People who read your business plan will already know a little bit about your business because they read your executive summary. For a business with a physical location, perhaps there aren’t any existing solutions within reasonable driving distance.
But this chapter is still hugely important because it’s where you expand on your initial overview, providing more details and answering additional questions that you won’t cover in the executive summary. Defining the problem you are solving for your customers is far and away the most critical element of your business plan and crucial for your business success.
The last key element of an executive summary that investors will want to see is the progress that you’ve made so far and future milestones that you intend to hit.
If you can show that your potential customers are already interested in—or perhaps already buying—your product or service, this is great to highlight.
If you can’t pinpoint a problem that your potential customers have, then you might not have a viable business concept.
Once you have described your target market’s problem, the next section of your business plan should describe your solution.
Investors will want to know what advantages you have over the competition and how you plan on differentiating yourself..
Competitors may not always come in the form of “direct competition,” which is when you have a competitor offering a similar solution to your offering.
Because your executive summary is such a critical component of your business plan, you’ll want to make sure that it’s as clear and concise as possible.
Cover the key highlights of your business, but don’t into too much detail.