executive summary vs business plan

Business Plan and Executive Summary: Business Plan vs: Executive Summary: Understanding the Difference

1. introduction to business planning, 2. the anatomy of a business plan, 3. a snapshot of your vision, 4. the components of an executive summary, 5. how the business plan and executive summary complement each other, 6. tailoring your executive summary for different audiences, 7. common mistakes to avoid in business plans and executive summaries, 8. synthesizing your strategic blueprint.

In the realm of entrepreneurship and corporate strategy, the blueprint of a company's vision, goals, and pathways to success is encapsulated within its business planning process . This meticulous planning goes beyond mere financial projections; it is the narrative that weaves together market analysis, competitive landscape, operational strategies, and potential pitfalls. It serves as a compass for decision-making and a communication tool for stakeholders.

1. Market Analysis : A cornerstone of business planning is understanding the market . For instance, a startup aiming to disrupt the home automation industry would conduct a comprehensive analysis of current trends, customer demographics, and potential growth. They might find that while the market is ripe for innovation, consumer concerns about data privacy are paramount.

2. Competitive Landscape : Knowing one's competitors is crucial. A business plan should detail a comparative analysis, highlighting strengths and weaknesses. Consider a new entrant in the e-commerce space, analyzing giants like Amazon and niche players alike to carve out a unique value proposition.

3. Operational Strategies : The operational plan outlines the day-to-day running of the business. For a manufacturing firm, this could involve a step-by-step guide from sourcing raw materials to product delivery, ensuring efficiency and quality control at every stage.

4. Financial Projections : Financials are the quantitative reflection of the business plan. A tech startup might project a significant burn rate initially, with a detailed path to profitability through scaling operations and diversifying revenue streams .

5. Risk Assessment : Identifying potential risks and mitigation strategies is a sign of a robust business plan . A mobile app developer, for example, would consider the risk of technological obsolescence and counter it with a plan for continuous innovation and updates.

Through these lenses, the business plan diverges from the executive summary, which distills the essence of these elements into a concise, compelling narrative designed to capture the interest of investors and partners. While the executive summary is the hook , the business plan itself is the detailed story that needs to be told.

Introduction to Business Planning - Business Plan and Executive Summary: Business Plan vs: Executive Summary: Understanding the Difference

In the realm of strategic business development , a meticulously crafted blueprint serves as the cornerstone for guiding an enterprise's trajectory. This blueprint, often misconstrued as a mere formality, is in fact a dynamic document that encapsulates the essence of the business's vision, operational strategies, and financial projections. It is a comprehensive dossier that not only delineates the path to be trodden but also anticipates potential challenges and devises preemptive strategies to navigate them.

1. market analysis : A thorough market analysis lays the groundwork for understanding the competitive landscape . For instance, a startup aiming to disrupt the food delivery sector would conduct a deep dive into current market trends, customer demographics, and competitor strategies. This section would include:

- market size and growth projections.

- customer segmentation and target market identification .

- Competitive analysis, highlighting direct and indirect competitors.

2. Organizational Structure : Here, the focus shifts to the internal anatomy of the business. A clear organizational chart and roles description ensure that stakeholders understand the governance of the company. For a tech startup, this might involve:

- Defining the roles of the founding team and key management personnel.

- Outlining the legal structure, such as a partnership or corporation.

- Describing the advisory board or external consultants, if applicable.

3. Products and Services : This section is dedicated to the offerings that form the revenue backbone of the business. A mobile gaming company, for example, would detail:

- Game portfolio and roadmap for future releases.

- unique selling propositions (USPs) and differentiation factors.

- Monetization strategies, including in-app purchases and advertising models.

4. marketing and Sales strategy : A robust marketing and sales strategy is pivotal for business growth. A B2B software provider might include:

- Positioning statement and branding strategy.

- sales funnel and customer acquisition tactics.

- key performance indicators (KPIs) for measuring marketing effectiveness .

5. Financial Projections : The financial section projects the fiscal health and viability of the business. A detailed financial model for an e-commerce platform could encompass:

- Revenue forecasts and cost structure analysis .

- break-even analysis and cash flow projections.

- Funding requirements and investment strategies.

Each element within this blueprint is interlinked, creating a cohesive narrative that not only persuades investors but also serves as a navigational tool for the management team. It is the synthesis of these components that distinguishes a business plan from an executive summary , the latter being a distilled version of the former, crafted to capture the essence of the business in a succinct and compelling manner. The executive summary, therefore, is not just an introduction but a strategic snapshot designed to pique interest and invite deeper exploration of the business plan's detailed anatomy.

The Anatomy of a Business Plan - Business Plan and Executive Summary: Business Plan vs: Executive Summary: Understanding the Difference

In the realm of strategic business planning , the distillation of a company's essence and its forward trajectory into a concise and compelling narrative is paramount. This narrative serves as a beacon for potential investors, partners, and stakeholders, encapsulating the core objectives and strategies that define the organization's path to success. It is within this narrative that the vision of the company is crystallized, offering a glimpse into the innovative solutions and value propositions that set the venture apart in a competitive landscape.

1. Purpose and Clarity : At the outset, the narrative must articulate the company's mission with unequivocal clarity. For instance, a tech startup might state, "Our mission is to revolutionize the way individuals manage their personal finances through AI-driven insights and user-friendly interfaces ."

2. Strategic Objectives : Following the mission, strategic objectives outline the steps to achieve the vision. A biotech firm could delineate objectives such as, "Short-term, we aim to secure FDA approval for our novel drug delivery system . Long-term, our goal is to become a leader in personalized medicine."

3. Market Analysis : A thorough market analysis demonstrates an understanding of the competitive environment. A company specializing in renewable energy might note, "With a 10% annual growth in the solar energy sector, our innovative photovoltaic solutions position us to capture a significant market share."

4. unique Selling proposition (USP) : The USP highlights what distinguishes the company. A gourmet food delivery service could emphasize, "Our USP lies in sourcing local, organic ingredients and providing a farm-to-table experience in the convenience of your home."

5. Financial Projections : Realistic financial projections instill confidence. A mobile gaming company might project, "Based on current market trends, we forecast a 150% increase in revenue within the first two years post-launch."

6. Milestones and Metrics : Clear milestones and metrics measure progress . A construction company could specify, "By Q4, we aim to complete the infrastructure of the new eco-friendly residential complex, with a 95% occupancy rate within six months of completion."

7. Team and Leadership : The expertise and experience of the leadership team are crucial. A cybersecurity firm might boast, "Our executive team, with over 50 years of combined experience in cybersecurity, is equipped to navigate the evolving threats in digital security."

Through these elements, the narrative not only conveys the ambition and potential of the business but also substantiates the vision with tangible, actionable insights. It is a snapshot not just of what the company aspires to become, but also of the strategic blueprint that will guide its journey there. This narrative becomes the cornerstone of both the business plan and the executive summary , bridging the gap between a company's present state and its envisioned future.

A Snapshot of Your Vision - Business Plan and Executive Summary: Business Plan vs: Executive Summary: Understanding the Difference

When considering the essence of a business plan , the executive summary plays a pivotal role , serving as a gateway to the reader's understanding and interest. It encapsulates the core elements of the business plan , providing a snapshot that conveys the business's mission, the path to its objectives, and the potential for success. This segment is not merely a surface-level overview but a strategic component that distills complex ideas into a concise and compelling narrative.

1. mission Statement and vision : The mission statement articulates the company's purpose, while the vision casts a future of what the company aspires to achieve. For instance, a tech startup's mission might be to "simplify life through technology," with a vision to be "at the forefront of smart home innovation ."

2. Business Objectives : Clear, measurable goals are outlined, such as "achieving 25% market share within two years" or "launching three new products by Q4."

3. Products or Services : A description of the offerings, highlighting unique selling points and value to customers. For example, a description might read, "Our software leverages AI to provide personalized learning experiences ."

4. Market Analysis : Insight into the market size, growth projections, and target demographics. An analysis might reveal, "The e-learning market is projected to grow by 15% annually, with our target demographic being college-educated adults aged 25-40."

5. Strategy and Implementation : How the business plans to achieve its goals , including marketing strategies and operational plans. A strategy section could state, "We will employ a direct-to-consumer model, leveraging social media marketing to increase brand awareness."

6. Financial Projections and Needs : An overview of projected revenues, profits, and capital requirements. This might include statements like, "We project a revenue of $2M in the first year, with an initial investment need of $500K."

7. Management Team : Profiles of key team members , emphasizing their expertise and role in driving the company's success. An example profile might highlight, "Jane Doe, our CEO, brings a decade of experience in the AI industry."

Each component is interwoven to present a narrative that resonates with potential investors or stakeholders, demonstrating the business's viability and the team's capability to execute the plan. The executive summary is not just a dry recitation of facts; it's the story of the business told with clarity and conviction. It's where the heart of the business plan beats the strongest, compelling the reader to dive deeper into the full document.

The Components of an Executive Summary - Business Plan and Executive Summary: Business Plan vs: Executive Summary: Understanding the Difference

In the landscape of strategic business documentation, the interplay between a comprehensive business plan and its executive summary is pivotal. While the former provides a detailed blueprint of the company's vision, objectives, strategies, and operational tactics, the latter distills this information into a concise, compelling narrative designed to capture the essence of the business for stakeholders. The synergy between these two elements is critical; the executive summary acts as a gateway, enticing readers to delve deeper into the business plan, while the business plan itself offers the substance and detail that the executive summary summarizes .

1. Purpose Alignment : Both documents serve to articulate the business's purpose and direction, yet their functions differ. The executive summary is a hook; its aim is to engage and persuade, often being the first (and sometimes only) section read by investors. The business plan, conversely, is the flesh to the executive summary's bones, providing the full story behind the teaser.

2. Audience Consideration : The executive summary must be tailored to the audience's level of expertise and interest. For a venture capitalist, it might highlight financial projections and growth potential, whereas for a partner company, it might focus on strategic alignment and mutual benefits. The business plan, however, remains unchanged, a constant reference that supports any claims made in the executive summary.

3. Detail and Brevity : The executive summary is brief and to the point, often no longer than a page. It's the elevator pitch of the business world . In contrast, the business plan is expansive, covering every aspect of the business in detail, from market analysis to financial plans.

For instance, consider a tech startup seeking investment. The executive summary might boldly state, "Our innovative AI platform will revolutionize the way businesses interact with customers, projected to capture 15% market share within three years." The business plan would then substantiate this claim with market research, competitive analysis, technical specifications, and detailed financial projections.

In essence, while the executive summary and the business plan are distinct entities, they are complementary, each enhancing the effectiveness of the other. The executive summary draws readers in, and the business plan keeps them informed, together presenting a holistic view of the business's potential and plan for success.

How the Business Plan and Executive Summary Complement Each Other - Business Plan and Executive Summary: Business Plan vs: Executive Summary: Understanding the Difference

When constructing the pivotal segment of a business document, it's essential to recognize that the executive summary is not a one-size-fits-all component. The essence of this section lies in its adaptability; it must be meticulously crafted to resonate with the specific audience it addresses. Whether it's potential investors, partners, or internal stakeholders, each group has distinct concerns and interests that must be acknowledged and addressed.

1. Investors: They are primarily interested in the return on investment (ROI), growth potential, and risk assessment. For instance, when tailoring the summary for investors, highlight the market opportunity, competitive advantage, and financial projections. Use data-driven examples, like a projected 20% market share capture within the first two years, to substantiate claims.

2. Partners: Potential partners might be more concerned with the operational aspects, synergy, and strategic alignment. Here, focus on how the business model complements theirs and the mutual benefits. An example could be a strategic alliance with a tech company that could enable a 30% reduction in operational costs through improved logistics.

3. Internal Stakeholders: Employees and management often look for the company's vision, culture, and sustainability. Emphasize the long-term strategy , employee development plans, and corporate social responsibility initiatives . For instance, a commitment to zero carbon emissions by 2030 would demonstrate a sustainable approach to business growth .

By understanding the priorities of each audience, the executive summary becomes a powerful tool to engage and persuade, setting the stage for a successful business plan. Remember, the goal is to pique interest and invite deeper exploration of the full business plan, not to disclose every detail upfront. Each version should be a standalone document that, while consistent in core content, is framed to address the unique concerns and interests of its intended readership.

Finding the right investors is the first step to getting funded!

FasterCapital matches your startup with potential investors who are interested in the industry, stage, and market of your startup

When embarking on the journey of crafting a business plan or an executive summary, it's crucial to navigate the common pitfalls that can undermine the effectiveness of these documents. Both serve distinct purposes and require a nuanced understanding to ensure they complement each other while standing strong on their own merits.

1. Overlooking the Audience : Tailor your language and details to the audience. A technical investor might appreciate jargon, while a layperson would prefer simplicity.

2. Excessive Length : Keep it concise. An executive summary should be a snapshot, not a deep dive. Aim for one page, two at most.

3. Lack of Clarity : Avoid ambiguity. Clearly define your business model , market position, and value proposition. For example, instead of saying "We offer world-class services," specify "Our 24/7 IT support ensures a 99.9% uptime for our clients' critical systems."

4. Ignoring Competitors : Acknowledge the competition. A business plan devoid of competitive analysis may seem naive. Detail how you differ and what gives you the edge.

5. Financial Over-optimism : Be realistic with projections. Overestimating market size and growth can lead to skepticism. Ground your numbers in research and present conservative, realistic, and optimistic scenarios.

6. Underestimating Costs : Don't downplay expenses. Unexpected costs arise, so include a contingency budget. For instance, if you're opening a cafe, factor in not just the cost of ingredients but also maintenance, staffing, and equipment replacement.

7. Omitting Key Milestones : Highlight progress. Show what you've achieved and what's next. This demonstrates momentum and a clear path forward .

8. Vague Marketing Strategies : Define your approach. Rather than a broad statement like "We will use social media for marketing," detail the platforms, content types, and target demographics.

9. Neglecting the Ask : Be clear about what you need. Whether it's funding, partnerships, or resources, state it plainly. "We seek a $200,000 investment to expand our product line , expecting a 20% market share increase within two years."

10. Forgetting to Update : Keep it current. As your business evolves, so should your documents. Regular updates reflect ongoing development and adaptability.

By sidestepping these missteps, you position your business plan and executive summary as compelling, informative, and strategically sound documents that can effectively guide your venture and impress potential stakeholders. Remember, the goal is to paint a clear, realistic picture of your business that aligns with the expectations and needs of your audience.

Common Mistakes to Avoid in Business Plans and Executive Summaries - Business Plan and Executive Summary: Business Plan vs: Executive Summary: Understanding the Difference

In the culmination of a strategic blueprint, the convergence of foresight and planning crystallizes into a coherent narrative that propels a business forward. This final synthesis is not merely a summary but a distillation of the essence, capturing the core objectives and strategies that will guide the organization's trajectory. It is here that the meticulous planning and detailed analysis conducted throughout the business planning process are woven into a tapestry that showcases not only where the business intends to go but also how it plans to get there.

1. Strategic Alignment : Every element of the plan must align with the overarching vision and mission of the company. For instance, if a tech startup's vision is to democratize access to education through technology, its strategies might include developing scalable e-learning platforms, forging partnerships with educational institutions, and continuously innovating its product offerings.

2. Resource Allocation : A clear outline of how resources—financial, human, and technological—will be allocated is crucial. Consider a manufacturing firm that plans to expand its product line; it must detail the investment in new machinery, the hiring of skilled personnel, and the research and development efforts required.

3. Risk Management : Identifying potential risks and devising mitigation strategies is essential. A company entering a new market might face risks such as cultural misalignment or regulatory challenges. Addressing these in the plan, perhaps through local partnerships or compliance expertise, is key.

4. Performance Metrics : Establishing measurable goals and performance indicators ensures that progress can be tracked and strategies adjusted as necessary. A service-based business could set customer satisfaction scores and repeat business rates as key metrics .

5. Contingency Planning : The blueprint should include contingency plans for unforeseen events. For example, a global trading company might have alternate supply chain routes in case of geopolitical tensions affecting trade corridors.

6. Stakeholder Communication : The plan should articulate how it will communicate with stakeholders to keep them informed and engaged. A non-profit organization might schedule regular updates to donors and volunteers on project impacts and challenges.

7. Execution Timeline : A realistic and detailed timeline for the execution of various strategies brings clarity and urgency to the plan. A mobile app development company might outline a phased rollout, with beta testing in Q1, a soft launch in Q2, and full market release in Q3.

By integrating these perspectives, the final segment of a business plan transcends a mere summary; it becomes a dynamic and actionable guide that not only encapsulates the business's aspirations but also charts a clear path for achieving them. Through illustrative examples and a multi-faceted approach , this synthesis ensures that the strategic blueprint is not just a document but a living framework that evolves with the business.

Synthesizing Your Strategic Blueprint - Business Plan and Executive Summary: Business Plan vs: Executive Summary: Understanding the Difference

Read Other Blogs

If you are a healer, therapist, or wellness practitioner, you know how rewarding it is to help...

In the realm of modern business, a transformative approach is reshaping the landscape: the...

In the realm of customer feedback, the method of convening a moderated conversation with a selected...

Email marketing stands as a cornerstone in the realm of passive income strategies, primarily due to...

As a parent, you want to provide the best care for your child, and sometimes that means hiring a...

Asset benchmarking is a process of measuring and comparing the performance, quality, and value of...

An e-Learning startup is a company that offers online courses that can be accessed and completed by...

In the fiercely competitive marketplace of today, differentiation stands as the cornerstone of a...

Ensuring that a business is compliant with first aid regulations is not just a legal mandate but...

Home » Education » Difference Between Executive Summary and Introduction

Difference Between Executive Summary and Introduction

Main difference – executive summary vs introduction.

An executive summary is a brief, concise summary of a content of a long report or document. An introduction is one of the essential elements of a text that is found at the beginning of a text. The main difference between executive summary and introduction is their purpose. An executive summary provides a condensed version of the main text, enabling the readers to understand the full content of the main text by reading the summary. An introduction explains what the text is about and why it is written. 

1. What is an Executive Summary      – Definition, Purpose, Features, Content

2. What is an Introduction      – Definition, Purpose, Features, Content

What is an Executive Summary

An executive summary is a condensed form of a content of a long report. Executive summaries are mainly used in the business world and are not very different from other types of summaries . They include the problem/proposal of the document, background information, brief analysis and the conclusions . A person who doesn’t have time to read the main document will be able to read and understand the content of it by reading the executive summary. Although executive summary is shorter than the main document, it can be as long as 10 pages depending on the length of the main document. 

Given below are some major characteristics of an executive summary.

• Executive summaries should be no more than 10% of the main document.
• They should only include information that is already in the main document.
• They can be read separately from the main document.
• They should be written in brief, concise paragraphs.
• They should be written in a language that is appropriate for the target audience.
• They should include recommendations, justification, and conclusions.

What is an Introduction

The introduction is found at the beginning of books, documents , reports, essays  or other texts. It is a very common and one of the essential elements of a text. This is the part that explains what the document is going to be about. In simple words, it introduces the text to the readers. An introduction may contain some background information about the document, thesis statement, aims or purpose, and an outline of the central issues. Some introductions may also define terms and technical concepts and outline the structure of the paper.

The introduction may also vary according to the type of document you are preparing. For example, the introduction in a book and the introduction in an essay are very different from each other.

Executive Summary: An executive summary provides a condensed version of the main document. 

Introduction: An introduction introduces the document and explains what the document is about.

Executive Summary: One can understand the gist of a text by reading the executive summary.

Introduction: One cannot understand the content of a text by merely reading the introduction.

Executive Summary:  Executive summaries contain all important elements of the main text including recommendations and conclusions.

Introduction: Introductions may contain a background information, thesis statement, aims, outline of central points, definition of terms and structure of the text.

Separate Document

Executive Summary: Executive summaries can be read as separate documents.

Introduction: Introductions cannot be read as separate documents.

Image Courtesy: PEXELS

About the Author: Hasa

Hasanthi is a seasoned content writer and editor with over 8 years of experience. Armed with a BA degree in English and a knack for digital marketing, she explores her passions for literature, history, culture, and food through her engaging and informative writing.

​You May Also Like These

Leave a reply cancel reply.

Mission Statement Vs. Executive Summary

Think of your mission statement as a statement of why you are starting your company and the executive summary as a statement of how your company will operate. The mission statement describes your vision and the executive summary is a concise outline of the contents of your business plan. The mission statement gives direction to your planning efforts and the executive summary is a marketing document to be used in attracting investors.

Writing a Business Plan

Your business plan is a serious, factual description of your business model, marketing model, revenue model, operations model, build-out and financial projections. In the introduction or company description section, many people include a mission statement. Although it is not necessary to the business plan document, creating a mission statement is an exercise that serves to give direction to the business planning process because it defines a company's character -- its reason for being.

Advertisement

Article continues below this ad

Mission Statement

More for you, how to write an executive summary on a marketing plan, how to disable an intel wireless adapter on a wired connection, what is the purpose of a business model, what is pioneering advertising, how to remove logitech quickcam driver.

The mission statement is a sentence or, at longest, a paragraph that concisely outlines the character of your company and its goals. Start by defining what your company does, who it serves, why it operates the way it does, how it competes in its industry and what goals it is expected to meet. Your mission statement is the only place in a business plan where superlatives such as best, most successful, largest and premier are acceptable. Your mission statement describes what you want your customers to see in your company.

Executive Summary

An executive summary is approximately one page long and briefly outlines the main points of the business plan. It is used as a stand-alone summary that can be presented to potential investors, partners, service providers and customers to give them an idea of what the company does, how it operates, its expectations and its needs. Its purpose is to entice the reader to ask to see the entire business plan.

Brand Messaging

Your mission statement is the beginning of your brand messaging -- how you present your enterprise to the consumer. It creates the image that your marketing will convey through customer relations, business development and advertising. It provides the vision of the founders of the company in a concise statement that creates company culture and customer interaction, and can be interpreted into print and graphics. The executive summary is a quick overview of the business model, revenue model and financial projections -- it is function while the mission statement is image.

• Small Business Association: Writing a Business Plan
• Entrepreneur.com: Elements of a Business Plan
• Entrepreneur.com: How to Write Your Mission Statement

Victoria Duff specializes in entrepreneurial subjects, drawing on her experience as an acclaimed start-up facilitator, venture catalyst and investor relations manager. Since 1995 she has written many articles for e-zines and was a regular columnist for "Digital Coast Reporter" and "Developments Magazine." She holds a Bachelor of Arts in public administration from the University of California at Berkeley.

• Product overview
• All features
• Latest feature release
• App integrations
• project icon Project management
• goal icon Goals and reporting
• asana-intelligence icon Asana AI
• workflow icon Workflows and automation
• portfolio icon Resource management
• my-task icon Admin and security
• list icon Personal
• premium icon Starter
• briefcase icon Advanced
• Small business
• Goal management
• Organizational planning
• Project intake
• Resource planning
• Product launches
• View all use cases arrow-right icon
• Help Center
• Asana Academy
• Certifications
• Work management hub
• Customer stories
• Get support
• Developer support
• Customer Success

Project plans

• Team goals & objectives
• Team continuity
• Meeting agenda
• View all templates arrow-right icon
• Project planning |
• How to write an executive summary, with ...

How to write an executive summary, with examples

The best way to do that is with an executive summary. If you’ve never written an executive summary, this article has all you need to know to plan, write, and share them with your team.

See Asana in action

Drive clarity and impact at scale by connecting work and workflows to company-wide goals.

What is an executive summary?

An executive summary is an overview of a document. The length and scope of your executive summary will differ depending on the document it’s summarizing, but in general an executive summary can be anywhere from one to two pages long. In the document, you’ll want to share all of the information your readers and important stakeholders need to know.

Imagine it this way: if your high-level stakeholders were to only read your executive summary, would they have all of the information they need to succeed? If so, your summary has done its job.

You’ll often find executive summaries of:

Business cases

Project proposals

Research documents

Environmental studies

Market surveys

In general, there are four parts to any executive summary:

Start with the problem or need the document is solving.

Outline the recommended solution.

Explain the solution’s value.

Wrap up with a conclusion about the importance of the work.

What is an executive summary in project management?

In project management, an executive summary is a way to bring clarity to cross-functional collaborators, team leadership, and project stakeholders . Think of it like a project’s “ elevator pitch ” for team members who don’t have the time or the need to dive into all of the project’s details.

The main difference between an executive summary in project management and a more traditional executive summary in a business plan is that the former should be created at the beginning of your project—whereas the latter should be created after you’ve written your business plan. For example, to write an executive summary of an environmental study, you would compile a report on the results and findings once your study was over. But for an executive summary in project management, you want to cover what the project is aiming to achieve and why those goals matter.

The same four parts apply to an executive summary in project management:

Start with the problem or need the project is solving.  Why is this project happening? What insight, customer feedback, product plan, or other need caused it to come to life?

Outline the recommended solution, or the project’s objectives.  How is the project going to solve the problem you established in the first part? What are the project goals and objectives?

Explain the solution’s value.  Once you’ve finished your project, what will happen? How will this improve and solve the problem you established in the first part?

Wrap up with a conclusion about the importance of the work.  This is another opportunity to reiterate why the problem is important, and why the project matters. It can also be helpful to reference your audience and how your solution will solve their problem. Finally, include any relevant next steps.

If you’ve never written an executive summary before, you might be curious about where it fits into other project management elements. Here’s how executive summaries stack up:

Executive summary vs. project plan

A  project plan  is a blueprint of the key elements your project will accomplish in order to hit your project goals and objectives. Project plans will include your goals, success metrics, stakeholders and roles, budget, milestones and deliverables, timeline and schedule, and communication plan .

An executive summary is a summary of the most important information in your project plan. Think of the absolutely crucial things your management team needs to know when they land in your project, before they even have a chance to look at the project plan—that’s your executive summary.

Executive summary vs. project overview

Project overviews and executive summaries often have similar elements—they both contain a summary of important project information. However, your project overview should be directly attached to your project. There should be a direct line of sight between your project and your project overview.

While you can include your executive summary in your project depending on what type of  project management tool  you use, it may also be a stand-alone document.

Executive summary vs. project objectives

Your executive summary should contain and expand upon your  project objectives  in the second part ( Outline the recommended solution, or the project’s objectives ). In addition to including your project objectives, your executive summary should also include why achieving your project objectives will add value, as well as provide details about how you’re going to get there.

The benefits of an executive summary

You may be asking: why should I write an executive summary for my project? Isn’t the project plan enough?

Well, like we mentioned earlier, not everyone has the time or need to dive into your project and see, from a glance, what the goals are and why they matter.  Work management tools  like Asana help you capture a lot of crucial information about a project, so you and your team have clarity on who’s doing what by when. Your executive summary is designed less for team members who are actively working on the project and more for stakeholders outside of the project who want quick insight and answers about why your project matters.

An effective executive summary gives stakeholders a big-picture view of the entire project and its important points—without requiring them to dive into all the details. Then, if they want more information, they can access the project plan or navigate through tasks in your work management tool.

How to write a great executive summary, with examples

Every executive summary has four parts. In order to write a great executive summary, follow this template. Then once you’ve written your executive summary, read it again to make sure it includes all of the key information your stakeholders need to know.

1. Start with the problem or need the project is solving

At the beginning of your executive summary, start by explaining why this document (and the project it represents) matter. Take some time to outline what the problem is, including any research or customer feedback you’ve gotten . Clarify how this problem is important and relevant to your customers, and why solving it matters.

For example, let’s imagine you work for a watch manufacturing company. Your project is to devise a simpler, cheaper watch that still appeals to luxury buyers while also targeting a new bracket of customers.

Example executive summary:

In recent customer feedback sessions, 52% of customers have expressed a need for a simpler and cheaper version of our product. In surveys of customers who have chosen competitor watches, price is mentioned 87% of the time. To best serve our existing customers, and to branch into new markets, we need to develop a series of watches that we can sell at an appropriate price point for this market.

2. Outline the recommended solution, or the project’s objectives

Now that you’ve outlined the problem, explain what your solution is. Unlike an abstract or outline, you should be  prescriptive  in your solution—that is to say, you should work to convince your readers that your solution is the right one. This is less of a brainstorming section and more of a place to support your recommended solution.

Because you’re creating your executive summary at the beginning of your project, it’s ok if you don’t have all of your deliverables and milestones mapped out. But this is your chance to describe, in broad strokes, what will happen during the project. If you need help formulating a high-level overview of your project’s main deliverables and timeline, consider creating a  project roadmap  before diving into your executive summary.

Continuing our example executive summary:

Our new watch series will begin at 20% cheaper than our current cheapest option, with the potential for 40%+ cheaper options depending on material and movement. In order to offer these prices, we will do the following:

Offer watches in new materials, including potentially silicone or wood

Use high-quality quartz movement instead of in-house automatic movement

Introduce customizable band options, with a focus on choice and flexibility over traditional luxury

Note that every watch will still be rigorously quality controlled in order to maintain the same world-class speed and precision of our current offerings.

3. Explain the solution’s value

At this point, you begin to get into more details about how your solution will impact and improve upon the problem you outlined in the beginning. What, if any, results do you expect? This is the section to include any relevant financial information, project risks, or potential benefits. You should also relate this project back to your company goals or  OKRs . How does this work map to your company objectives?

With new offerings that are between 20% and 40% cheaper than our current cheapest option, we expect to be able to break into the casual watch market, while still supporting our luxury brand. That will help us hit FY22’s Objective 3: Expanding the brand. These new offerings have the potential to bring in upwards of three million dollars in profits annually, which will help us hit FY22’s Objective 1: 7 million dollars in annual profit.

Early customer feedback sessions indicate that cheaper options will not impact the value or prestige of the luxury brand, though this is a risk that should be factored in during design. In order to mitigate that risk, the product marketing team will begin working on their go-to-market strategy six months before the launch.

4. Wrap up with a conclusion about the importance of the work

Now that you’ve shared all of this important information with executive stakeholders, this final section is your chance to guide their understanding of the impact and importance of this work on the organization. What, if anything, should they take away from your executive summary?

To round out our example executive summary:

Cheaper and varied offerings not only allow us to break into a new market—it will also expand our brand in a positive way. With the attention from these new offerings, plus the anticipated demand for cheaper watches, we expect to increase market share by 2% annually. For more information, read our  go-to-market strategy  and  customer feedback documentation .

Example of an executive summary

When you put it all together, this is what your executive summary might look like:

Common mistakes people make when writing executive summaries

You’re not going to become an executive summary-writing pro overnight, and that’s ok. As you get started, use the four-part template provided in this article as a guide. Then, as you continue to hone your executive summary writing skills, here are a few common pitfalls to avoid:

Avoid using jargon

Your executive summary is a document that anyone, from project contributors to executive stakeholders, should be able to read and understand. Remember that you’re much closer to the daily work and individual tasks than your stakeholders will be, so read your executive summary once over to make sure there’s no unnecessary jargon. Where you can, explain the jargon, or skip it all together.

Remember: this isn’t a full report

Your executive summary is just that—a summary. If you find yourself getting into the details of specific tasks, due dates, and attachments, try taking a step back and asking yourself if that information really belongs in your executive summary. Some details are important—you want your summary to be actionable and engaging. But keep in mind that the wealth of information in your project will be captured in your  work management tool , not your executive summary.

Make sure the summary can stand alone

You know this project inside and out, but your stakeholders won’t. Once you’ve written your executive summary, take a second look to make sure the summary can stand on its own. Is there any context your stakeholders need in order to understand the summary? If so, weave it into your executive summary, or consider linking out to it as additional information.

Always proofread

Your executive summary is a living document, and if you miss a typo you can always go back in and fix it. But it never hurts to proofread or send to a colleague for a fresh set of eyes.

In summary: an executive summary is a must-have

Executive summaries are a great way to get everyone up to date and on the same page about your project. If you have a lot of project stakeholders who need quick insight into what the project is solving and why it matters, an executive summary is the perfect way to give them the information they need.

For more tips about how to connect high-level strategy and plans to daily execution, read our article about strategic planning .

Related resources

How to create a winning marketing plan (with examples)

How to create and use a social media content calendar

Stay on track with a project plan that actually works

What is project risk management? 6 steps to boost success

• Business Planning

How to Write an Executive Summary for a Business Plan

Written by Vinay Kevadiya

Published Aug. 21 2024 · 12 Min Read

Imagine you’re about to ask someone out on a first date!

You’ve got just a few moments to make the all-important first impression—so what do you say? Would you prefer a long speech or something short, sweet, and unforgettable?

Well, crafting an executive summary in a business plan is just like that all-important first impression moment.

You've limited time to grab the attention of any reader and show them that your business is worth investing in. Who knows, maybe even bag a second date (meeting 😉).

So in this blog, we’ll simplify how to create an executive summary that’s engaging. Let's get started!

What is an Executive Summery?

An executive summary is a short overview of a business plan. It gives a quick snapshot of what the business is about, what it offers, who it serves, and how it'll make money.

It also highlights the business goals, products or services, market opportunity, financial outlook, and the team behind the business.

As the first section of a business plan, its purpose is to grab the reader's attention and encourage them to explore the further details.

Executive Summary vs. Business Plan

An executive summary is a brief overview of the entire business plan. It summarizes key points such as business goals, products or services, market opportunities, financial projections, and the management team.

Whereas, a business plan is a comprehensive document that details every aspect of the business. It includes strategies, market analysis, operations, financial plans, and more.

In brief, the executive summary is a short description of the important aspects of your business plan in 1 to 2 pages. On the other hand, the business plan is a detailed document of around 15-30  pages.

Benefits of an Executive Summary in a Business Plan

An executive summary is more than just an introduction to your business plan , it offers various benefits like:

Allows quick decision-making

The executive summary allows potential investors and partners to evaluate the validity of your business idea. By providing a concise overview, it helps them make informed decisions without having to go through the entire business plan.

Acts as a standalone

Sometimes, readers might not have time to read the full business plan. Then, a well-crafted summary comes into play. It serves as a standalone document that covers all the necessary information about your business.

Sets the strategic direction

The summary doesn't just introduce your business plan—it also sets the strategic direction for your business. By clearly mentioning your goals, objectives, and strategies, an executive summary serves as a roadmap for success.

Builds credibility and trust

An effective summary shows your professionalism and thorough understanding of your business. By clearly including your business strategy, market analysis, and financial projections, you show that you have done your homework. This also shows that you’re serious about your business and committed to its success.

To take all these benefits, you need a solid executive summary, let's go ahead and see how to write one.

How to Write a Business Plan Executive Summary?

An executive summary is the first glance at the business plan, and writing it effectively is necessary. It not only captures the essence of your business but also piques the interest of potential investors or partners. Let's see how to write one:

1) Start with a compelling introduction

Begin your summary with a powerful opening that immediately captures attention. A compelling fact, statistic, or bold statement can set the stage effectively.

This introduction briefly mentions your business name and the core purpose of your venture. By starting strong, you engage the reader right from the beginning, making them eager to delve deeper into your business plan.

Matt Bellerose, founder of LobsterOrder , highlighted the power of a "rejection-proof" opening in an effective executive summary.

He shared, "We opened with a stunning statistic: '90% of seafood in the US comes from imports, often of questionable quality.' It set the stage for our solution." This approach shows how a compelling introduction can attract the readers to read the business plan.

2) Give the company description

After capturing attention with a compelling introduction, provide a clear and concise description of your company. It should briefly cover your business's name, location, company history (if any), ownership, and core activities.

This description establishes the identity and scope of your business, offering necessary background information to the reader.

Additionally, mention your business structure, such as whether it's a startup, family-owned, or a corporation, and specify the current stage of your business, whether it's in the starting phase, development, or another stage.

3) State the problem and solution statement

Clearly state the specific challenge or market need that your business addresses. This section should highlight the significance of the problem and why it demands a solution.

Then, present your solution, detailing how your product or service effectively resolves the problem. Explain what makes your solution unique or superior to existing alternatives. This typically means you’ve to introduce your Unique Selling Proposition (USP) here.

As Peter Drucker famously said, "The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself." Likewise, your problem and solution statement should show how your business is perfect to meet the market's needs.

4) Outline market analysis

Here, highlight the size of the market, your target audience, and key trends that show demand for your product or service.

Including strong statistics can make this section more impactful. For example, Kevin Shahnazar, founder of FinlyWealth , used the "3-2-1 Method" in his executive summary.

He started with three key market insights, like "68% of credit card holders are using the wrong card for their spending habits, potentially losing thousands in rewards annually." This approach quantified the market potential and emphasized the need for his solution.

Your market analysis should clearly define your target market and its growth potential, making a strong case for your business's success.

5) Explain your business model

This section should define how your business plans to generate revenue. Start by describing the primary revenue streams—product sales, subscriptions, services, or something else.

Next, explain your pricing strategy and how it syncs with the expectations of your target market.

Highlight the unique aspects of your business model that provide a competitive edge, such as a cost-effective production process, unique distribution method, etc.

By providing a clear explanation of your business model, you help readers understand how your business will operate and generate revenue.

6) Describe your marketing and sales strategies

Begin by identifying what sets your product or service apart and use this unique feature as the base of your marketing strategy. Explain how you’ll use this advantage to attract your target audience.

Also, mention the channels you’ll use, like social media, content marketing, or partnerships, to reach and engage your customers.

Dan Khasis, founder and CEO of Route 4 Me , suggests enhancing your strategy with an impact statement that highlights the broader effect your business will have.

This impact statement should show how your marketing efforts will contribute to a larger cause. But keep the impact statement of the marketing plan short and simple to understand.

7) Introduce your management team

Here, mention the key members of your management team. Start by introducing each member, and mentioning their roles and responsibilities.

Provide a brief overview of their background, experience, and any achievements or awards. Emphasize how their skills will contribute to the success of your business.

A strong management team can build confidence among readers, reassuring them that your business is in capable hands.

8) Highlight financial forecasts

This section provides a brief overview of your business’s financial summary and projections.

Start by stating key figures such as expected revenue, profit margins, and cash flow over the next few years. This gives readers a sense of your business’s financial health and potential for growth.

Include projected break-even analysis, ROI (Return on Investment), and expected expenses. Make sure your forecasts are realistic with practical expectations.

If you're raising funding, then mention your ask amount at the end. A realistic financial plan shows readers that your business is stable.

Now that you know how to craft a compelling executive summary, the next crucial question is…

How Long Should an Executive Summary Be?

Well, an executive summary should be one to two pages long. As the purpose here is to provide only a short overview of the whole business plan.

Plus, potential investors or partners have limited time, and the executive summary is the first thing they'll read. So, it needs to be short enough to catch their attention while still covering all the necessary details.

Just focus on clarity, ensuring that every sentence adds value. Avoid going into too much detail—leave that for the other sections of the business plan.

Common executive summary mistakes to avoid

One of the most common errors is writing the summary first , rather than at the end. It’s better to write it last so that you’ve got a clear idea of the whole business plan.

Another mistake is not customizing your summary to your audience. It's important to customize your summary to address the specific needs of different groups, whether they’re investors, partners, or others.

Finally, avoid using jargon or buzzwords, and focus on clear as well as simple language that effectively communicates your message. By avoiding these, you can create an executive summary that’s clear and engaging.

What to do after writing an executive summary?

Once you've completed your executive summary, here are a few steps you need to take to make your summary efficient. Here's what you should do next:

Review and revise

Once, you've written the executive summary, take a break and return for reviewing. This break allows you to review or revise the summary with a fresh perspective. Check for consistency and clarity too. As Ernest Hemingway famously said, “The first draft of anything is crap.” Revising allows you to refine your ideas and ensure your summary is to the point.

Get feedback

Share your executive summary with colleagues, mentors, or friends for more insights. They can offer a different view and help identify areas that might need corrections. Then use the same feedback to change the summary that syncs with your target customers.

Finalize and format

Once you're sure about the content, focus on the formatting now. A well-formatted executive summary is easy to read and understand. Use headings, bullet points, short paragraphs, and visuals. A clean and organized format will make your summary engaging.

Prepare for further questions

Potential investors or partners might have questions. Be prepared to think about all the aspects of your summary. Familiarize yourself with all the aspects of the executive summary, so you confidently answer all the queries.

Executive Summary Example

Here's an example of the executive summary for GreenLeaf Organic Farms. This example will guide you through each section, so let's walk through it:

Business name: GreenLeaf Organic Farms 

Location: Napa Valley, California 

Type of business: Organic farming and distribution 

GreenLeaf Organic Farms is an organic farm in Napa Valley dedicated to growing high-quality, sustainable fruits and vegetables. Our mission is to provide healthy, organic produce to consumers while protecting the environment through sustainable farming practices.

Consumers are increasingly worried about the use of pesticides and GMOs in their food, but there aren’t enough reliable sources of organic produce to meet this demand. The market is in need of consistent, high-quality organic options.

GreenLeaf Organic Farms will fill this gap by offering a variety of organic fruits and vegetables that are grown sustainably and available year-round. Our produce is GMO-free, pesticide-free, and packed with nutrients, making it the perfect choice for health-conscious consumers.

Market analysis

The U.S. organic food market is booming, expected to reach $70 billion by 2025. Napa Valley is an ideal location for our farm, with a strong local demand for organic produce. Our target customers include local grocery stores, farmers' markets, and direct online sales.

Business model

We generate revenue by selling our produce through local stores, farmers' markets, and online subscriptions. Our pricing is competitive, reflecting the high quality of our products. By focusing on sustainable farming, we also reduce costs and increase our competitive edge.

Marketing and sales strategies 

Our marketing will emphasize the health and environmental benefits of our organic produce. We’ll use social media, partnerships with influencers, and content marketing to reach our target audience. We’ll also highlight how our farming practices contribute to a more sustainable future.

Management team

GreenLeaf is led by John Doe, who has over 20 years of experience in organic farming, and Jane Smith, who specializes in scaling agricultural businesses. Together, they bring the expertise needed to grow GreenLeaf into a successful and sustainable business.

Financial forecasts 

Funding requirements 

We are seeking $500,000 in investment to cover startup costs, including land, equipment, and initial operations. This investment will enable us to establish GreenLeaf as a leader in the organic farming market.

Crafting a great executive summary is your first step toward securing investment or partnership for your business.

Remember, a clear and concise summary can make all the difference. If you're feeling stuck or need a little help drafting your summary or the whole business plan, then Bizplanr is here to help.

It helps you create a professional business plan in no time. Try yourself out Bizplanr today!

Get Your Business Plan Ready In Minutes

Answer a few questions, and AI will generate a detailed business plan.

Generate your Plan

Frequently Asked Questions

Does an executive summary need a title?

Yes, an executive summary needs a title. The title "Executive Summary" clearly indicates to the reader what this section is and sets the stage for what follows. It helps to organize the document and ensures that readers can quickly locate the summary when reviewing the business plan.

What are the 5 parts of the executive summary?

An executive summary includes five parts and they’re:

Can an executive summary be more than one page?

Yes, an executive summary can be more than one page, but it's recommended to keep it as short as possible. The ideal length of an executive summary is 1-2 pages so, keep this length in mind.

As the founder and CEO of Upmetrics, Vinay Kevadiya has over 12 years of experience in business planning. He provides valuable insights to help entrepreneurs build and manage successful business plans.

Follow Vinay Kevadiya

Related Posts

How to Use AI to Write a Business Plan: A Detailed Guide

How to Critique a Business Plan

How Long Should an Executive Summary be

Sign up for our newsletter for product updates, new blog posts, and the chance to be featured in our Small Business Spotlight!

Why your business plan's executive summary is so important (+ how to write one)

If you plan to launch your own small business , then you'll need to write an executive summary as part of your full business plan. In this article, we'll answer all your pressing questions, including: What the heck is an executive summary, anyway? What’s the purpose of an executive summary? And how do I actually create a well-written executive summary?

Executive summaries are arguably one of the most critical sections of a business plan —and they're also one of the trickiest to write. The executive summary is the first part of your complete business plan that someone will read, so it needs to be compelling in order to convince someone to read the whole thing.

But here’s the catch: 55% of people spend less than 15 seconds actively reading content, based on data published in Time Magazine . This means the limited window of time you have to convince someone your business plan is worth their attention depends on a strong executive summary. No pressure or anything.

For that reason, it’s important to know how to draft a concise executive summary that makes an impact and communicates the goals of your small business. But have no fear, just read on to learn how!

What is an executive summary?

An executive summary is essentially an outline of your business plan. If your full business plan is a roadmap, your executive summary is your roadmap's roadmap. It gives your readers a heads up about what you'll talk about in the rest of your business plan. For all intents and purposes, your business's executive summary is your elevator pitch.

The purpose of an executive summary

If there's one section of your business plan everyone is going to read, it's the executive summary. Your business plan's executive summary exists to give readers an overview of the entire document. It should outline what they can expect to learn and motivate them to keep reading on.

“Investors will read the executive summary to decide if they will even bother reading the rest of the business plan. It’s rare for an investor or lender to read an entire business plan, at least in the initial stages of analysis and consideration for funding,” says Eric Markowitz , Inc.com Staff Writer.

Keep your goals and purpose in mind when writing your executive summary.

If your business is a startup, the purpose of your business plan (and executive summary) will likely be to get banks or investors to provide you with financing. So, when writing your executive summary, highlight the financial requirements of your business and why your business is worthy of funding.

If you're a more established business owner, then your executive summary will talk more about your achievements, evolution, and goals for the future.

How to write an executive summary for a business plan

Your business's executive summary should be as short as possible, ideally only one or two pages long.

Remember that you're vouching for yourself and your business in your executive summary, so make sure your language is confident and positive!

Bad example : We might not be the best or the most established protein powder brand, but we probably have the most passion and love out of all our competitors.

Good example: With some vegan protein powder products on the market currently, we expect mild competition and are confident we will be able to build a strong market position.

It's best practice to avoid talking about more fluffy, subjective points and cliches (like passion, hard work, etc.) so you can focus more on the practical information and facts your readers want to know about (like why they should actually invest or partner with your business). You also want to seem confident in yourself and your business, so avoid words like "might," "maybe," or "could" and opt for more definitive words, like "will"!

Remember that your executive summary should fill in the blanks for your readers. Keep your target audience in mind and try to answer their questions, rather than create new ones, or they may get confused and stop reading. Give them a reason not to go back to checking their current value of Bitcoin. 

"Put yourself in the business plan reader's shoes and think about what you would like to know in the report," Marius Thauland, business strategist at Leiekontor, told Business News Daily . "Get their attention by making it simple and brief yet still professional. It should also attract them to read the entire document to understand even the minute details."

There's no specific way to order the different sections of your executive summary, but you'll want to put the most important information or your strongest points first . The first sentence and paragraph of your executive summary is especially important, since these are what will reel your readers in.

We'll give you an idea of how to do this below.

What to include in the executive summary of your business plan

Despite being the first page of your business plan, it’s a good idea to write your executive summary section last. This trick allows you to get a clear picture of what specific material from the full business plan you need to introduce in the executive summary. So if you haven't written the rest of your business plan yet, stop, maybe check out our articles on writing a business plan (wink wink nudge nudge), and come back here once you're done.

Since the goal of a business plan is to persuade the reader to invest in your business, your executive summary needs to demonstrate why this investment would be a smart financial decision. The kicker is: you need to do all of this in 1-2 pages.

To get started, The Balance Small Business suggests including the following eight sections. Choose the topics most relevant to your business and write one or two sentences about each of them. And remember to order them from most important to least important! ‍

1. Business opportunity

What demand or need is there for your business and how will you meet this demand? Talk about a problem or a gap in the market, and why your business alone has all the answers. ‍

2. Target market

What demographic do you intend to reach as your customer base? Who's going to be buying your product? ‍

3. Business model

Use this part to give more juicy details about your business idea. What products or services will your business offer, and what makes them desirable? ‍

4. Marketing/Sales strategy

What will your methods be to create brand recognition for these products or services? You might want to consider marketing techniques like social media, paid media, or email marketing. ‍

‍ 5. Competition

Give your readers the low-down of your industry. What businesses will you compete with for market share, and what does your business offer that your competitors do not? How big and competitive is your industry? How will you stand out against other small businesses? Are there any industry trends you should bring up? ‍

6. Financial analysis

Investors and banks will be especially interested in this part. What is your plan to manage your business finances, and what is your projected revenue for the first three years of your business? You should go into detail about how you will distribute your funding and spell out what your investors will get out of it. ‍

7. Owners/Staff

In this section, you can give a brief overview of your business's history. Who are the owners and lead staff members of your business and what important skills or credentials do they bring? ‍

8. Implementation plan

What is your framework and timeline to move from a concept to launching an actual business?

Effective executive summary examples

Sitting down to start writing an executive summary and putting all the pieces together can be challenging .  

To think about it differently, you might consider grouping the above details into a few specific categories: ‍

Mission statement

What are the core values and central purpose of your business? ‍

Company information

What products or services do you offer, how long has your business been in operation, who are the owners and lead staff members, and how many business locations do you manage? ‍

Financial summary

What is the current and projected state of your finances and do you need an investor to help you expand? ‍

Future goals

What objectives or projects will this financial investment be used for?

Keep in mind that, as you write your own executive summary, you should consider the industry and market that you are entering, the customers you’ll be interacting with, and the things your business will need to succeed (financial backing, upfront costs, additional workforce, etc). Here’s an example of a good executive summary template to guide you as you embark on writing your own executive summary.

Executive summary/business plan example: Vegan Protein Blitz

Company: Vegan Protein Blitz: Animal-free protein powder ‍

Our Mission

Vegan Protein Blitz: Animal-Free Protein Powder offers 25 grams of protein per serving without any use of animal protein—similar to, and in many cases, more than, the average amount of protein in similar products. We intend to appeal to those within the fitness community who are looking for a great-tasting protein powder without compromising on the amount of protein per serving. With some vegan protein powder products on the market currently, we expect mild competition and are confident we will be able to build a strong market position.

The Company and Management

Vegan Protein Blitz: Animal-Free Protein Powder was founded in 2018 by Sarah Bailey, a certified personal trainer and former food scientist, who couldn’t find a vegan protein powder that tasted good and provided the amount she needed to fuel her fitness routine. Her kitchen is based in San Diego, California, where she employs two full-time employees and three part-time employees.

Along with Sarah Bailey, Vegan Protein Blitz: Animal-Free Protein Powder has a board of advisors. The advisors are:

• Laura Henry, partner at Food Inc.
• Kristin Smith, CEO of Just Nuts Vegan Health Bars

Our Product

We offer animal-free protein powder that is made with all-natural sugar sources and no preservatives. Our customers are health-conscious and serious about fueling their bodies with animal-free whole foods. We plan to grow quickly, with an initial goal of building a full-time marketing team of fitness advocates and professionals who understand the industry and our customers’ needs.

Our Competitive Advantages

While there are other vegan protein powders on the national market, there are none that are made with all-natural sugar and with a comparable amount of protein as that of an animal-based powder. With the expertise of our founder Sarah Bailey, we also stand out as a company that truly understands the audience. Please see our market research (Section 3) for more information on why consumers are demanding this expertise.

Financial Considerations

Our sales projections for the first year are $600,000 with a 10% growth rate over the next two years. By year three, we project 55% gross margins and will have ten full-time employees. The salary for each employee will be $60,000 USD.

Startup Financing Requirements

We are seeking to raise $250,000 in startup funds to finance the first year. The owner has invested $40,000 to meet working capital requirements, and will use a loan of $80,000 to supplement the rest.

More executive summary templates

Need more business plan examples, or ready to create your own executive summary with a template? Here are a few we found around the web:

• US Small Business Association
• Template.net

Final tips for writing an executive summary

Earning investor interest in your business is critical to getting access to the things your business will need to succeed, and a solid executive summary can help you do that. Writing your full business plan first can help you get clarity on the strongest key points of your business proposal, which you can use to build out your executive summary.

Most importantly, keep this section of your business plan straightforward and concise, making it easy for the reader to understand what you’re doing and why it matters.

Brush up on your writing skills

You're an entrepreneur, and you probably didn't start your business to write business plans . Free online editing tools and resources like Hemingway and Grammarly can help you punch up and polish your writing. Just copy and paste your executive summary into the software, and it will let you know where your writing needs to be more clear.

Get to the point

Remember what we said about keeping it short? We mean it. Even if there's a really clever sentence that you're super proud of, it's gotta go if it doesn't contribute to your summary. You don't want to give too much detail (that's what the rest of your business plan is for!) or repeat yourself.

Always proofread your work a couple of times before calling it a day! Reading your executive summary out loud can help you identify awkward phrasing and catch any typos you might have missed. Another idea is to copy and paste it into a text-to-speech program to hear what it sounds like out loud. It also helps to print out your executive summary and edit the physical document, which helps you see it from a fresh perspective. 

Get feedback

If you have a kind friend, family member, or fellow business owner, you should ask them to take a look at your executive summary/business plan and give their constructive criticism. If they understand your goals and plan and seem excited about your idea, that's a good sign! If they give your business plan back to you with a bunch of red marks and a confused look on their faces, that's probably a sign for you to make sure your executive summary flows more logically.

Send invoices, estimates, and other docs:

• via links or PDFs
• automatically, via Wave

*While subscribed to Wave’s Pro Plan, get 2.9% + $0 (Visa, Mastercard, Discover) and 3.4% + $0 (Amex) per transaction for the first 10 transactions of each month of your subscription, then 2.9% + $0.60 (Visa, Mastercard, Discover) and 3.4% + $0.60 (Amex) per transaction. Discover processing is only available to US customers. See full terms and conditions for the US and Canada . See Wave’s Terms of Service for more information.

Related Posts

Once your business is off the ground, Wave will be ready and waiting for you. Send free invoices, get paid, track expenses, pay your team, and balance your books with our beginner-friendly financial management software.

The information and tips shared on this blog are meant to be used as learning and personal development tools as you launch, run and grow your business. While a good place to start, these articles should not take the place of personalized advice from professionals. As our lawyers would say: “All content on Wave’s blog is intended for informational purposes only. It should not be considered legal or financial advice.” Additionally, Wave is the legal copyright holder of all materials on the blog, and others cannot re-use or publish it without our written consent.

What Is a Business Plan Executive Summary?

An executive summary in a business plan outlines your company’s mission, market positioning, and financial projections in a concise format. It highlights key points to capture investors’ interest, acting as a compelling introduction to your business plan.

By Brad Nakase, Attorney

Email   |  Call (888) 600-8654

Have a quick question? I answered nearly 1500 FAQs.

What is the purpose of an executive summary in a business plan?

Writing a business plan should be among your top priorities when launching a new company. In your business plan, you may outline your objectives and the steps you’ll take to achieve them, much like a road map for your company.

Any entrepreneur worth their salt knows that having a well-thought-out plan is vital before approaching potential investors or small business lenders for financing. Ultimately, a bank or investor will want assurance that your business is stable before they part with their cash.

From an overview and study of the market to a strategy for financing and forecasts, there are many parts to a business plan. Your business plan will begin with an executive summary. In case you have been putting off finishing your company plan because you are unsure of how to create an executive summary, we are here to help you. Get your business plan off to a good start by following this article, which will define executive summaries and offer ideas on how to write your own.

What is the definition of an executive summary?

At the beginning of your business plan, you should include an executive summary that is concise, to the point, and easy to read. The executive summary is crucial, despite its brief length (just one or two pages).

In an executive summary, you may explain your company’s mission, the value it provides, the reasons investors should back your venture, and how you plan to use their money. The goal of an executive summary is to provide the reader with the necessary information in a concise and engaging way.

Why should you include an executive summary?

Your business plan and executive summary recipients are probably quite busy people. An extensive business plan is lengthy, complex, and has several numerical components. A busy person wants to learn about your company, and they want to learn it fast—not by reading an eighty-page business plan. Your executive summary can help with that.

An executive summary is a perfect way to introduce your company, pique someone’s curiosity, and make your case for investment in a concise and compelling manner. To convince possible investors that their time and money would be well-spent, you should use your executive summary as a sales pitch.

The components of an effective executive summary

Executive summaries are often brief. You need excellent communication skills to sell your business concept, highlight your unique selling points, and outline your growth strategy. Since it is frequently the sole document that a potential investor will read, your executive summary should contain the most important parts of your business plan. The rest of the plan will provide more information later on. The following is a list of the components that should be included in your executive summary; you may think of it as a template for designing your own executive summary.

Readers will decide if they want to read your whole executive summary based on the first line and paragraph. That is why the introduction or hook plays such a crucial role.

A hook is, in the broadest sense, anything that captures the interest of the reader. Although an executive summary is a business document with a professional tone, you still want your hook to grab readers’ attention—and not waste any time. You might use a clever statement, an intriguing statistic, or a well-crafted description of your firm as your hook. Make sure to consider the reader’s personality as you design your hook. Offer them something that will differentiate your firm from the competition and leave a lasting impression.

If you can capture their interest in the very first paragraph, they are far more likely to read the executive summary and, who knows, maybe even invest in your company.

• A brief overview of the company

The next step, after capturing the reader’s attention, is to provide some background information on your company. After all, before an investor will put their money into your business, they need to know what you do, the product you offer, and who runs the show.

Provide data about your firm’s history and location in your company description. Make sure to mention your goods or services, the names and precise responsibilities of your founders or executive team, and any other information regarding your management style.

• Analysis of the market

Provide a high-level overview of your company’s target market in the executive summary by way of your market study. It is important to demonstrate that you looked into the market and found a need for your offerings. Consider the following questions: Who are your rivals in this market? Is interest in what you have to offer high? Tell me what sets your company apart from the competition and the benefits you offer.

No need to go into detail in your executive summary; just cover the essentials of your market research. While you should save the in-depth research for another part of your business plan, the executive summary should provide a prospective investor enough information to see if your company has staying power.

• Services and goods 

After identifying a need in the market, the next step is to demonstrate how your company can fill that gap. In this part of your executive summary, you should focus on showcasing the service or product that your business provides. Describe your company’s present revenues, its progress thus far, and anything else that stands out.

Now is also an excellent moment to figure out what makes your company unique and how you can use that to your advantage. You should not expect your company to be the pioneer in its industry. Emphasize your competitive advantages and the reasons why your product or service is the best choice for customers.

• Projections and financial data 

An executive summary isn’t complete without a review of the company’s financials, and this section is the place to provide just that. Just give the essentials at this point; you’ll go into further detail later in your business strategy. Include your present sales and earnings (if any), your fundraising goals and how they will impact your financials in the coming years, and any other relevant information.

Additionally, this is the place to mention any previous money that you may have received. Lenders will look favorably upon you if you have a history of timely loan repayments.

• Objectives for the future

Not only is it critical to ask for the money you need, but you must also be specific about how you will spend it. Make sure the person you’re requesting money from knows exactly what you’ll do with it.

Are you planning to create a second store, introduce new products, or increase your marketing budget? The last piece of an executive summary should explain the long-term goals of your company and emphasize how raising capital will bring you closer to those goals.

A guide to crafting an effective executive summary

Not everyone will pay attention to your executive summary, no matter how thorough it is. Both the content and the style of writing can be of equal importance.   Finding the right mix of formality, friendliness, confidence, and humility is key when crafting an executive summary.

• Minimize wordiness

Your business plan should cover all of the same content in an executive summary, but in a substantially condensed version. Concisely drafting an executive summary is a challenging undertaking that will need multiple changes before reaching the final version. You should write this piece of your executive summary last, after you have assembled all the other components, even if it is the first section.

Review your company strategy and make note of the most crucial topics using single-line bullet points. These will serve as the basis for your executive summary. Review those bullet points again and cross out any information that isn’t essential to grasping your company.

You may begin crafting your executive summary after you have refined your list of bullet points. Edit it again once you’ve written it to cut out any extraneous details. Keep in mind that this section is just for highlighting key points; the remainder of your business plan is where you may provide additional depth. People are more inclined to read your executive summary if it is concise and easy to understand.

• Make use of bullet points

Using bullet points is a quick and easy approach to make your executive summary more accessible. More white space will make your executive summary simpler to read and faster for people who are skimming or reading on a tight schedule.

If you want your executive summary to be easy to skim, which is probably what your reader is doing, be sure to use short paragraphs, simple words, and bullet points. Readers are more inclined to continue reading if key statistics and crucial facts stand out.

• Engage your listeners

Consider your audience—the people you’re trying to persuade—as you craft the executive summary. An effective way to grab the reader’s attention in an executive summary is to tailor it to their hobbies and personality.

Some examples of personalization include including the recipient’s name in the greeting, tailoring your details to their interests, and using an informal tone. Since it is a business document, an executive summary should seem official. The use of slang or other forms of creative language may be acceptable in some fields, while others may prefer more formal language.

Always adapt your tone of voice to the person you are speaking to. That may be polite and formal, knowledgeable and curt, casual and friendly, or any other suitable tone. As an additional step, you may need to revise your executive summary depending on who you’re writing it for.

• Focus on what you do well

Highlighting your company’s distinctive selling points is a great approach to grab readers’ attention. To pique a reader’s attention and convince them to invest in your firm, you need to highlight its strengths, which are also its distinctive selling points. From the very beginning of your executive summary, make sure to emphasize these characteristics.

• Get someone to read it over

You should find a test reader when you have finished writing and revising your executive summary. A business owner or someone working in your field may provide invaluable insight, but it’s also a good idea to recruit a beta reader who isn’t an expert in your field. Having many sets of eyes on your executive summary can help you catch any clumsy wording and ensure that it’s easy to grasp for everyone.

In the absence of a test reader, you may check your work for clarity and grammar mistakes with apps like Hemingway App and Grammarly.

What is the ideal length for an executive summary?

There is no hard-and-fast rule about the length of an executive summary. It all relies on how long your business plan is and how much knowledge the reader needs to properly understand what you’re asking. However, you should make it as brief and to the point as possible. A good rule of thumb for an executive summary is between one and two pages.

While you may play about with the margin and font size to make it somewhat longer or shorter, remember that readability is equally crucial. Make sure your executive summary has adequate white space and a legible font size for your reader. No one will bother to read your whole business plan if the executive summary is a pain to read.

Executive summary pitfalls to watch out for

The guidelines for crafting an excellent executive summary aren’t always crystal clear, but there are certain obvious pitfalls to avoid.

A good executive summary stays away from:

• Centered on financial investments: Instead, you should aim to pique the reader’s attention to the point that they either read your business plan in its entirety or at the very least agree to meet with you.
• Overused expressions, exaggerated statements, and clichés: This is not a marketing document; it is an executive summary. It ought to be simple and easy to understand.
• Just as critical as finding the correct tone and providing the reader with the essential information is avoiding the executive summary no-nos.

The bottom line

Despite its brevity, crafting an executive summary is no easy task. An executive summary is a condensed version of your whole business plan that includes your introduction, description, market research, financial forecasts, and request all packed into a single or two pages. Simplifying complex ideas into their most basic forms requires patience and several revisions. To ensure that the executive summary of your business plan is flawless, set aside sufficient time to compose it and ask for feedback from trusted friends and coworkers.

But there are resources that can streamline the process of writing your executive summary and the rest of your business plan. An excellent first step is to get a business plan template; secondly, business plan software is useful for helping with the actual construction of the plan. Since a well-crafted executive summary might sway investors to back your company, you should seek out whatever assistance you can.

Have a quick question? We answered nearly 2000 FAQs.

See all blogs: Business | Corporate | Employment Law

Most recent blogs:

When Is a W-9 Not Required?

Is Small Business Loan Secured or Unsecured

Where Can I Cash a Business Check?

Do I Need a License to Sell Homemade Food in California?

What is Double Taxation? Types, Causes, and Solutions Explained

What Does Net Income Mean for Businesses and Individuals?

What Does It Mean to Commingle Funds: Legal and Financial Risks

What Is the Difference Between an S Corp and a C Corp?

Average Revenue For Small Business

Is it illegal not to pay taxes when being paid under the table?

What Is Trademark Dilution? Understanding Its Impact on Well-Known Brands

What Is the Legal Definition of False Advertising?

Payment Upfront Meaning & 5 Tips for Getting Upfront Payments from Customers

How to Calculate Business Profit

Are General Partners Required to Contribute a Specific Amount of Capital, and What Happens if They Don’t?

Can A Limited Partner Sue a General Partner who Mismanages Partnership Finances?

Can General Partners Use Partnership Funds for Personal Expenses?

Financial Liabilities of General Partners and Ways to Limit Them

What Are the Benefits of Using a DBA (Doing Business As)?

How Can You Place a Vending Machine at a Location?

Roles and Responsibilities in a Limited Partnership? What Happens When a General Partner Commits Embezzlement by Stealing Money?

What Is the Legal Definition of Estoppel?

What Does Business Acumen Mean

How Much is a Wrongful Arrest Lawsuit Worth?

How to File a Lawsuit Against a Company?

What is a Civil Lawsuit? Key Facts Explained

How to Start a Civil Class Action Lawsuit?

Financial Statements: Understanding the Core of Corporate Financial Reporting

Maximizing the 2024 Child Tax Credit: Your Guide to Eligibility, Benefits, and Future Expansions

Contact our attorney.

Please tell us your story:

First & Last Name *

Telephone *

____Write here your question(s)____ The use of this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. By submitting your message, you consent to us referring your message to an attorney outside this firm that may assist you. *

0 + 1 = ? Please prove that you are human by solving the equation *

Your browser does not support javascript. Some site functionality may not work as expected.

• Getting Started
• Overview of Business Plan Components

Executive Summary & Business Description

• Marketing Plan
• Organization Plan
• Financial Plan & Funding
• Exit Strategy
• University of Washington Libraries
• Library Guides
• Business Plan Tutorial

Business Plan Tutorial: Executive Summary & Business Description

Important: The executive summary and business description should be the last components written for a business plan. If you still need to complete research for your plan and write various sections of your plan, do so before processing. 

Executive Summary

A short summary (one to two pages) of the overall plan. The purpose of the executive summary is to get the reader interested. The summary is a space to introduce the most important aspects of the business plan. It is best to be brief; save the in-depth details for the business description. 

Business Description 

The business description is a lead-in to the full plan. The business description may need to be rewritten as the business plan is refined. 

• << Previous: Overview of Business Plan Components
• Next: Customers >>
• Last Updated: Oct 14, 2024 6:40 PM
• URL: https://guides.lib.uw.edu/busplan

Quick Links:

Everything you need to write a killer executive summary for your business plan

What is Executive Summary—and Why Should You Care?

Executive Summary is the first and most important section of a business plan, providing a snapshot of the overall plan with the aim to compel the reader to continue reading the full document by highlighting its most important components and strengths .

Keep reading for insider tips from a professional business writer on how exactly to write a captivating executive summary that will maximize the impact and success of your business plan.

You’ll discover:

• Why: Critical importance of an executive summary
• What: The key elements you need to include
• How: The best structure—length, layout and components

Importance: Why is Executive Summary Important in a Business Plan?

Executive summary is the most important part of a business plan because it is the first and only opportunity to grab readers’ interest as they review this section prior to deciding whether or not to read the rest of the document.

No matter how excellent your business idea, it is the executive summary alone that persuades a reader to spend more time with the plan to find out more about your venture.

Some financiers receive hundreds of business plans every month. Understandably, they do not read them all . Instead, they can tell in a couple of paragraphs if it is something they may be interested in.

The Executive Summary is so important, in fact, that some investors and lenders prefer to receive just the summary and financials before requesting the full business plan. So if you can hook your readers here, they will ask for more.

Similarly, senior decision-makers on many company or bank boards and committees will often read nothing else than an executive summary when approving a decision to back a business.

In other words, your Executive Summary is the  first impression  many readers will get of your business. Make sure it is a great one. Only a  clear ,  concise , and  compelling  summary of your business right up front twill persuade readers to wade through the rest of the plan.

Contents: What Should an Executive Summary for a Business Plan Include?

Executive summary brings the separate parts of a business plan together to sum up what the business is, where it is going, why it will be successful – and why it is worthy of backing . Highlight the most important and impressive facts about the company , management , offering , market , strategy and financials .

When completed, your executive summary will answer these questions for your readers:

• What is your business all about ?
• What are the most compelling qualities?
• Is the business likely to succeed and why?

Executive summary is an introduction to your business, which provides a brief snapshot of your plan as a whole. To that end, concisely highlight the most important concepts and impressive features from each section of your completed plan, addressing the following areas:

Essentially, you should make it crystal clear to the that a compelling market opportunity exists for your product/service and demonstrate that your business is well-positioned to exploit it .

Remember to be brief and concise . Organize the information in a way that gives the best impression of your business to your target reader. Combine related topics if that improves the flow of the document.

If the readers of your executive summary conclude that the above elements exist in your business, they are likely to commit to reading the rest of your business plan.

So, let’s examine each of the key elements in more detail to make the reader excited about the potential of your business plan and interested to read further:

Mission Statement

Answer this question for your readers:

• What is your business on a mission to create and why?

Aim: Convince the reader that your basic business concept makes sense.

Give a concise overview of your business idea, purpose and goals. Summarize why you have created this company and what your business is all about in one or two sentences, but no more than a paragraph.

Products and Services

Answer these questions for your readers:

• What product(s) and/or service(s) does your business provide?
• What problems are you solving for your target customers and how?
• What makes your product/service different and compelling for the customers to buy?

Aim: Demonstrate to the reader that your product/service solves a real problem in the market and that the problem is worth solving.

Briefly describe the products and services your company provides and what problems you solve for your target customers, making the case for why your product will be successful:

Description:

List the products or services your company sells or plans to sell.

Problem & Solution:

Explain the need for the products or services:

• Problem: Summarize the problem your product/service solves and why it is worth solving. In other words, what is it that your customers need and cannot find elsewhere.
• Solution: Summarize how you will solve the problem that your customers face.

Value Proposition:

Outline why your product or service will be valuable to your customers and the advantages that will make it compelling enough for them to purchase.

Market Opportunity

• Who are your (ideal) target customers?
• Is there a real market demand for your product/service?
• What is the size of the market opportunity?

Aim: Convince the reader that large and compelling market demand opportunity exists for your product/service.

List the target market you intend to reach and explain why you chose it:

Target Market:

Provide a brief description of your ideal customers and how do they break down into recognizable types or segments.

Market Analysis:

Indicate that you have done thorough market analysis by providing a summary of your market research results, including:

• How many potential customers are there for your solution (target market)
• What proportion of the market your company can reasonably capture (market share)
• Forecast estimating what the future holds for the industry and market demand

Competitive Advantage

• Who are your competitors?
• How is the market currently divided?
• What advantages does your company have over the competition?

Aim: Convince the reader that your business has a significant competitive edge to succeed in your target market.

This section is where you describe the gap in your target market, how your solution can fill it, and the competitive advantages that will enable you to exploit this market gap.

Hence, include information about your competition and what differentiates your business:

Competitors and Market Distribution:

Who are you up against? What other options do your customers have to address their needs? Indicate the nature of your competition and how the market is currently divided.

Competitive Advantage:

What comparative advantage does your product/service have?

Show your conclusions on your company’s competitive position and why your company will be able to compete successfully. Remember to list any important distinctions, such as patents, major contracts, or letters-of-intent.

Unique Selling Proposition:

What unique selling proposition will help your business succeed?

What makes your solution better for your customers compared to the competition?

Is competition going to get tougher?

Summarize your conclusions on whether competition is going to intensify going forward.

Company Description

Company information:.

• Is the management team capable?
• What are the basic details of your business?
• What is the company’s current stage of development?
• What are some of the milestones you’ve met?

Aim: Convince the reader that your business has the right structure and capable management team in place to succeed.

Your goal is to demonstrate that you are well-positioned to exploit the market opportunity by highlighting the positive factors in your company’s management, structure and history.

Company Details:

Include a short statement that covers the basic company details, such as the company name, when your business was formed, the names of the founders and their roles, number of employees, business location(s), and legal status.

Stage of Development:

State whether your company is a startup or continuing business, when it was founded, how far along the product or service is in its creation, and if you’ve already made sales or started shipping.

Track Record:

• If you are an established business, provide a brief history of the company’s trading activity to date, including financial and market growth highlights.
• If you are just starting a business, you won’t have as much information as an established company. Instead, focus on your experience and background as well as the decisions that led you to start this particular enterprise.

Management:

Briefly describe the bios of the key members of your management team , particularly those of company founders/owners , as well as the key professional advisors .

What do they bring to the table that will position your company well to take advantage of the market opportunity and make the business a success?

Highlight management’s vision and passion , along with the relevant skills , experience , qualifications , subject-matter expertise , business acumen , industry connections and other capabilities as they relate to the venture.

Operations:

Showcase the key operational features that will give the business a competitive edge.

This could include anything from an advantageous location, through innovative manufacturing technology and processes, to preferential supplier and distribution agreements – and anything in between.

Outline the strategy to achieve the company’s goals and continuously strengthen its competitive position.

Next, indicate the keys to success that you intend to use in order to implement that strategy, such as:

• Marketing and Sales: Briefly describe the methods you will utilize to reach your target customers to market your offering and secure sales.
• Operations and Resources: Summarize the most important resources and operational features your company will deploy to implement its strategy.

Address your plans for where you would like to take your business in the future.

Spell out the objectives you have for the company, what you plan to do:

• Where do you expect the business to be in 1 year, 3 years, 5 years ?
• What are some of the key milestones you plan to meet?
• What are your long-term goals ?
• What is your potential exit strategy ?

Make an educated projection for the expected performance of your business, including:

• Sales volume and value
• Cash flow position
• Profitability
• Number of employees
• Number of locations
• Market share
• New products

Financial Forecast

Summarize the expected financial outlook and performance for your business, answering the following questions for your readers:

• How much do you expect to make in the first year of your business?
• What kind of growth do you expect to see in the following years?
• If you do not expect your business to be profitable , do you have a strategic reason for running at a loss?
• What are the key metrics that you need to watch?
• Will your backers (if any) be able to get their money back and when ?
• Are your financial projections realistic ?

In general, it is customary to indicate financial information for years one through three or five , depending on the requirements of the business plan reader. Typically, this includes Year 1 and Year 3 / 5 results; and Year 10 / long-term goals.

However, your readers can find the detail of the projected financials further on in the plan. In this section, only provide the highlights of your forecast and encourage the reader to keep reading to learn more about your company.

Funding Requirements

How will you fund your business to get it started and grow it to the next level?

• Is it already self-sufficient?
• Do you plan to invest your own money?
• Do you seek outside financing?

If the business does not require any outside financing, you can note that here or just remove this section from your plan altogether.

When you are using the business plan for financing purposes, explain how much money is needed, from whom, and how you will utilize it to grow your business, hinting at an exit opportunity:

• Existing Source of Funds: Include information about your current lenders and investors, if any.
• Funding Requirements: Indicate how much money you are seeking, from what sources, and perhaps even under what conditions.
• Use of Funds: Specify how the raised funds will be used.
• Exit Strategy: Hint at how the backers will get their money out, with the expected timing and returns.

Tips: How Do You Write an Executive Summary?

Writing an executive summary is arguably the most fun – and important – part of writing a business plan.

You have already completed all the research, thinking and writing about market demand, competition, strategy, operations and financials.

All that is left to do now is to summarize the key conclusions into a coherent narrative , answering the million-dollar question:

Why is your plan worthy of backing?

Here are 7 tried and tested tips to prepare a compelling summary of your business that will convince the readers to read through the rest of your plan:

Target Audience (Tip #1)

Ask yourself: “Who will be reading my business plan?”

Since the summary is what the reader reads first, and may be the only section read at all, you can significantly improve your chances of a positive reception if you know the answer to that question before you prepare your executive summary.

Remember, your reader is only going to spend a few minutes , or even seconds , on your executive summary. This is especially true if you are targeting busy investors or lenders for whom it is not unusual to review more than 1,000 each year.

Naturally, the readers are going to focus on the issues that interest and concern them most . If you understand their priorities, you will be better able to craft the summary to “push the right buttons”. For example:

• Bankers are likely to look for aspects of your business that minimize risk to make sure the loan is secure and they will get their money back.
• Investors are focused on aspects that maximize the potential of your company scaling significantly and rapidly, because they will receive a share of that success.
• Management may be interested in accessing new markets for the company.

Do your homework to discover the interests and concerns of your most likely business plan recipients, and then write and organize the summary in a way that most appeals to your target audience:

• Place the issues most important to the reader near the top of your summary.
• Order the sections in any way that gives the best impression of your business to your target reader.
• In the text itself, give more emphasis to those aspects that concern your reader most.

If you are not able to identify the specific person who will read your plan, just focus on the general type of a person that is most likely to receive it and their concerns. 

However, it is not a good idea to tailor the executive summary for just one specific person or organization, especially if your plan is likely to end up in the hands multiple and/or unknown recipients.

To be on the safe side, target your summary to address general institutional concerns rather than individual preferences.

Insider Tips: Writing a Winning Executive Summary

Convey your enthusiasm (tip #2).

The Executive Summary enables the readers to quickly understand the highlights of your business and decide whether to commit more of their time to reading the full plan.

To that end, you need to motivate and entice the readers by your own optimism about how well-positioned your business is to exploit a compelling market opportunity, conveyed in a dynamic , positive and confident tone.

Write Executive Summary Last (Tip #3)

Your executive summary will be the last chapter of the business plan that you prepare.

Even though the executive summary always appears first in the completed document, it is usually crafted last after you have had a chance to carefully consider all key aspects of your business throughout the rest of the plan.

The executive summary is the place where you bring all your planning together and sum up the separate parts of your business proposal to provide an overall outline and highlight the strengths of your entire plan.

Therefore, you will find it much easier and faster to come back and produce this section once you have completed the rest of your business plan.

That way, you will have thought through all the elements of your business, work out the details, and be prepared to summarize them. This approach will not only increase the consistency and accuracy of the plan, but also help make it more compelling .

So, if you have not yet finalized the other sections of your plan, proceed to the next section, and return to the executive summary when you have completed the rest of your plan.

Once finished, the executive summary will become “ Chapter 1 ” of your business plan document.

Summarize Highlights (Tip #4)

A good summary contains highlights from all of the subsequent sections of the business plan.

To achieve that, select the key points from each section of your completed plan by summarizing conclusions you have reached in each area. Remember to focus only on the most important and impressive features of your business.

What sets your business apart from the competition? Early on in your summary, showcase your distinguishing qualities and make sure you describe your winning concept in a way that any reader can easily grasp .

Use logical writing to tell a story, freely changing the order of sections and combining related topics if that helps to improve the flow and make a good impression.

Make Each Word Count (Tip #5)

The executive summary provides a brief snapshot of your business, casting a spotlight on the most important facts and concepts from your entire business plan.

As a result, this section should be clear , concise and to the point. Make each word should count.

Avoid Jargon (Tip #6)

In case the summary read by people unfamiliar with your industry, avoid any technical jargon or provide sufficient explanatory notes .

Edit, Edit, … And Edit Some More (Tip #7)

By the time you reach the executive summary, you may be tired from all the planning and writing. However, remember that this really is the most important section of the business plan.

The best investment you can make is to spend sufficient time to perfect the summary, including ruthless editing . There are professional editors who can help you make it flawless.

Design: How Do You Design an Executive Summary?

Looks matter. Your business plan will be well researched, analysed and written, but it must also be well presented. While your plan will ultimately be judged on the quality of your business concept and strategy, you also want to make sure it gives the best first impression possible.

And nowhere is presentation more important than in the executive summary, because for all readers it will be the first page(s) they read – and some will read nothing else.

The key advice here is: Break it Up . Large, dense blocks of text intimidate readers.

Dividing the Summary text with paragraph headings, bullet points and white space makes the information on a page more inviting and appealing:

• Paragraphs: Break up the Summary into paragraphs that roughly mirror the sections of your business plan
• Brief: Keep each topic as brief as possible
• Subheads: Insert informative topic headings at the beginning of each paragraph to help readers’ quick comprehension
• Bullets: Use bullet points to highlight the most compelling information
• Numbers: Use numbers instead of words where appropriate
• Visuals: Include a (small) chart or graph if it helps to clarify an important point
• Spacing: Use white space to break up the text to make the page look less intimidating. Single space text, but leave an extra line of space between paragraphs.

Because you are limited to so few pages, it may seem counterintuitive to give up space for visual considerations, but these effective techniques make your Summary much more accessible to the business plan readers.

The way you prepare and present the executive summary is an indicator of your professionalism. A polished Summary sheds a favourable light on your business. A sloppy one works against you.

Length: How long is an executive summary?

The executive summary in a business plan should be no more than 2-3 pages in length, with 1 page being perfectly acceptable and often preferable. The advantage to the busy business plan reader is that they are able to skim through this short summary in a few seconds and read it in full in less than 5 minutes .

Sign up for our Newsletter

Get more articles just like this straight into your mailbox.

Related Posts

Recent Posts