We all know that pursuing investors for funding or entrepreneurs for partnership is a challenging task. But an engaging executive summary makes it easy for you.
A well-written executive summary acts as the first impression in convincing your readers of anything related to your business.
But the question is how to write one!
See, include all the sections in the summary, highlight all the main points of the business plan, keep the language simple & clear, and voila, you will have a nice executive summary.
But if you want to know more about how to write an engaging executive summary in a business plan with all the tips, then hop on, let’s begin.
What is a business plan executive summary?
An executive summary is a concise and compelling overview of the whole business plan. It includes and highlights all the key points of the plan as an introduction.
It should be clear, well-structured, and engaging, prompting the reader to want to learn more. It also should provide enough information to convey the business plan’s purpose.
Simply put, it is an outline of the business plan. And it helps readers to understand your business before making any decision.
Executive Summary vs. Business Plan
A business plan is a detailed document that has sections like executive summary, company’s description, product or services, market analysis, marketing & sales strategy, management team, and more.
Whereas, an executive summary is a concise overview of the whole business plan. It also acts like an elevator pitch with a brief information about the business.
The length of a business plan can range from ten pages to fifty pages longs, while an executive summary is only a couple of pages long. Generally, the executive summary is written after writing the entire business plan.
Now as we know the difference between a business plan and an executive summary, let’s move forward with the actual purpose of the summary.
Purpose of an executive summary
An Executive summary is one of the core parts of the business plan, and it has many purposes instead of just being a section, let’s see:
Concise overview
An executive summary is a short version of your business plan. Since not everyone has time to read the full plan, a well-crafted summary gives investors a quick overview of your business, helping them make decisions right there and then.
Decision-making
Executive summary plays a crucial role in the decision-making journey. As it presents all the facts and key findings of the business concisely, it helps decision-makers get a quick overview in no time. This way, readers do not have that fear of not making an informed decision.
Accessibility
An executive summary makes a document more accessible to a wider audience. Those who are not an expert in understanding all the technicalities of the plan can get the gist of the entire business plan by reading an executive summary.
Now that you know the importance of writing an executive summary, let us move forward with the topic of how to actually write one.
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How to write an executive summary for a business plan
1. Introduce the purpose
First things first, let your readers know what is this all about—meaning what your document is all about and which business you are doing.
Then introduce the purpose your business plan is going to address. This way you are setting the base of your business plan, giving a clear idea to the readers about why this document is important.
2. Give the company description
Here, briefly describe your company. It includes things like business name, location, owners, company history, and other such things of the business that matter.
If you are just starting up, then focus on the qualifications and responsibilities of your team members.
Highlight any key milestones or achievements demonstrating your company’s growth and success. This section should give readers a clear understanding of what your company does, why it exists, and how it has evolved.
3. State the problem and how will you solve it
Mention the problem in the market first that your product or service will help solve. This will make your readers confident about your market research and your offerings.
Then showcase the innovative solution your business will offer. Highlight the unique value proposition of your business along with it. Also, mention how your product or service is a market fit and has demand in the industry.
4. Outline market analysis
Once you have defined the problem and solution, it is time to mention the market landscape for your business. It should include the market size, expected growth, target market, and all other demographics.
Also, highlight your competitive advantage here. And mention the market share you are going to capture.
5. Define your business model
In this section, mention how your business earns the revenue and how it works. It sets a clear picture of how your company will make a profit and cover the costs.
This information is necessary for investors, so make sure to present it engagingly and realistically.
6. Give an overview of your marketing and sales strategies
Once you start the business, one of the most important things investors would want to know is how will you attract customers. Therefore, this section is all about what strategies you will implement to bring in new customers and how your business will retain them.
It includes the brand message, logo, marketing medium, and all other tools you have for marketing. Apart from that, it also showcases the seriousness of reaching the sales goal of your business.
7. Mention the team you hired or will hire
Provide an overview of the organizational structure and current team. Introduce yourself and your team members, along with their qualifications and roles in the firm.
Also, identify any gaps and the needs of other employees in the business. In short, this section gives readers a clear understanding of your team’s capabilities and how you plan to leverage their skills for the success of your business.
8. Mention your financial summary
In this part, you outline your company’s current brief financial summary and future projections. It includes annual revenue, sales and expenses, and milestones for the coming years.
For existing companies, former years’ revenue and sales numbers can act as evidence to support forecasts. For startups, it is suggested to include all the costs as it will help investors to know completely about the financial picture of your company before making any decision.
9. Funding requirement
If you are preparing your business plan’s executive summary for seeking funding, then make sure to include this section. Make sure what you include in this section and what you ask practically.
Some of the questions you need to answer in this section are:
- How much funding do you need in total?
- How much have you already secured?
- How much are you seeking from the current readers?
- Where are you going to use this funding?
- How much will this funding impact your business?
Answering these questions will help investors get a quick look at your funding requirements without having to wait till the end of your business plan. This saves time and is more efficient.
How long should an executive summary be?
Before you write an executive summary, this question might have occurred to you a lot more times what is the ideal length of a summary, right? Worry not, let’s discuss the length here.
Keep your executive summary as short as possible, because your audience has limited time and attention span.
Generally, executive summaries are 1-2 pages long, but you can exceed this norm if necessary. However, it is necessary to consider the length of the business plan too before you finalize the length of the executive summary.
The key over here is to get the reader’s attention and highlight all the essential points of a detailed business plan.
Tips for writing an effective executive summary
Understand your audience
Before writing the summary, you need to first know and understand your audience. Consider their background, knowledge level, and expectations to ensure that the summary matches their expectations.
Keep it as an elevator pitch
Remember, executive summaries are like elevator pitches. You’re selling your business just by reading the focus points only.
Perhaps readers would want to know every aspect of your business, and with a well-written summary, they can have the essence of the business in no time.
Keep it short and sweet
Ideally, a great executive summary is about a page or two. Whatever length seems ideal to you, make sure to make it a brief and not a detailed one. Keep it as short as you can without missing the needed part.
Prefer to write it last
Though being the first sections, entrepreneurs generally choose to write the executive summary at the end, till then, they have a thorough knowledge of the entire plan.
And it is easier to write the summary after having all the focus points to write about. So, prefer writing the summary in the end.
Use a structured format and highlight the main points first
You have to present your summary in an organized structure, though change the order as per the importance. You can highlight the main things first and then gradually go to the financial plan. In short, in skim reading, your audience should get the crux.
Example of a business plan executive summary
A couple of pages is not enough to give every detail of your business in the summary. So, including everything important and in an engaging manner becomes a challenge.
This even includes writing a compelling introduction to grab readers’ attention. Too much isn’t it? To overcome that, explore the below-given executive summary example as inspiration to write yours.
Business Name: Elegance Bistro
Location: Queens, New York
Type of Business: Restaurant
Overview
Elegance Bistro is a new upscale dining establishment located in the vibrant borough of Queens, New York. Our mission is to provide an elegant and unforgettable dining experience, combining exceptional service with a curated menu of gourmet dishes inspired by global cuisine.
Problem
Despite the diverse culinary scene in Queens, there is a lack of upscale dining options that offer a refined ambiance and high-quality cuisine. Residents and visitors seeking an upscale dining experience often have to travel to Manhattan, leading to a gap in the market that Elegance Bistro aims to fill.
Solution
Elegance Bistro will provide a sophisticated dining experience that showcases the rich diversity of flavors and ingredients found in global cuisine. Our menu will feature a selection of expertly crafted dishes made from locally sourced, seasonal ingredients, ensuring freshness and quality in every bite.
Market Analysis
Queens is a thriving culinary destination, known for its diverse population and vibrant food scene. With a growing number of residents and tourists seeking unique dining experiences, there is a significant opportunity for a high-end restaurant like Elegance Bistro to attract a discerning clientele. There is a competition for the same, but our dining experience with appealing ambiance stands out from all.
Our curated menu includes all the culinary dishes that are popular among New Yorkers and tourists.
Mission
Our mission at Elegance Bistro is to elevate the dining experience in Queens by offering exceptional cuisine, impeccable service, and a warm, inviting atmosphere that celebrates the art of dining.
Financial Position
Based on our market research and projected sales, we anticipate generating annual revenues of $1.5 million in our first year of operation, with a net profit margin of 15%. Our startup costs are estimated at $500,000, which will be primarily used for leasehold improvements, kitchen equipment, and initial marketing efforts.
| Year | Revenue | COGS | Operating expense | EBITDA |
|---|---|---|---|---|
| 1 | $500,000 | $150,000 | $100,000 | $150,000 |
| 2 | $600,000 | $180,000 | $120,000 | $180,000 |
| 3 | $700,000 | $210,000 | $140,000 | $210,000 |
| 4 | $800,000 | $240,000 | $160,000 | $240,000 |
| 5 | $900,000 | $270,000 | $180,000 | $270,000 |
Funding Requirement
To fund our startup costs and initial operating expenses, we are seeking a total investment of $750,000. This will allow us to launch Elegance Bistro successfully and establish a strong presence in the Queens dining scene.
Conclusion
So, finally, you know what it takes to write an engaging executive summary. We hope this has been helpful to you in your writing journey.
If you are still confused or don’t know where to start, then you can always rely on good business plan software like Upmetrics—an AI business plan generator. It will provide you with step-by-step guidance and AI assistance, so you don’t have to roam to and fro for the next step.
