7.3.1. Characteristics and Criteria of The Summary: Executive
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ScribdTranslations7.3.1.
CHARACTERISTICS AND CRITERIA OF THE SUMMARY
EXECUTIVE
Although the characteristics of an executive summary of a project are not
too complicated, we tend to be so excited about ourplan of
businessthat we fall into certain mistakes when it comes toprepare a presentation
executiveto managers and investors. This cannot happen, as we depend on
this document to draw the attention of potential readers.
o A good summary is brief and concise. Keep in mind that the report
An executive summary is nothing more than a synthesis of your financial plan, so the reader must
to get a rough idea of the key points of it with just one
read. The maximum length of your summary should therefore not exceed two
pages.
o Objectivity is another of the main characteristics of a summary.
executive. It may be the most difficult for us, as it turns out to be somewhat
It's complicated not to show enthusiasm for the project we have in between.
hands. Although we must not lose this hook - after all,
we are selling ourbusiness ideawe have to explain the points
principles in the most objective way possible.
o The executive summary is schematic and visual, as it must be
structured by sections. To facilitate the reader's understanding, each of
These sections should refer to a specific idea of the project.
o Ourexample of an executive summary of a business plan must
present a formal style and simple language. In it, we talk about financing,
profitability and key concepts of our project; we cannot draft this
informally. However, the formality of the summary should not
to be confused, in no case, with the convoluted style.
o The executive report must be aesthetic and attractive, while also being functional. The
titles and subtitles - as well as the bolding of keywords and the choice of
colors are resources that will help us structure the information of our
summary. In this way, we will be able to give each piece of data the relevance that
they deserve.
7.3.2. INTEGRATION OF THE CARDS OR PAPERS OF
WORK OF STUDY AND MARKET FEASIBILITY,
TECHNICAL, ADMINISTRATIVE, FINANCIAL AND ECONOMIC
Technical Feasibility
It is an evaluation that demonstrates that the business can be launched and
to stay, showing evidence that it has been carefully planned,
considering the problems involved and keeping it operational.
Some aspects that need to be clarified are:
Proper functioning of the product or service (number of tests, dates...)
What has been done or will be done to stay close to consumers.
Production scales (it is possible to increase or decrease production).
Complementary projects to develop the project; how was it obtained or
Will the necessary technology be obtained? How will the staff at the facility be trained?
Are there alternative suppliers to those selected?
Economic feasibility
It must be shown that the project is economically feasible, which means that
The investment being made is justified by the profit that will be generated.
For this, it is necessary to work with a scheme that includes the costs and the
sales
Costs: The cost structure must be presented, considering fixed costs and
variables.
Sales: At this point, the price of the product or service is fundamental, since
determine the sales volume, so it should be briefly explained how it
it has defined this. Sales estimates (units and in should also be shown
money) for a period of at least 1 year, justifying how it has been calculated (a
through market research, previous statistics...)
Financial feasibility
Numerically summarize all the aspects developed in the business plan.
A list of all income and expenses of funds must be prepared.
wait for the project to be produced and arrange them chronologically. The horizon
the planning is the period during which the project will be valid and for the
how the cash flow is constructed and indicate its beginning and end. It is
It is important to use some financial indicators, such as:
Payback period (payback, paycash, payout or payoff): indicates the time it takes
the company will take time to recover the investment with the profit it generates
business (months or years).
Financial feasibility is calculated by adding net results to the amount of the
initial investment until reaching zero, in this case, the
"time value of money", for this reason it is also useful to calculate the payback period.
composed of a rate incorporated into the cash flow that reflects the
temporal differences.
The net present value (NPV) is the value of the investment at time zero,
after all your income and expenses have been deducted at a certain rate. Indicates a
amount representing the profit that could be taken in advance at
start a project, considering the established 'cut-off rate' (interest of
market, company's rate of return, rate chosen by the investor, rate
that reflects the opportunity cost.