Getting it Right: How to Write a Winning Executive Summary

February 9, 2011

Clay

Research shows it only takes about 17 seconds to make a lasting impression. When you first meet someone, you only get a few glimpses of their personality, but it is enough to make you either want to learn more or to make you lose interest.

The Executive Summary works in a similar way.  It is the very first impression you give to a potential investor and the most important part of a business plan. So, how do you write a winning executive summary?

The main purpose of an executive summary is to explain your business in a clear and concise way.   Investors, CEOs, and lenders are busy and the executive summary may be the only thing they will ever read.  Tell the reader where your company is and where it’s headed, but most of all, show why you think your business will succeed.  Do not explain your entire plan, but highlight the key points.  Providing meaningless details is a mistake that small businesses often make.  Also, clear your vocabulary of superlatives and clichés; avoid using terms like “the best,” “groundbreaking,” “cutting-edge,” and “world class.”  Investors see these words too often; they hold no value and might make your project’s weaknesses much more evident. Be straightforward.

Photo credit: SXC, Brian Griesbaum

To make a powerful argument, you have to structure the summary in an organized way. A successful executive summary should have the following key elements:

  • a description of your company, including your products and/or services
  • your mission statement
  • your business’s management/the team
  • the market and your customer
  • marketing and sales plans
  • your competition
  • your business’s operations
  • financial projections and plans

To write the executive summary for your business plan, start by following the list above and writing one to three sentences about each topic.

Trying to describe your entire business in only a few pages isn’t easy, but if you wait until you have finished the business plan, the executive summary will practically write itself. Once you’re done, ask a friend or someone else to review it.  If they seem bored, or have no idea of what your business is about, then it will probably have the same effect on investors.

To view executive summary templates, and for additional information, visit TowsonGlobal’s Entrepreneurs Portal.

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Posted by Clay Hickson

VIDEO: Towson Global Helps Entrepreneurs Bring Dreams to Reality

February 2, 2011

Clay

TowsonGlobal-Business Incubator was featured earlier this week in a news segment on WJZ. The segment emphasized that despite the tough economic climate for starting a business, Towson University’s incubator makes it easier for entrepreneurs to gain access to the resources needed. The new Business Plan Competition was highlighted as was new member, Keffa Coffee. If you are interested in participating in the Business Plan Competition, don’t forget that Executive Summaries are due on February 7th.

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Posted by Clay Hickson

TowsonGlobal Announces Business Plan Competition!

November 4, 2010

Clay

Lots of people have innovative ideas, some of us just don’t know how to turn those ideas into money making businesses.  What if you had the chance to take your idea and WIN access to the resources you need to turn that idea into a successful business?  That opportunity is here.

To encourage small business growth and innovation, TowsonGlobal, Towson University’s Business Incubator, is launching an exciting new Business Plan Competition.  The grand prize winner will receive a 90-day Resident membership valued at $5,000 (includes office space, mentoring/advisory services and more), plus a CASH prize!

Competition entrants must be pre-start up or early stage innovative businesses or entrepreneurs who have a fairly well developed idea or technology and are interested in receiving support to develop the business. The competition is open to Towson University Faculty, Staff, Students, and the general business community.

Here’s how the Business Plan Competition will work:

  • Round 1: Entrants will submit a 3-5 page executive summary by February 7, 2011.
  • Round 2: Six finalists will be selected, and they will have one month to finalize their full business plans.
  • Round 3: The winner will be chosen on April 11 when finalists present their plans to a panel of university and business experts.

Business Plan Competition details, eligibility requirements, and timeline can be found under The Entrepreneurs Portal at www.towsonglobal.com.

Questions?  Attend one of the following information sessions to learn more about TowsonGlobal and the Business Plan Competition:

  • Thursday, November 11, 2:00 p.m.-3:00 p.m.
  • Wednesday, November 17, 5:30 p.m.-6:30 p.m.
  • Friday, December 3, 10:00 a.m.-11:00 a.m.

To RSVP for an information session call 410-769-6449 or email info@towsonglobal.com.

Wondering what should be included in your business plan?  Helpful information and templates can be found at TowsonGlobal’s Entrepreneurs Portal, a one-stop online resource for those looking to start and run their own business.

5 Comments | Business Analysis, Community Outreach, Education, Entrepreneurship, Events, International Business Development, News, Small Business Development, Students, Training, TU Faculty & Staff | Tagged: , , , , , , , , | Permalink
Posted by Clay Hickson

Options for Funding a Startup

October 21, 2010

Clay

You can’t wait to be America’s next successful entrepreneur and have come up with the perfect new business idea. That’s the easy part. The most difficult task? Finding the money you need to get things going. Fortunately, there are a number of options available to find the resource for turning your idea into a viable business, including:

 

1. Self Funding
If you choose to personally finance your business, you can tap into your savings, investment portfolio, mortgage refinancing and home equity loans, employer buyouts, and retirement funds. Be sure not to use all of your savings and keep an emergency stash for any unexpected expenses that may arise.

2. Family and Friends
This is often the easiest and most informal way to get funds other than using your personal savings. To avoid uncomfortable family reunions in the future, draw up a formal contract that clearly spells out terms, conditions, expectations, etc.  This is doubly important when dealing with those to whom you are closest.

3. Financial Institutions
Banks may loan you money if you have been in business for two years or more and usually look at the liquidity of your assets, company’s cash flow, and require tangible assets, like your home, as collateral. They look at how much and how quickly you can pay back, so funding may be limited.

Photo Credit: Dani Simmonds

4. Venture Capitalists and Angel Investors
VC’s usually have high performance standards, expect quick returns, and expect a share in the business. VC investments start at $250,000 and can go up to several millions.  Angel investors, although difficult to find, are friendly and patient about their investments and offer advice, experience, and guidance along the way. Investments may start at $25,000 and can go up to $1 million.

5. Strategic Investors
These investors usually look to integrate your product into their business.  It is usually one of the most convenient and quickest ways to enter the market, but they may keep you from doing business with their competitors, or try to change your business to their convenience.

6. Grants
Grants from government agencies or foundations can be a low-risk and low-commitment way to get funded. Although there is a lot of competition, winning a grant can increase recognition and funding opportunities in the future.

7. Credit Cards
While a few companies, like Google, funded themselves through credit cards and went on to become successful, this tool can be fairly risky. Jumping into a pool of consumer debt with little to no income could leave you open to ruining your credit, and will decrease your chances of attracting investors in the future.

Funds may be hard to find but there are options. Knowing what all the possibilities are will help you determine what works best for your situation.

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Posted by Clay Hickson

Should a Small Business Go Global?

August 31, 2010

Clay

I frequently hear people say that small companies, especially entrepreneurial ventures, should not be thinking about the global market place.  After all, they’re just a local company and need to be focusing on the home market, right?

Well, maybe, but in this age of globalization not considering the opportunities of international business could very well mean the difference between growth and stagnation.

Almost half of US businesses are predicted be involved in international trade by the year 2020, and US Department of Commerce data indicates that large companies currently sell only about 4% of US exports.  That means that 96% of exports are sold by smaller companies!

International business can be an important strategic option for small businesses.  It can open many new doors for success, but the key is determining why you want to get involved in international business.

Do you want to go global to:

  • Expand customer networks?
  • Gain exposure to new ideas and technology?
  • Find new ideas for global sourcing?
  • Or, just because everyone else is doing it?

A company’s motivation for pursuing international business can be very telling and help determine the likelihood of success.  Programs that are most likely to succeed are those that are planned for the long-term, and include market research, international relationships, and logistics arrangements.

International business can contribute to long-term growth of a small business, and also can enhance competitiveness.  By buying and selling internationally, a company can gain insights on customer requirements, competitor activity, and different ways of doing business.   Companies also may acquire new technologies, ideas, and partnerships from the process.

Once a company decides to go global, commitment from the management team is the number one determining factor of success. Management can show their commitment to an international program by setting aside funding, allotting time to manage the program, and assigning personnel to perform its tasks.

Taking advantage of international opportunities now is easier then it’s ever been.  The Internet and other modern communications technologies make the buying and selling of all types of products, services, inputs, and components a viable option for many businesses of all sizes, almost anywhere in the world.

For information on how TowsonGlobal can help your business take advantage of international opportunities, check out www.towsonglobal.com.

Photo Credit: Barun Patro

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Posted by Clay Hickson

What’s in Your Food?

August 9, 2010

Clay

“Do you really know what you ate today?” Natural Check, LLC dares to answer this sometimes unnerving question by making the science of water and food testing easily accessible.

This innovative startup company, and member of the TowsonGlobal Incubator, provides fast, affordable and reliable methods to screen for unacceptable compounds in the food and water supplies. For example, the company has developed a lab-based test for the detection of artificial growth hormones in beef and offers a rapid field test for antibiotics in milk.  Additional tests are under development in partnership with labs from around the world.

NaturalCheck also supplies water testing kits and is striving to build community awareness through city-specific “What’s in my water…” Facebook fan pages created for cities like Baltimore, DC, Los Angeles, and New York.  In addition, the company offers the BRIX Meter, which helps determine the nutritional quality of fruits and vegetables.

Similarly, NaturalCheck, through its AuthentiCheck division, is on the forefront, developing and distributing new technologies to protect manufacturers, retailers and consumers from often unsafe counterfeit products. The technologies offer two important services—authenticating products and tracking and tracing the movement of products through the supply chain—and are suitable for textiles, packaging, pharmaceuticals, and many other products.

NaturalCheck was founded by Larry Bohlen, former NASA engineer, international environmental advocate and food safety entrepreneur.  His experience has taught him that testing and sharing the results can be a powerful tool for facilitating real change.


3 Comments | Business Analysis, Community Outreach, Education, Entrepreneurship, International Business Development, News, Small Business Development | Tagged: , , , , , , , , , , , , , , , , | Permalink
Posted by Clay Hickson

CrowdPitch: A Great Way to Support Startup Companies

July 6, 2010

Clay

On June 16, 2010, TowsonGlobal collaborated with Funding Universe to bring CrowdPitch to Towson University. The event gathered more than 70 entrepreneurs and investors in an entertaining and dynamic setting, where selected companies were given four minutes to pitch their ideas to a panel of experts and a live audience.  A brief, three-minute Q&A session followed the presentation, in which the entrepreneurs were able give more in-depth information about their business plans. Audience members also received $100 in “fun money,” which they could use to “invest” in the company of their choice at the end of the program.

As many as 55 companies applied to participate in the free event, but only five were selected to present:  ArtiNNet Corp., MYiLIVE. Port Networks, Tots2Tweens, and WinTheTrophy.  The winner was selected based on the number of votes received from the audience and the panel of judges:  Dave Troy, Baltimore Angels; Rick Faint, Evergreen Capital; Laura Gamble, Skipjack Partners; and  Adam Suri, Maryland State Department of Economic Development.

The Pitchers

The “pitchers” were ArtiNNet with VoicePass, mobile software that uses voice recognition security; MYiLIVE, a personalized boutique shopping website; Port Networks, smart WiFi technology; Tots2Tweens, a web directory for parents; and WinTheTrophy, a legal sports betting and social gaming site.  All presenters were well prepared, eloquent and very passionate about their ideas and most received positive feedback from the panel.  In the end, ArtiNNet won and received $8800 worth of prizes, including accounting/financial services, startup support counseling, Amazon web services, and will be profiled in FundingUniverse’s newsletter that is distributed to 120,000 subscribers.

TowsonGlobal Involvement

 

TowsonGlobal’s staff also participated in the event and got the opportunity to interact with all attendees. “ This is the first time I have been to an event like this.  I was excited to be a part of it.  Now I understand how hard it is to find investors and get a business going!” says intern Lissell Paredes.  Intern Aaron Robinson adds “It was very informative; I didn’t know events like these existed and I’m glad I got to experience it.”

“Overall, CrowdPitch was a learning experience for everyone present, a convenient way to get advice from experts, and a great opportunity to build connections,” says TowsonGlobal Director Clay Hickson.

To see if a CrowdPitch event is coming to a city near you, click here!

CrowdPitch at Towson University

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Posted by Clay Hickson

TowsonGlobal…in Residence

June 9, 2010

Clay

Neighborhoods, ideally, are social communities with considerable face-to-face interaction among residents. Neighbors often act as a resource or offer support when it’s needed the most.  What about in the business world?  It’d be nice to be able to walk next door and find invaluable resources at your disposal, especially for the small business owner looking to expand in this tough market.

Many business incubators provide a whole host of services for start-up ventures such as facilities, workshops, counseling, networking and organizational support, but there is more. TowsonGlobal, Towson University’s International Incubator, goes even further by providing both Resident and Associate member companies access to a variety of in-residence experts that provide creative, inexpensive, and effective counsel necessary to succeed.

Among the good neighbors “residing” at TowsonGlobal are:

CFO-in-Residence
Carol L. Coughlin
CEO/Founder, BottomLine Growth Strategies, Inc.
Attorney-in-Residence
Steven Tiller
Attorney at Law, Whiteford, Taylor, Preston, LLP
Entrepreneur-in-Residence
J. Gary McDaniel
President & Board Member (former), TerraWatt Power, LLC
VP Sales-in-Residence
Scott B. Turnbaugh
President/Founder, Eagles View Consulting LLC
  • The CFO-in-Residence advises on financial and accounting questions, and assists with many strategic business issues.
  • The Attorney-in-Residence counsels on a broad range of legal topics from contractual issues to intellectual property rights protection.
  • The Entrepreneur-in-Residence assists with a variety of strategic issues, including business plan fine-tuning or strategies and contacts for those seeking investment funding.
  • The VP Sales-in-Residence helps in navigating sales challenges, ranging from exploring new sales opportunities to building and managing a sales team.

Tapping into the one-on-one support such specialists as these who have years of experience in numerous fields and industries can make a tremendous difference!

To find out how you can become a member of the TowsonGlobal neighborhood, check out www.towsonglobal.com.

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Posted by Clay Hickson

Focus Groups for Entrepreneurs

May 10, 2010

Clay

In the marketing world, focus groups are a way of reaching out to existing or potential customers for feedback.  Companies of all sizes often use focus groups to improve an existing product or service or to test new ideas.  These facilitated discussions of 6-10 people can elicit a great deal of valuable information.

For start-up companies, focus groups can be a particularly powerful tool for evaluating new ideas, products or services before they are put on the market, avoiding costly missteps.

Developing new products can be very expensive, and focus group research can remove some of the risks by saving you from wasting time and money on ideas that won’t fly and by helping you strengthen good ideas.  If conducted properly, focus groups can uncover many diverse insights from participants into how the product may potentially be viewed and can aid in development of marketing strategies that will most effectively address customer needs.

Take a look at this video describing how Domino’s Pizza used focus groups to learn what needed to be improved about their pizza.

In many cases, companies use outside resources to coordinate focus group research; the cost for which typically can be $3,000-$6,000.  This may seem expensive for a small business, but compared to other research methods, it can be relatively economical.  For those who can’t justify the expense, there may be ways to reduce the overall cost of conducting a focus group.  For example:

  • Holding the session(s) in your own meeting space can save the expense of using specialized facilities; just make sure that the space is comfortable and private.
  • Using someone from inside the company as facilitator instead of an outside consultant may be cost effective; chose a person adept at leading discussions and keeping the group focused on the objective.
  • Having an internal scribe make notes of and summarize the meeting can save money, but the person(s) must be sure to capture the numerous thoughts and ideas from the discussion that will direct the efforts to move forward on the issue.
  • Analyzing the data internally also could save a significant sum; however, the risk of biased reporting, can make having an outside source analyze the data a worthwhile investment.

While there are options for cutting corners when conducting marketing research, there also are aspects on which the firm does not want to skimp.  The most important elements of a focus group are the participants.  You do not need to pay large fees, but some small level of compensation for participants’ time and ideas is required.  Also, make sure you have the right audience (people without the proper background or interests will provide useless or distorted information).

Check out these links for more tips:

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Posted by Clay Hickson

Do I Need a Business Mentor?

April 6, 2010

Clay

Starting and running a business can be daunting, but you don’t have to go through it all alone.  Even before you launch your business, it probably is a good idea to find a mentor or two, someone more experienced who can serve as a trusted advisor over an extended period of time and who can provide guidance and input that will help minimize the likelihood of making many common mistakes.

The mentor can help brainstorm and strategize, can provide an important third-party perspective, can challenge deep-rooted but perhaps misplaced views, can offer support and motivation through difficult periods, and can give constructive feedback.

The mentor should be someone who suits you and your circumstances.  The right mentor can make all the difference, so how do you find that person?  Here are some suggestions:

  1. Look at your network of contacts:  friends, family, former colleagues, college professors, SCORE, business associations, chambers of commerce, or other sources.  A business incubator like TowsonGlobal also has may have an advisory board or entrepreneur-in-residence who can provide in-house mentoring.
  2. Choose a mentor in the same field as you who or someone who is aware of many of the specific issues that might arise in your field and can uncover hidden challenges.
  3. Choose a mentor who can talk to you about their mistakes (and successes) and will share what they have learned.  This can help advance you more quickly along the learning curve.
  4. Choose a mentor who has a network that will expand important contacts in your industry.  Having access to the right people early on can help make things happen more rapidly.
  5. Choose a mentor who has no ulterior motive, no service or product to sell you.  You need someone you can trust, with whom you are comfortable sharing your hopes and fears.
  6. Don’t view it as only a one-way relationship; be willing to reciprocate and share your own insights, contacts and opportunities.

Once you have found your mentor, be willing and prepared to listen and seriously consider their advice; otherwise they won’t be sticking with you for long.  Ultimately, their counsel could make all the difference in the world.

Jill Blashack Strahan was a small business owner with a struggling gift basket company in Minnesota.  She counseled with her mentor as she was trying to figure out how to be more successful.  Jill said her goal was to make $30,000 a year but was advised that not only had she set her sights too low, but she was focusing on the wrong thing.  She should focus on her passion not the money.  During many of the rough times, Jill thought of giving up, but then she remembered her mentor’s advice to focus on her dream.  She did that, and today Jill’s company, Tastefully Simple, is a direct-sales business with $120 million in sales.

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Posted by Clay Hickson

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