience that your team holds in particular fields that are crucial to achieving the company’s overall objectives. Thus, when you write a management summary, it ultimately shows the strength of your company to readers of the business plan. Investors, financiers, and shareholders are most likely to scrutinize this section since it has the information that they need for decision-making.
In light of the above, this article will guide you on how to write a management summary in a business plan. Before you start writing the management summary, it is crucial to know who and what should be included in it.
What Should Be Contained in a Management Summary?
The Head of the Team
This is the person responsible for selecting, coordinating and organizing the team. You should write everything about him/her from the credentials to their background, and also their vision.
This description focuses on the whole team that has been tasked to manage the company. When writing the management summary, the skills and professional background should be highlighted. Concentrate on the following:
- The education background – Write only those that are relevant to the position they hold individually.
- Work experience – Write the current and past work experience
- Skills and competencies – Write those that are relevant to the position
- Achievements and accomplishments – Write only those that have been realized while still in the company
- Personal information – This might include details like age, current residence, and individual preferences. You might also add the motivating factor that makes them want to be part of the team.
Explain the business structure that your company will take. Whether it’s a sole proprietorship, a limited liability company, a corporation or a partnership. Give the hierarchy of command in the business.
If your company has a governing board, ensure that you include them in the management summary. Give a brief description as to why each board member was chosen to be part of the board.
Every company utilizes the input of external professionals who supplement the efforts of the company’s workforce. Therefore, they have a stake in your business and should be included in the management summary. Highlight their key roles in achieving the organization’s objectives.
Since you now know what should be contained in a management summary, here are some tips on how to write one:
How to Write a Management Summary
Always Write It Last
The management summary is usually found at the beginning of the business plan. However, it should be written after one has finished writing the whole business plan. This is because it contains the summary of all the points that you’ve made in the business plan. Thus, it makes more sense if you write it after highlighting the most important points of your business plan. It will be more objective and will make your work simpler.
Make It Concise
The management summary should be as concise as possible. Experts recommend that the length of the management summary should be a single page or at most two. If your company has a lot to write about, then keep it to no more than five pages. Long management summaries put off the readers, and they may not read it entirely. Therefore, if you want your management summary to be read, ensure that it’s short.
Adhere to Simplicity
“Simple is Genius.” Your management summary should be as simple in form, function, and structure. Use short texts, lists, and bullets to convey points. Break your text into parts each having a subheading. Use vivid illustrations to convey messages. For example, images, charts, graphs, and infographics. It makes your work quite simple to understand. The last thing you would want is your reader to struggle to understand what you’ve written in the summary.
Place Items and Points According to their Importance
Although there is no prescribed way of putting points and aspects in a management summary, it is recommended that one organizes them according to their importance. Always start with what you think needs more attention and emphasis. After that follow up with the other points.
Maintain a Strong Language
Your management summary should command and bring an air of authority to the readers. The tone used should be authoritative, assuring and affirmative. The reader should feel that they have confidence in you after reading the management summary.
Focus on Your Audience
Business plans are written for various purposes and audiences. If the plan is written to attract investors, then you should tailor your business plan to suit them. Since your main aim is to attract investors, ensure that you highlight the opportunities available for them to invest in your business. Make that opportunity look special and create a sense of urgency and scarcity in order to stimulate them to action.
In case you’re looking for financing, focus on the intricate details that a financier would love to see. This includes the financial projections, the return on investment (ROI) and the forecasted financial statements. They would also like to see the competencies and experience of the management team. Another aspect of interest to them will be the measures that you have put in place to mitigate and minimize risks.
If you convincingly highlight all the above, the financier would be inclined to finance your business.
Check the Flow
The flow of the management summary is quite significant. Ensure that you read it aloud to ascertain if the flow is correct. Determine if the points are well connected and clear to the reader. Have a second opinion by inviting your peers and your team to comment about the management summary. They may point out a few aspects that need consideration.
Review Your Management Summary with Your Team
A management summary needs superior writing skills like knowing how to write a good thesis. Just like any write-up, one cannot satisfy all writing criteria with just the first draft. It needs to be edited and reviewed to polish it up. This editing and review should be undertaken with the help of your team. They should participate in this review to confirm that the information written, especially about them, is accurate. They may also offer some viable suggestions to improve the summary.
Reviewing the management summary with your team instills a sense of teamwork and also fosters cohesion among the team members.
The management summary is an important section of your business plan. It is where you tell investors, financiers and shareholders about the human aspect of your business. It also shows the crucial aspects that have a bearing on the success of the business. Thus, it ought to be written superbly to improve your chances of getting support from the investors. The highlighted tips will surely help you write the best management summary for your business plan.
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