Question

The executive summary of business plan should be prepared

• A. Before writing the entire business plan
• B. To describe the proposed business in detail
• C. So that it is at least 10 pages in length
• D. After you have written the entire business plan

Answer 1

The Correct Option is D

The correct answer to the question regarding when the executive summary of a business plan should be prepared is "After you have written the entire business plan."

1. Understanding the Role of an Executive Summary: The executive summary is a crucial section of a business plan that provides a brief overview of the entire document. It is intended to summarize key points, allowing readers to quickly grasp the business's purpose, strategy, and projected outcomes.
2. Logical Sequence in Business Plan Creation: Since the executive summary is a synopsis of the entire business plan, it logically should be written last. This approach ensures that all significant details from the complete plan—such as the business concept, financial forecasts, market analysis, and strategic initiatives—are accurately and comprehensively captured in the summary.
3. Comparison with Other Options:
   • "Before writing the entire business plan": Preparing the executive summary before the rest of the plan might lead to important details being omitted or misrepresented, as the full scope of the business information has yet to be defined.
   • "To describe the proposed business in detail": While the executive summary does touch upon key elements of the business, it is not intended to describe the business in thorough detail, but rather to summarize.
   • "So that it is at least 10 pages in length": There's no specific length for an executive summary; it should be concise, typically around 1-2 pages, focusing on summarizing vital information efficiently.

By preparing the executive summary last, you ensure that all aspects of the business plan are taken into account and appropriately reflected, making it an accurate and effective business tool for potential investors or stakeholders.