Part IV Chapter Sixteen Executive Summary Writing of Executive Summary focuses on these five aspects: Identify the purpose of the plan Show projected profitability Identify the objectives of the business Give the mission statement State keys to success Work on the exercises of FWons executive summary. Ithelps you understand these aspects. I. I. I. I. IdentifyIdentifyIdentifyIdentify thethethethe purposepurposepurposepurpose ofofofof thethethethe planplanplanplan The information need to include Business name Business location What product or service you sell Purpose of the plan Highlights of - management team and business partner - other competitive edge (if any). ExerciseExerciseExerciseExercise 1 1 1 1 findfindfindfind thethethethe elementselementselementselements inininin thethethethe followingfollowingfollowingfollowing paragraphparagraphparagraphparagraph ExecutiveExecutiveExecutiveExecutive summarysummarysummarysummary (sample(sample(sample(sample fromfromfromfrom FWonFWonFWonFWon s s s s BusinessBusinessBusinessBusiness Plan)Plan)Plan)Plan) FWon Corp. is an onlineclothes seller in China founded in 2006 with an initial capital of ￥1,000,000. In the effortof two years, we grow to be a medium onlineshopping enterprise with 100,000 registered users and generate ￥10,000,000 revenuewith ￥2,242,000 pre-tax profit, an ROI greater than 220% in 2008. PurposePurposePurposePurposeofofofof thisthisthisthis planplanplanplan Wepropose this plan to raise a fund of around ￥35 million for our try-on system so as to develop 1 million more registered users and ￥30 million revenue next year after good promotion and application of the system.The action should generate￥50 million pre-tax profit in theyear of 2011. The try-on system is to make it possible for our clients to try on clothes online before buying.Wehave already completed a related marketing research and developed the software system, the only thing we haveto do is to make the system known by more people and used by them, so that we can gain more customers and revenue on clothes-selling. Target market is anyone who wants to buy clothes online, especially those with higher income or those who have been referred to as white-collars.Wealso concentrateon female customers. Business name:_ Business location: _ What productor service to be sold: _ Purposeof the plan: _ AnyHighlights: _ Keys: Business name:FWon Corp. Business location: online platform in China What product or service to be sold:online clothing Purpose of the plan: Toraise ￥35 million for the try-on system development Highlights:Developed the software system for customers to tryon clothes online II.II.II.II. ShowShowShowShow projectedprojectedprojectedprojected profitabilityprofitabilityprofitabilityprofitability The information should contain Projected sales and profits Unit sales and profitabilityif possible (Sample(Sample(Sample(Sample fromfromfromfrom FWonFWonFWonFWon s s s s BusinessBusinessBusinessBusiness Plan)Plan)Plan)Plan) ProspectiveProspectiveProspectiveProspectiveofofofof thisthisthisthis businessbusinessbusinessbusiness China is the biggest clothing market in the world which has a capacity of ￥ 40 billion(in year 2008) and continues to rise despite the economic crisis last year. It was investigated that the average yearly consumption of each consumer on clothing is around ￥2,700 which is nearly7.3% of his/her revenueper year. The on-line clothes business shared nearly10% of theclothing market capacity. On-line-purchase is a commercial move that is easy to adopt. That is really good news for on-line enterprises such as FWon. Its also investigated that nearly 50% of online users do on-line shoppingmorethanonceamonth(shownasbelow). From the analysis above, on-line clothing selling is really a big and promising market which FWon focuses on. However, there are two things thathinder the developmentof this on-line business. One is the instabilityof the supply and the other is that buyers cant try the clothes on in on-line shopping, which reduces their consumption due to they may not be satisfied with their purchase sometimes.FWon has solved the first problem since we cooperated with popular and famous brands that guaranty the quantity and stability. Therefore, the main focus for us has been the second obstacle.Weare happy to say that our R&D team has found the solution, the 3D try-on system, which is the coreof this plan. With market opportunityand our technologyadvantage, we estimate we will develop 1 million more online members with the gross margin rate as 30% in the first year, 2009.There will be a continuous growth in our profitability for three years. GROSSGROSSGROSSGROSS PROFITPROFITPROFITPROFIT NETNETNETNET PROFITPROFITPRO