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 .
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How To Write an Executive Summary for a Business Plan + Example
Written by Dave Lavinsky
Executive Summary of a Business Plan
The Executive Summary is the most important part of your entire business plan . This is because it’s the first section in your plan, and if it doesn’t excite readers, they won’t continue reviewing it. Importantly, there is a way to ensure your executive summary is compelling and includes the key information readers expect. In this article, you’ll learn how to craft the perfect executive summary for your business plan.
Download our Ultimate Business Plan Template here >
Table of Contents:
What is an Executive Summary?
Why do i need an executive summary.
- How Long Should an Executive Summary Be for a Business Plan?
How To Write an Executive Summary for a Business Plan + Template
- Sample Executive Summary
An executive summary of a business plan gives readers a high-level overview of your business plan and highlights its key points.
The executive summary should start with a brief overview of your business concept. Then it should briefly summarize each of the key elements of your business plan: your industry analysis , customer analysis , competitive analysis , marketing plan , operations plan , management team , financial plan and funding needs.
If presented for funding, the executive summary provides the lender or investor a quick snapshot which helps them determine their interest level and if they should continue reading the rest of the business plan.
An effective executive summary is a quick version of your complete business plan. You need to keep it simple and succinct in order to grab the reader’s attention and convince them it’s in their best interest to keep reading.
As mentioned above, your business plan is a detailed document that requires time to read. Capture the attention of your intended audience with a concise format that provides an compelling overview of your plan to save them time and indicate which parts of the business plan may be most important to read in detail. This increases the odds that your business plan will be read and your business idea understood. This is why you need a well-written executive summary.
How Long Should a Business Plan Executive Summary Be?
When structuring your business plan executive summary, the first thing to keep in mind is that it should be short and comprehensive. The length of your executive summary should never exceed 3 pages; the ideal length is one or two pages.
Finish Your Business Plan Today!
To write a compelling executive summary, follow the steps below and use this free executive summary template as a guide:
1. State the Problem and/or Business Opportunity
Generally there is a gap or a problem in the market which your business aims to solve. This is your problem statement and it must be included in the summary, as potential investors want to understand if the world truly needs your company’s products and/or services.
2. Briefly Describe Your Business Idea
The next thing a reader would want to know is how you plan to approach the problem and solve it. This is your business model and it should briefly describe how your product or service can help solve the problem.
3. Provide Key Information About Your Company History
The best indicator of future success is past success. Your company’s history helps the reader understand how your business has evolved and grown over the years and what you’ve been able to accomplish. Even startups have generally accomplished milestones like choosing a business name, conceiving products, finding a location, etc.
4. Conduct Market Research About Your Industry
Conducting thorough market research will help you detail the industry in which you are operating, it’s size and if any trends are positively or negatively influencing it. This gives readers a sense of the size of the opportunity you are pursuing.
5. Identify the Target Market or Ideal Customer
Every business has a target customer base or a target market on which they focus. Here you will detail your target customers including their demographic and psychographic profiles.
6. Explain Your Competitive Advantage
When you venture into a market or an industry, there are generally other players with which you compete. Knowing your competition is crucial to your success. Readers of your plan want to know who your competitors are, their strengths and in what areas you will have competitive advantage. Discussing the competitive landscape is a crucial component of a strong executive summary.
7. Establish Relevant Milestones For Your Business To Achieve
In addition to showing relevant milestones your company has achieved, you need to explain your timeline for milestones or essential points in the future. Include dates you hope to launch products, achieve sales milestones, hire key employees, etc.
8. Develop a Financial Plan
If you are requesting funding from investors or banks, they will want to know how you are going to their funds. Include key financial information regarding how and where you plan to allocate the funds should be included in the summary. For existing businesses, you should also provide a history/summary of past financial performance. Finally, for all businesses, you need to provide future financial projections so investors can determine whether they might get an adequate return from investing in you and lenders can ascertain whether or not you will be able to repay your debts.
9. Describe the Qualifications of Your Management Team
In this section, you will introduce the key members of your team. The success or failure of your company depends largely on the parties involved. So, any reader surely wants to know how well equipped your team is. Mention key staff members and the experience and skills they bring, in the executive summary.
Whether you’re a large or small business, your executive summary is the first thing someone reads that forms an opinion of your business. Whether they decide to read your detailed business plan or push it aside depends on how good your executive summary is. We hope this guide helps you craft an effective and impactful executive summary. That way, readers will be more likely to read your full plan, request an in-person meeting, and give you funding to pursue your business plans.
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With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!
Looking to get started on your business plan’s executive summary? Take a look at the great executive summary example below.
Business Plan Executive Summary Example
Shoutmouth.com executive summary, business overview.
Launched late last year, Shoutmouth.com is the most comprehensive music news website on the Internet.
Music is one of the most searched and accessed interests on the Internet. Top music artists like Taylor Swift receive over 5 million searches each month. In addition, over 500 music artists each receive over 25,000 searches a month.
However, music fans are largely unsatisfied when it comes to the news and information they seek on the artists they love. This is because most music websites (e.g., RollingStone.com, MTV.com, Billboard.com, etc.) cover only the top eight to ten music stories each day – the stories with mass appeal. This type of generic coverage does not satisfy the needs of serious music fans. Music fans generally listen to many different artists and genres of music. By publishing over 100 music stories each day, Shoutmouth enables these fans to read news on all their favorite artists.
In addition to publishing comprehensive music news on over 1200 music artists, Shoutmouth is a social network that allows fans to meet and effectively communicate with other fans about music, and allows them to:
- Create personal profiles
- Interact with other members
- Provide comments on news stories and music videos
- Submit news stories and videos
- Recommend new music artists to add to the community
- Receive customized news and email alerts on their favorite artists
Success Factors
Shoutmouth is uniquely qualified to succeed due to the following reasons:
- Entrepreneurial track record : Shoutmouth’s CEO and team have helped launch numerous successful ventures.
- Monetization track record : Over the past two years, Shoutmouth’s founders have run one of the most successful online affiliate marketing programs, having sold products to over 500,000 music customers online.
- Key milestones completed : Shoutmouth’s founders have invested $500,000 to-date to staff the company (we currently have an 11-person full-time team), build the core technology, and launch the site. We have succeeded in gaining initial customer traction with 50,000 unique visitors in March, 100,000 unique visitors in April, and 200,000 unique visitors in May.
Unique Investment Metrics
The Shoutmouth investment opportunity is very exciting due to the metrics of the business.
To begin, over the past five years, over twenty social networks have been acquired. The value in these networks is their relationships with large numbers of customers, which allow acquirers to effectively sell to this target audience.
The sales price of these social networks has ranged from $25 to $137 per member. Shoutmouth has the ability to enroll members at less than $1 each, thus providing an extraordinary return on marketing expenditures. In fact, during a recent test, we were able to sign-up 2,000 members to artist-specific Shoutmouth newsletters at a cost of only 43 cents per member.
While we are building Shoutmouth to last, potential acquirers include many types of companies that seek relationships with music fans such as music media/publishing (e.g., MTV, Rolling Stone), ticketing (e.g., Ticketmaster, LiveNation) and digital music sales firms (e.g., iTunes).
Financial Strategy, Needs and Exit Strategy
While Shoutmouth’s technological, marketing and operational infrastructure has been developed, we currently require $3 million to execute on our marketing and technology plan over the next 24 months until we hit profitability.
Shoutmouth will primarily generate revenues from selling advertising space. As technologies evolve that allow us to seamlessly integrate music sampling and purchasing on our site, sales of downloadable music are also expected to become a significant revenue source. To a lesser extent, we may sell other music-related items such as ringtones, concert tickets, and apparel.
Topline projections over the next three years are as follows:
Download our executive summary example business plan PDF .
By writing an executive summary that highlights your business’s potential and key strengths, you can entice your target audience to delve deeper into your full business plan. Remember, this is your chance to make a strong first impression and convince them your idea is worth their investment. Take the time to refine your summary, ensuring it’s concise and informative, and leaves the reader wanting more. With a well-written executive summary, you’ll be well on your way to securing the funding or support you need to turn your business dream into a reality.
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