how to make executive summary for business plan

How to Write an Executive Summary (+ Examples)

• September 4, 2024

The executive summary is the cornerstone of any business plan, serving as a gateway for readers to understand the essence of your proposal.

It summarizes the plan’s key points into a digestible format, making it crucial for capturing the interest of investors, partners, and stakeholders.

In this comprehensive guide, we’ll explore what the executive summary is, why we use it, and also how you can create one for your business plan. Let’s dive in!

What is an Executive Summary?

An executive summary is a concise and compelling overview of a business plan (or simply a report), designed to provide readers, such as investors, partners, or upper management, with a quick and clear understanding of the document’s most critical aspects.

For a business plan, it summarizes the key points including the business overview , market analysis , strategy plan timeline and financial projections.

Typically, the executive summary is the first section of a business plan, but it should be written last to ensure it accurately reflects the content of the entire document.

The primary goal of an executive summary is to engage the reader’s interest and encourage them to read the full document.

It should be succinct, typically no more than one to two pages, and articulate enough to stand on its own, presenting the essence of the business proposal or report without requiring the reader to go through the entire document for basic understanding.

Why Do We Use It?

The executive summary plays a crucial role in whether a business plan opens doors to funding, partnerships, or other opportunities . It’s often the first (and sometimes the only) part of the plan that stakeholders read, making it essential for making a strong, positive first impression. As such, we use it in order to:

• Capture Attention: Given the volume of business plans investors, partners, and lenders might receive, an executive summary’s primary function is to grab the reader’s attention quickly. It highlights the most compelling aspects of the business to encourage further reading.
• Save Time: It provides a succinct overview of the business plan, allowing readers to understand the key points without going through the entire document. This is particularly beneficial for busy stakeholders who need to make informed decisions efficiently.
• Facilitate Understanding: An executive summary distills complex business concepts and strategies into a concise format. Therefore, it makes it easier for readers to grasp the business’s core mission, strategic direction, and potential for success.
• Driving Action: By summarizing the financial projections and funding requirements, an executive summary can effectively communicate the investment opportunity. Indeed the investment opportunity, whether to raise money from investors or a loan from a bank, is the most common reason why we prepare business plans.
• Setting the Tone: The executive summary sets the tone for the entire business plan. A well-written summary indicates a well-thought-out business plan, reflecting the professionalism and competence of the management team.

How to Write an Executive Summary in 4 Simple Steps

Here’s a streamlined approach to crafting an impactful executive summary:

1. Start with Your Business Overview

• Company Name: Begin with the name of your business.
• Location: Provide the location of your business operations.
• Business model: Briefly describe how you make money, the producfs and/or services your business offers.

2. Highlight the Market Opportunity

• Target Market : Identify your target market and its size.
• Market Trends : Highlight the key market trends that justify the need for your product or service.
• Competitive Landscape : Describe how your business is positioned to meet this need effectively.

3. Present Your Management Team

• Team Overview: Introduce the key members of your management team and their roles.
• Experience: Highlight relevant experience and skills that contribute to the business’s success.

4. Include Financial Projections

• Financial Summary: Provide a snapshot of key financial projections, including revenue, profits, and cash flow over the next three to five years.
• Funding Requirements: If seeking investment, specify the amount needed and how it will be used.

2 Executive Summary Examples

Here are 2 examples you can use as an inspiration to create yours. These are taken from our coffee shop and hair salon business plan templates.

Coffee Shop Executive Summary

Hair Salon Executive Summary

Related Posts

The 10 Best Vending Machine Franchises of 2024 in the USA

• October 24, 2024

The 10 Best Sports Bar Franchises of 2024 in the US

• October 23, 2024

The 8 Best Tire Franchises of 2024 in the US

Privacy overview.

Daring Leadership Institute: a groundbreaking partnership that amplifies Brené Brown's empirically based, courage-building curriculum with BetterUp’s human transformation platform.

What is Coaching?

Types of Coaching

Discover your perfect match : Take our 5-minute assessment and let us pair you with one of our top Coaches tailored just for you.

Find your coach

We're on a mission to help everyone live with clarity, purpose, and passion.

Join us and create impactful change.

Read the buzz about BetterUp.

Meet the leadership that's passionate about empowering your workforce.

For Business

For Individuals

How to write an executive summary in 10 steps

Whether presenting a business plan, sharing project updates with stakeholders, or submitting a project proposal, an executive summary helps you grab attention and convey key insights.

Think of it as a condensed version of a document, report, or proposal that highlights the most important information clearly and concisely. It's like a "cheat sheet" that gives you a snapshot of the main points without reading the entire thing.

Throughout the article, we'll explore some examples of executive summaries to give you a better understanding of how they can be applied. Plus, we'll provide you with ready-to-use templates and best practices for writing compelling executive summaries.

What is an executive summary?

An executive summary is a concise overview of a longer document or report. It is typically written for busy executives or decision-makers who may not have the time to read the entire document but still need to grasp its key points and recommendations. 

An effective executive summary should capture the essence of the document, highlighting the most important information in a brief and easily understandable way. It should provide a snapshot of the document's purpose, methodology, major findings, and key recommendations. The summary should be written in a way that allows the reader to quickly grasp the main ideas and make informed decisions based on the information presented.

Why do you need to write one?

For a business owner , an executive summary is one of the most important documents you will have. Like a business plan , they help you lay out the potential value of your business and your potential for success. 

Unlike a business proposal, however, an executive summary is designed to be read in a brief amount of time. That makes them ideal for a variety of uses, like project proposals and research summaries. Sending your strategic plan to a prospective investor or stakeholder likely won’t get you far. But a brief report that clearly states your key findings and what’s in it for them might help you — and your proposal — stand out. It isn't all the details. It's what gets you the meeting to share more.

An executive summary is also a business document that can travel without you. It may be presented to other leaders and potential investors. If it’s written well, it will take on a life of its own. You may find that you get support and resources from places you never imagined.

What should be included in an executive summary?

Your executive summary should include brief descriptions of who your product, service, or proposal is for and your competitive advantage. Be sure to introduce your report concisely yet clearly . Note the most important points and its overall purpose––what do you hope to achieve with this report? 

Also, include any necessary background information and statistics about the industry, high-level information about your business model, necessary financial information, or other insights you discuss in the report. Depending on your proposal, you may want to consider summarizing a market analysis of your target market.

Typically, an executive summary follows a structured format, including sections such as:

• Introduction: Provides a brief background and context for the document.
• Objective or purpose: Clearly states the goal of the document and what it aims to achieve.
• Methodology: Briefly describes the approach, data sources, and methods used to conduct the research or analysis.
• Findings: Summarizes the main findings, conclusions, or results derived from the document.
• Recommendations: Outlines the key recommendations or proposed actions based on the findings.
• Conclusion: Provides a concise wrap-up of the main points and emphasizes the significance of the document.

How do you write an executive summary?

When tackling an executive summary, it's all about following a structured approach to ensure you effectively communicate those crucial points, findings, and recommendations. Let’s walk through some steps and best practices to make it a breeze:

Step 1: Get to know the document

Take the time to dive into the full document or report that your executive summary will be based on. Read it thoroughly and identify the main objectives, key findings, conclusions, and recommendations.

Step 2: Know your audience

Think about who you're writing the executive summary for. Consider their knowledge level, interests, and priorities. This helps you tailor the summary to their needs and make it relevant and impactful.

Step 3: Outline the structure

Create an outline for your executive summary with sections like introduction, objective, methodology, findings, recommendations, and conclusion. This way, you'll have a logical flow that's easy to follow.

Step 4: Start strong

Kick off your executive summary with a captivating opening statement. Make it concise, engaging, and impactful to hook the reader and make them want to keep reading.

Step 5: Summarize objectives and methodology

Give a brief overview of the document's objectives and the methodology used to achieve them. This sets the context and helps the reader understand the approach taken.

Step 6: Highlight key findings

Summarize the main findings, conclusions, or results. Focus on the juiciest and most relevant points that support the document's purpose. Keep it clear and concise to get the message across effectively.

Step 7: Present key recommendations

Outline the important recommendations or proposed actions based on the findings. Clearly state what needs to be done, why it matters, and how it aligns with the document's objectives. Make those recommendations actionable and realistic.

Step 8: Keep it snappy

Remember, an executive summary should be short and sweet. Skip unnecessary details, jargon, or technical language . Use straightforward language that hits the mark.

Step 9: Review and polish

Once you've written the executive summary, give it a careful review for clarity, coherence, and accuracy. Make sure it captures the essence of the full document and represents its content faithfully. Take the extra step to edit out any fluff or repetition.

Step 10: Dress to impress

Consider formatting and presentation. Use headings, bullet points, and formatting styles to make it visually appealing and easy to skim. If it makes sense, include some graphs, charts, or visuals to highlight key points.

Tips for writing an effective executive summary

• Adapt your language and tone to suit your audience.
• Keep things concise and crystal clear—say no to jargon.
• Focus on the most important info that packs a punch.
• Give enough context without overwhelming your reader.
• Use strong and persuasive language to make your recommendations shine.
• Make sure your executive summary makes sense even if the full document isn't read.
• Proofread like a pro to catch any pesky grammar, spelling, or punctuation errors.

Executive summary template for business plans

Here's a general template for creating an executive summary specifically for business plans:

[Your Company Name]

[Business Plan Title]

Business overview

Provide a brief introduction to your company, including its name, location, industry, and mission statement . Describe your unique value proposition and what sets your business apart from competitors.

Market analysis

Summarize the key findings of your market research. Provide an overview of the target market, its size, growth potential, and relevant trends. Highlight your understanding of customer needs, preferences, and behaviors.

Product or service offering

Outline your core products or services, including their key features and benefits. Emphasize how your offerings address customer pain points and provide value. Highlight any unique selling points or competitive advantages.

Business model

Explain your business model and revenue generation strategy. Describe how you will generate revenue, the pricing structure, and any distribution channels or partnerships that contribute to your business's success.

Marketing and sales strategy

Summarize your marketing and sales approach. Highlight the key tactics and channels you will use to reach and attract customers. Discuss your promotional strategies, pricing strategies, and customer acquisition plans.

Management team

Introduce the key members of your management team and their relevant experience. Highlight their expertise and how it positions the team to execute the business plan successfully. Include any notable advisors or board members.

Financial projections

Summarize your financial projections, including revenue forecasts, expected expenses, and projected profitability. Highlight any key financial metrics or milestones. Briefly mention your funding needs, if applicable.

Funding requirements

If seeking funding, outline your funding requirements, including the amount needed, its purpose, and the potential sources of funding you are considering. Summarize the expected return on investment for potential investors.

Reiterate the vision and potential of your business. Summarize the key points of your business plan, emphasizing its viability, market potential, and the expertise of your team. Convey confidence in the success of your venture.

Note: Keep the executive summary concise and focused, typically within one to two pages. Use clear and compelling language, emphasizing the unique aspects of your business. Tailor the template to suit your specific business plan, adjusting sections and details accordingly.

Remember, the executive summary serves as an introduction to your business plan and should pique the reader's interest, conveying the value and potential of your business in a concise and persuasive manner.

Executive summary examples

Every executive summary will be unique to the organization's goals, vision, and brand identity. We put together two general examples of executive summaries to spark your creativity and offer some inspiration. 

These are not intended to be used as-is but more to offer ideas for how you may want to put your own executive summary together. Be sure to personalize your own summary with specific statistics and relevant data points to make the most impact.

Example 1: executive summary for a communications business plan

Introduction:

We're thrilled to present our innovative [insert product] that aims to revolutionize the way people connect and engage. Our vision is to empower individuals and businesses with seamless communication solutions that break barriers and foster meaningful connections.

Market opportunity:

The communications industry is evolving rapidly, and we've identified a significant opportunity in the market. With the proliferation of remote work, the need for reliable and efficient communication tools has skyrocketed. Our extensive market research indicates a demand for solutions that prioritize user experience, security, and flexibility.

Product offering:

At [Company Name], we've developed a suite of cutting-edge communication tools designed to meet the diverse needs of our customers. Our flagship product is a unified communication platform that integrates voice, video, messaging, and collaboration features into a seamless user experience. We also offer customizable solutions for businesses of all sizes, catering to their unique communication requirements.

Unique value proposition:

What sets us apart from the competition? Our user-centric approach and commitment to innovation. We prioritize user experience by creating intuitive interfaces and seamless interactions. Our solutions are scalable, adaptable, and designed to keep up with evolving technological trends. By combining ease of use with advanced features, we deliver unparalleled value to our customers.

Target market:

Our primary focus is on small and medium-sized businesses (SMBs) that require efficient and cost-effective communication tools. We also cater to individuals, remote teams, and larger enterprises seeking reliable and secure communication solutions. Our target market encompasses industries such as technology, finance, healthcare, and professional services.

Business model:

To generate revenue, we employ a subscription-based business model. Customers can choose from different plans tailored to their specific needs, paying a monthly or annual fee. We also offer additional services such as customization, integration, and customer support, creating additional revenue streams and fostering long-term customer relationships.

Marketing and sales strategy:

Our marketing strategy centers around building brand awareness through targeted digital campaigns, content marketing, and strategic partnerships. We'll leverage social media, industry influencers, and online communities to reach our target audience. Additionally, our sales team will engage in proactive outreach, nurturing leads and providing personalized consultations to convert prospects into loyal customers.

Team and expertise:

Our team is composed of experienced professionals with a deep understanding of the communications industry. Led by our visionary founder and supported by a skilled and diverse team, we have the expertise to drive innovation, develop robust products, and deliver exceptional customer service. We're passionate about our mission and dedicated to making a lasting impact in the market.

Financial projections:

Based on extensive market research and financial analysis, we anticipate strong growth and profitability. Our financial projections indicate steady revenue streams, with increasing customer adoption and market share. We're committed to managing costs effectively, optimizing our resources, and continuously reinvesting in research and development.

Funding requirements:

To fuel our ambitious growth plans and accelerate product development, we're seeking [funding amount] in funding. These funds will be allocated towards expanding our team, scaling our infrastructure, marketing efforts, and ongoing product innovation. We believe this investment will position us for success and solidify our market presence.

Conclusion:

In summary, [Company Name] is poised to disrupt the communications industry with our innovative solutions and customer-centric approach. We're ready to make a positive impact by empowering individuals and businesses to communicate effectively and effortlessly. Join us on this exciting journey as we redefine the future of communication. Together, we'll shape a connected world like never before.

Example 2: executive summary for a project proposal

[Project Name]

[Project Proposal Date]

Hello! We're thrilled to present our project proposal for [Project Name]. This executive summary will provide you with a high-level overview of the project, its objectives, and the value it brings.

Project overview:

Our project aims to [describe the project's purpose and scope]. It's a response to [identify the problem or opportunity] and has the potential to bring significant benefits to [stakeholders or target audience]. Through meticulous planning and execution, we're confident in our ability to achieve the desired outcomes.

Objectives:

The primary goal of our project is to [state the overarching objective]. In addition, we have specific objectives such as [list specific objectives]. By accomplishing these goals, we'll create a positive impact and drive meaningful change.

Our proposed approach for this project is based on a thorough analysis of the situation and best practices. We'll adopt a structured methodology that includes [describe the key project phases or activities]. This approach ensures efficient utilization of resources and maximizes project outcomes.

The benefits of this project are truly exciting. Through its implementation, we anticipate [describe the anticipated benefits or outcomes]. These benefits include [list specific benefits], which will have a lasting and positive effect on [stakeholders or target audience].

Implementation timeline:

We've devised a comprehensive timeline to guide the project from initiation to completion. The project is divided into distinct phases, with well-defined milestones and deliverables. Our timeline ensures that tasks are executed in a timely manner, allowing us to stay on track and deliver results.

Resource requirements:

To successfully execute this project, we've identified the key resources needed. This includes [list the resources required, such as human resources, technology, equipment, and funding]. We're confident in our ability to secure the necessary resources and allocate them effectively to ensure project success.

A project of this nature requires a well-planned budget. Based on our analysis, we've estimated the required funding to be [state the budget amount]. This budget encompasses all project-related costs and aligns with the anticipated benefits and outcomes.

Our project proposal is an exciting opportunity to address [the problem or opportunity] and create tangible value for [stakeholders or target audience]. With a clear vision, defined objectives, and a robust implementation plan, we're ready to embark on this journey. Join us as we bring this project to life and make a lasting impact. 

Is an executive summary the same as a project plan?

While both are important components of project management and documentation , they serve different purposes and contain distinct information.

An executive summary, as discussed earlier, is a concise overview of a longer document or report. It provides a snapshot of the key points, findings, and recommendations. It focuses on high-level information and aims to provide an overview of the document's purpose, methodology, findings, and recommendations.

On the other hand, a project plan is a detailed document that outlines the specific activities, tasks, timelines, resources, and milestones associated with a project. It serves as a roadmap for project execution, providing a comprehensive understanding of how the project will be carried out.

A project plan typically includes objectives, scope, deliverables, schedule, budget, resource allocation, risk management, and communication strategies. It is intended for project team members, stakeholders, and those directly involved in the execution.

In summary, an executive summary offers a condensed overview of a document's key points, while a project plan provides a comprehensive and detailed roadmap for executing a project.

Executive summaries vs. abstracts

An executive summary is not the same as an abstract. Executive summaries focus on the main points of a proposal. They highlight when and why a reader should invest in the company or project.

An abstract, on the other hand, concentrates on what the business does and its marketing plan. It typically doesn’t include detailed information about finances.

While it is usually compelling, it’s less of an elevator pitch and more of a summary. The goal of an abstract is to inform, not to persuade. On the other hand, the goal of an executive summary is to give readers who are pressed for time just enough information that they’ll want to look further into your proposition.

When do you use an executive summary?

An executive summary is used in various situations where there is a need to present a condensed overview of a longer document or report. Here are some common instances when an executive summary is used:

• Business proposals: When submitting a business proposal to potential investors, partners, or stakeholders, an executive summary is often included. It provides a concise overview of the proposal, highlighting the key aspects such as the business idea, market analysis, competitive advantage, financial projections, and recommended actions.
• Reports and research studies: Lengthy reports or research studies often include an executive summary at the beginning. This allows decision-makers, executives, or other stakeholders to quickly understand the purpose, methodology, findings, and recommendations of the report without going through the entire document.
• Project updates: During the course of a project, project managers may prepare executive summaries to provide updates to stakeholders or higher-level management. These summaries give a brief overview of the project's progress, achievements, challenges, and upcoming milestones.
• Strategic plans: When developing strategic plans for an organization, an executive summary is often included to provide an overview of the plan's goals, objectives, strategies, and key initiatives. It allows executives and stakeholders to grasp the essence of the strategic plan and its implications without reading the entire document.
• Funding requests: When seeking funding for a project or venture, an executive summary is commonly used as part of the funding proposal. It provides a succinct summary of the project, highlighting its significance, potential impact, financial requirements, and expected outcomes.

In general, an executive summary is used whenever there is a need to communicate the main points, findings, and recommendations of a document concisely and efficiently to individuals who may not have the time or inclination to read the entire content. It serves as a valuable tool for understanding and facilitates quick decision-making.

5 ways project managers can use executive summaries

Project managers can use executive summaries in various ways to effectively communicate project updates, status reports, or proposals to stakeholders and higher-level management. Here are some ways project managers can use executive summaries:

• Project status updates: Project managers can provide regular executive summaries to stakeholders and management to communicate the current status of the project. The summary should include key achievements, milestones reached, challenges encountered, and any adjustments to the project plan. It allows stakeholders to quickly grasp the project's progress and make informed decisions or provide guidance as needed.
• Project proposals: When pitching a project idea or seeking approval for a new project, project managers can prepare an executive summary to present the essential aspects of the project. The summary should outline the project's objectives, scope, anticipated benefits, resource requirements, estimated timeline, and potential risks. It helps decision-makers understand the project's value and make an informed choice about its initiation.
• Project closure reports: At the end of a project, project managers can prepare an executive summary as part of the project closure report. The summary should highlight the project's overall success, key deliverables achieved, lessons learned, and recommendations for future projects. It provides a concise overview of the project's outcomes and acts as a valuable reference for future initiatives.
• Steering committee meetings: When project managers present updates or seek guidance from a steering committee or governance board, an executive summary can be an effective tool. The summary should cover the important aspects of the project, such as progress, issues, risks, and upcoming milestones. It ensures that decision-makers are well-informed about the project's status and can provide relevant guidance or support.
• Change requests: When submitting a change request for a project, project managers can include an executive summary to summarize the proposed change, its impact on the project, potential risks, and benefits. It helps stakeholders and decision-makers quickly assess the change request and make informed decisions about its implementation.

Using executive summaries, project managers can efficiently communicate project-related information to stakeholders, executives, and decision-makers. The summaries provide a concise overview of the project's status, proposals, or closure reports, allowing stakeholders to quickly understand the key points and take appropriate action.

When should you not use an executive summary?

While executive summaries are widely used in many situations, there are some cases where they may not be necessary or suitable. Here are a few scenarios where an executive summary may not be appropriate, along with alternative approaches:

• Highly technical documents: If the document contains highly technical or specialized information that requires a detailed understanding, an executive summary alone may not be sufficient. In such cases, it is better to provide the complete document and supplement it with explanatory materials, presentations , or meetings where experts can explain and discuss the technical details.
• Personal or creative writing: Executive summaries are typically used for informational or analytical documents. If the content is more personal in nature, such as a memoir, novel, or creative piece, an executive summary may not be relevant. Instead, focus on providing an engaging introduction or book blurb that entices readers and conveys the essence of the work.
• Short documents: If the document itself is already concise and can be easily read in its entirety, an executive summary may be redundant. In these cases, it is more effective to present the complete document without an additional summary.
• Interactive presentations: In situations where you can present information interactively, such as in meetings, workshops, or conferences, it may be more effective to engage the audience directly rather than relying solely on an executive summary. Use visual aids, demonstrations, discussions, and Q&A sessions to convey the necessary information and capture the audience's attention.

Final thoughts on writing a compelling executive summary

An executive summary isn’t the kitchen sink — it’s the bells and whistles. Geared toward busy decision-makers, these one-pagers communicate your case for action and proposed solutions. When it’s written well, your audience will walk away with an understanding of what needs to be done, why it needs to happen, and why they should help it move forward. 

But writing it well doesn’t just mean spell-checking. It means tailoring your communication to an influential, yet busy and distracted audience. To be effective, you’ll need to write your proposal with empathy and an understanding of what matters to them .

Understand Yourself Better:

Big 5 Personality Test

Allaya Cooks-Campbell

With over 15 years of content experience, Allaya Cooks Campbell has written for outlets such as ScaryMommy, HRzone, and HuffPost. She holds a B.A. in Psychology and is a certified yoga instructor as well as a certified Integrative Wellness & Life Coach. Allaya is passionate about whole-person wellness, yoga, and mental health.

Tips for how to write a LinkedIn summary and examples

How to write a resume summary that works + examples, executive presence: what is it, why you need it and how to get it, how to write a professional development plan for career success, executive development is personalized to leaders everywhere, 12 resume career objective examples and tips for writing one, 3 stand-out professional bio examples to inspire your own, what is executive coaching: benefits for the 2024 workforce, how executive functioning governs daily life activities, how to create a scope of work in 8 steps, 3 problem statement examples and steps to write your own, what’s a project scope, and how do you write one, how the minto pyramid principle can enhance your communication skills, how to make decisions like a multi-billion dollar corporation, cv versus resume demystify the differences once and for all, how to write a memo: 8 steps with examples, stay connected with betterup, get our newsletter, event invites, plus product insights and research..

3100 E 5th Street, Suite 350 Austin, TX 78702

• Platform overview
• Integrations
• Powered by AI
• BetterUp Lead™
• BetterUp Manage™
• BetterUp Care®
• Sales Performance
• Diversity & Inclusion
• Case studies
• ROI of BetterUp
• What is coaching?
• About Coaching
• Find your Coach
• Career Coaching
• Communication Coaching
• Personal Coaching
• News and Press
• Leadership Team
• Become a BetterUp Coach
• BetterUp Briefing
• Center for Purpose & Performance
• Leadership Training
• Business Coaching
• Contact Support
• Contact Sales
• Privacy Policy
• Acceptable Use Policy
• Trust & Security
• Cookie Preferences

How to Write an Executive Summary

9 min. read

Updated December 13, 2023

An executive summary isn’t just the beginning of your business plan – it’s your opening act, your first chance to impress potential investors, banks, clients and other stakeholders.

An effective executive summary gives decision-makers critical information about your business instantly.

Creating an executive summary is more than just a writing exercise. It requires careful crafting and strategic thinking, as well as an ability to balance the needs to be both succinct and comprehensive.

• What is an executive summary?

The executive summary is a brief introduction and summary of your business plan. It introduces your business, the problem you solve, and what you’re asking from your readers. Anyone should be able to understand your business by simply reading this section of your plan.

While structurally it is the first chapter of your plan—you should write it last. Once you know the details of your business inside and out, you will be better prepared to write this section.

• Why write an executive summary?

The business plan executive summary provides quick access to critical information from your more detailed business plan.

It is essential for informing anyone outside of your business. Many people—including investors and bankers—will only read your summary. Others will use it to decide if they should read the rest. For you, it is a snapshot of your business to reference when planning or revising your strategy.

Now if you’re writing a business plan solely for internal use you may not need an executive summary. However, some internal plans may necessitate writing an executive summary for assignment—such as for an annual operations plan or a strategic plan .

It takes some effort to do a good summary, so if you don’t have a business use in mind, don’t do it.

• How long should it be?

Business plan executive summaries should be as short as possible. Your audience has limited time and attention and they want to quickly get the details of your business plan.

Try to keep your executive summary under two pages if possible, although it can be longer if absolutely necessary. If you have a one-page business plan, you can even use that as your executive summary.

Brought to you by

Create a professional business plan

Using ai and step-by-step instructions.

Secure funding

Validate ideas

Build a strategy

• Executive summary outline

Two pages isn’t a ton of space to capture the full scope of your vision for the business. That means every sentence of your executive summary counts.

You will want to immediately capture the reader’s attention with a compelling introduction. Without getting too lengthy, present who you are as an organization, the problem you are seeking to solve, your skills, and why you are the best entity to solve the problem you’ve outlined.

It’s crucial to establish the need or problem your business is solving in a clear manner, in order to convince your audience that it must be addressed. Following that, recommend the solution and show its value. Be clear and firm in your recommendation, making sure to justify your cause and highlighting key reasons why your organization is the perfect fit for the solution you’re proposing. Finally, a strong conclusion is needed to reiterate the main points and wrap up the executive summary.

What to include in your executive summary

1. business overview.

A one-sentence description that explains what you do, why you do it, and how you do it.

Summarize the problem you’re solving in the market and reference any data that solidifies that there is a need.

3. Solution

Describe your product or service and how it addresses the problem you identified.

4. Target market

Who is your ideal customer? Describe who they are, how they’ll benefit, and why they’re an attainable customer base.

5. Competition

Who are your competitors? List out any primary competition as well as alternatives that your customers may consider. Include key details about their current offerings, promotions, and business strategy.

6. Your team

In your executive summary, outline your organizational structure and current team. List out brief explanations of who you and your team are, your qualifications, and what your function will be within the business. It may be valuable to also highlight any gaps in your team and how you intend to fill them. If you have potential partners or candidates in mind, briefly mention them and expand on their qualifications within your full business plan.

7. Financial summary

Highlight key aspects of your financial plan that address sales, expenses, and profitability. Try to keep these in chart or graph form to ensure the information is easy to consume and resonates visually.

8. Funding requirements

This section is only necessary if you’re seeking out funding or pitching to investors. Be sure to throw out your financing number and reasoning upfront, rather than hiding it later on in your plan. It helps investors understand your position, what you’re asking for, and how you’ll use it.

9. Milestones and traction

Add initial sales, pre-sales, newsletter sign-ups, or anything else that showcases customer interest. Outline what steps you’ve already taken to launch your business, the milestones you’ve hit, and your goals and milestones for the next month, six months, year, etc.

Executive summary vs introduction

A common mistake some people make when starting an executive summary outline is thinking it performs the same function as the introduction to their business plan. In fact, the two serve different purposes and contain different types of information, even though they are both essential.

As we’ve discussed, the executive summary is a high-level overview of the entire business plan. The introduction, by contrast, dives deeper into your business, providing information about the nature of your business, the history of your company, your mission statement, products or services, and the specific problem that your business solves.

The introduction is more detailed, and usually comes right after the executive summary.

On the other hand, the introduction gives investors or lenders – anyone reading your business plan – a sense of why they should continue reading. Think of it more as the space to tell stakeholders why you are speaking to them. An executive summary can also serve this purpose, but the introduction is meant to speak more directly to your target audience, while an executive summary could give a larger audience a general overview of your business.

Tips for writing an effective executive summary

Here are a few best practices to make writing your executive summary easier, and ultimately more effective. 

1. Think of an executive summary as your pitch

The executive summary is like an elevator pitch. You’re selling someone on reading your full plan while quickly summarizing the key points. Readers will expect it to cover certain areas of your business—such as the product, market, and financial highlights, at the very least.

While you need to include what’s necessary, you should also highlight areas that you believe will spark the reader’s interest. Remember, you’re telling the brief but convincing story of your business with this summary. Just be sure that you’re able to back it up with the right details with the rest of your business plan. 

2. Write it last

Even though the executive summary is at the beginning of a finished business plan, many experienced entrepreneurs choose to write it after everything else. In theory, this makes it easier to write since all of the information is already written out and just needs to be condensed into a shorter format. 

Now, if you’ve started with a one-page plan, this process is even easier. Just use your one-page plan as a starting point and add additional details to any sections that need it. You may even find that no changes are necessary.  

3. Keep it short

Ideally, the executive summary is short—usually just a page or two, five at the outside—and highlights the points you’ve made elsewhere in your business plan. Whatever length you land on, just focus on being brief and concise. Keep it as short as you can without missing the essentials. 

4. Keep it simple

Form follows function, so don’t overcomplicate or over-explain things. The best executive summaries are a mixture of short text, broken up with bullets and subheadings, and illustrations, such as a bar chart showing financial highlights. 

Run through a legibility test after writing your summary. Is it easy to skim through? Are the right pieces of information jumping out? If the answer to either of those questions is no, then work back through and try breaking up information or adjusting the formatting.

5. Create an executive summary outline based on importance and strengths

Organize your executive summary outline so that the most important information appears first. While there are specific components to include, there is no set order of appearance. So, use the order to show emphasis.

Lead with what you want to get the most attention, and add the rest by order of importance. For example, you may start with the problem because that can add drama and urgency that tees up the solution you provide.

Additional resources to write a great executive summary

Need more information and guidance to craft a convincing executive summary? Check out these in-depth resources and templates.

Key mistakes to avoid when writing an executive summary

Here are the critical mistakes you should avoid when writing your executive summary.

How to write your executive summary for specific audiences

The executive summary should tell your audience exactly what your business is, what it does, and why it’s worth their time. Here’s how you can take it a step further and fine-tune it for specific people.

How to develop a mission statement

Learn to put a heart behind the business and create an easy-to-understand narrative by writing a mission statement.

Executive Summary FAQ

What is in an executive summary?

The executive summary of a business plan is a brief introduction and summary of your business strategy, operations, and goals.

What is the purpose of an executive summary?

An executive summary is typically written to convince someone to read your more detailed plan. For investors, it may be the only thing they look at when deciding if they’d like to hear your pitch. Loan officers may review it to determine if your business seems financially sound. And partners, mentors, or anyone else may use it to determine if they want to be involved with your business.

How do you start an executive summary?

While there is no required order for an executive summary, it’s often recommended that you lead with the problem you’re solving or the purpose of your business. This will help frame your intent for the reader, and ideally make them more interested in learning more.

How do you write a good executive summary?

A good executive summary is brief, convincing, and easy to read. Focus on keeping things short and concise, only including necessary information. Be sure to lead and highlight anything that is especially interesting or important about your business. And after writing, spend some time reviewing and reformatting to make your summary as attractive to read as possible.

Tim Berry is the founder and chairman of Palo Alto Software , a co-founder of Borland International, and a recognized expert in business planning. He has an MBA from Stanford and degrees with honors from the University of Oregon and the University of Notre Dame. Today, Tim dedicates most of his time to blogging, teaching and evangelizing for business planning.

Table of Contents

• What to include
• Writing tips
• Additional resources

Related Articles

10 Min. Read

How to Set and Use Milestones in Your Business Plan

How to Write a Competitive Analysis for Your Business Plan

24 Min. Read

The 10 AI Prompts You Need to Write a Business Plan

3 Min. Read

What to Include in Your Business Plan Appendix

The LivePlan Newsletter

Become a smarter, more strategic entrepreneur.

Your first monthly newsetter will be delivered soon..

Unsubscribe anytime. Privacy policy .

The quickest way to turn a business idea into a business plan

Fill-in-the-blanks and automatic financials make it easy.

No thanks, I prefer writing 40-page documents.

Discover the world’s #1 plan building software

• Credit cards
• View all credit cards
• Banking guide
• Loans guide
• Insurance guide
• Personal finance
• View all personal finance
• Small business
• Small business guide
• View all taxes

You’re our first priority. Every time.

We believe everyone should be able to make financial decisions with confidence. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free.

So how do we make money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. Here is a list of our partners .

How to Write an Executive Summary in 6 Steps

Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

When you’re starting a business, one of the first things you need to do is write a business plan. Your business plan is like a roadmap for your business, so you can lay out your goals and a concrete plan for how you’ll reach them.

Not only is a business plan essential for any business owner, but it’s also a requirement if you decide to apply for small business funding or find investors. After all, before a bank or individual hands over any money, they’ll want to be sure your company is on solid ground (so they can get their money back).

A business plan consists of several pieces, from an executive summary and market analysis to a financial plan and projections. The executive summary will be the first part of your business plan.

If wondering how to write an executive summary has kept you from completing your business plan, we’re here to help. In this guide, we’ll explain what an executive summary is and provide tips for writing your own so your business plan can start strong.

What is an executive summary?

An executive summary is a short, informative, and easy-to-read opening statement to your business plan. Even though it’s just one to two pages, the executive summary is incredibly important.

An executive summary tells the story of what your business does, why an investor might be interested in giving funds to your business, why their investment will be well-spent, and why you do what you do. An executive summary should be informative, but it should also capture a busy reader’s attention.

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Why write an executive summary?

Anyone you’re sending your executive summary and business plan to is likely busy—very busy. An entire business plan is long, involved, and deals with a lot of numbers.

Someone busy wants to get an understanding of your business, and they want to do it quickly, which is to say not by diving into a complicated, 80-page business plan. That’s where your executive summary comes in.

An executive summary provides just the opportunity to hook someone’s interest, tell them about your business, and offer a clear selling point as to why they should consider investing in your business.

Your executive summary is your chance to sell your business to potential investors and show them your business is worth not only their money but also their time.

What to include in an executive summary

By its nature, an executive summary is short. You must be able to clearly communicate the idea of your business, what sets you apart, and how you plan to grow into a successful enterprise.

The subsequent sections of your business plan will go into more detail, but your executive summary should include the most critical pieces of your business plan—enough to stand on its own, as it’s often the only thing a prospective investor will read. Here’s what your executive summary should include—consider it an executive summary template from which you can model your own.

1. The hook

The first sentence and paragraph of your executive summary determine whether or not the entire executive summary gets read. That’s why the hook or introduction is so important.

In general, a hook is considered anything that will get a reader’s attention. While an executive summary is a formal business document, you do want your hook to make you stand out from the crowd—without wasting time.

Your hook can be sharing something creative about your company, an interesting fact, or just a very well-crafted description of your business. It’s crucial to craft your hook with the personality of your reader in mind. Give them something that will make your company stand out and be memorable among a sea of other business plans.

Grab their attention in the first paragraph, and you’re much more likely to get your executive summary read, which could lead to an investment.

2. Company description summary

Now that you’ve hooked your reader, it’s time to get into some general information about your business. If an investor is going to give you money, after all, they first need to understand what your company does or what product you sell and who is managing the company.

Your company description should include information about your business, such as when it was formed and where you’re located; your products or services; the founders or executive team, including names and specific roles; and any additional details about the management team or style.

3. Market analysis

Your market analysis in the executive summary is a brief description of what the market for your business looks like. You want to show that you have done your research and proven that there is a need for your specific product or services. Some questions you should answer:

Who are your competitors?

Is there a demand for your products or services?

What advantages do you have that make your business unique in comparison to others?

To reiterate, stick to the highlights of your market analysis in your executive summary. You’ll provide a complete analysis in a separate section of your business plan, but you should be able to communicate enough in the executive summary that a potential investor can gauge whether your business has potential.

4. Products and services

Now that you’ve established a need in the market, it’s time to show just how your business will fill it. This section of your executive summary is all about highlighting the product or service that your company offers. Talk about your current sales, the growth you’ve seen so far, and any other highlights that are a selling point for your company.

This is also a good time to identify what sets your business apart and gives you a competitive advantage. After all, it’s unlikely that your business is the first of its kind. Highlight what you do better than the competition and why potential customers will choose your product or service over the other options on the market.

5. Financial information and projections

In this section of your executive summary, you want to give the reader an overview of your current business financials. Again, you’ll go more in-depth into this section later in your business plan, so just provide some highlights. Include your current sales and profits (if you have any), as well as what funding you’re hoping to acquire and how this will affect your financials in the next few years.

This is also where you can explain what funding, if any, you’ve received in the past. If you paid back your loan on time, this is an especially bright selling point for potential lenders.

6. Future plans

While asking for what funding you need is essential, you’ve also got to make clear what you’re going to use that funding for. If you’re asking for money, you want the person to know you have a plan to put those funds to good use.

Are you hoping to open another location, expand your product line, invest in your marketing efforts? This final section of your executive summary should detail where you want your business to go in the future, as well as drive home how funding can help you get there.

Tips for writing an executive summary

Even if you include each part of a good executive summary, you might not get noticed. What is written can be just as important as how it’s written. An executive summary has to strike a delicate balance between formal, personable, confident, and humble.

1. Be concise

An executive summary should include everything that’s in your business plan, just in a much shorter format. Writing a concise executive summary is no easy task and will require many revisions to get to the final draft. And while this is the first section of your executive summary, you’ll want to write it last, after you’ve put together all the other elements.

To choose your most important points and what should be included in the executive summary, go through your business plan, and pull out single-line bullet points. Go back through those bullet points and eliminate everything unnecessary to understanding your business.

Once you have your list of bullet points narrowed down, you can start writing your executive summary. Once it’s written, go back in and remove any unnecessary information. Remember, you should only be including the highlights—you have the rest of your business plan to go into more detail. The shorter and clearer your executive summary is, the more likely someone is to read it.

2. Use bullet points

One simple way to make your executive summary more readable is to use bullet points. If someone is reading quickly or skimming your executive summary, extra whitespace can make the content faster and easier to read.

Short paragraphs, short sentences, and bullet points all make an executive summary easier to skim—which is likely what the reader is doing. If important numbers and convincing stats jump out at the reader, they’re more likely to keep reading.

3. Speak to your audience

When writing your executive summary, be sure to think about who will be reading it; that’s who you’re speaking to. If you can personalize your executive summary to the personality and interests of the person who will read it, you’re more likely to capture their attention.

Personalizing might come in the form of a name in the salutation, sharing details in a specific way you know that person likes and the tone of your writing. An executive summary deals with business, so it will generally have a formal tone. But, different industries may be comfortable with some creativity of language or using shorthand to refer to certain ideas.

Know who you’re speaking to and use the right tone to speak to them. That might be formal and deferential, expert and clipped, informal and personable, or any other appropriate tone. This may also involve writing different versions of your executive summary for different audiences.

4. Play to your strengths

One of the best ways to catch the attention of your reader is to share why your business is unique. What makes your business unique is also what makes your business strong, which can capture a reader’s interest and show them why your business is worth investing in. Be sure to highlight these strengths from the start of your executive summary.

5. Get a test reader

Once you’ve written and edited your executive summary, you need a test reader. While someone in your industry or another business owner can be a great resource, you should also consider finding a test reader with limited knowledge of your business and industry. Your executive summary should be so clear that anyone can understand it, so having a variety of test readers can help identify any confusing language.

If you don’t have access to a test reader, consider using tools such as Hemingway App and Grammarly to ensure you’ve written something that’s easy to read and uses proper grammar.

How long should an executive summary be?

There’s no firm rule on how long an executive summary should be, as it depends on the length of your business plan and the depth of understanding needed by the reader to fully grasp your ask.

That being said, it should be as short and concise as you can get it. In general, an executive summary should be one to two pages in length.

You can fudge the length slightly by adjusting the margin and font size, but don’t forget readability is just as important as length. You want to leave plenty of white space and have a large enough font that the reader is comfortable while reading your executive summary. If your executive summary is hard to read, it’s less likely your reader will take the time to read your business plan.

What to avoid in an executive summary

While the rules for writing a stellar executive summary can be fuzzy, there are a few clear rules for what to avoid in your executive summary.

Your executive summary should avoid:

Focusing on investment. Instead, focus on getting the reader to be interested enough to continue and read your business plan or at least schedule a meeting with you.

Clichés, superlatives, and claims that aren’t backed up by fact. Your executive summary isn’t marketing material. It should be straightforward and clear.

Avoiding the executive summary no-nos is just as important as striking the right tone and getting in the necessary information for your reader.

The bottom line

While an executive summary is short, it’s challenging to write. Your executive summary condenses your entire introduction, business description, business plan, market analysis, financial projections, and ask into one to two pages. Condensing information down to its most essential form takes time and many drafts. When you’re putting together your business plan’s executive summary, be sure to give yourself plenty of time to write it and to seek the help of friends or colleagues for editing it to perfection.

However, some tools make crafting a business plan, including your executive summary, a simpler process. A business plan template is a great place to start, and business plan software can especially help with the design of your business plan. After all, a well-written executive summary can make all the difference in obtaining funding for your business, so you’ll want all the help you can get.

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

On a similar note...

LIMITED TIME OFFER

Ink Business Unlimited® Credit Card

Business Plan Executive Summary with Example

Written by Dave Lavinsky

Executive Summary of a Business Plan

The Executive Summary is the most important part of your 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, other helpful resources for writing your business plan.

An executive summary of a business plan gives readers an 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 section 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. Capturing the reader’s attention with a concise format that provides an interesting overview of your plan saves them time and indicates 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.

When structuring your 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 our executive summary template as a guide:

State the Problem and/or Business Opportunity

Briefly describe your business idea, provide key information about your company history, conduct market research about your industry, identify the target market or ideal customer, explain your competitive advantage, establish relevant milestones for your business to achieve, develop a financial plan, describe the qualifications of your management team.

To help you get started, you can download our executive summary example business plan PDF here.

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 your executive summary 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.

Looking to get started on your business plan’s executive summary? Take a look at the business plan executive summary example below!

Finish Your Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

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 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:

• 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
• 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.

3 ways to transform your enterprise project management

Watch a live demo and Q&A session to help you streamline goal-setting, accelerate annual planning, and automate how teams intake strategic work.

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

7 steps to crafting a winning event proposal (with template)

How Asana drives impactful product launches in 3 steps

How to streamline compliance management software with Asana

New site openings: How to reduce costs and delays

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

• Starting a Business
• Growing a Business
• Small Business Guide
• Business News
• Science & Technology
• Money & Finance
• For Subscribers
• Write for Entrepreneur
• Tips White Papers
• Entrepreneur Store
• United States
• Asia Pacific
• Middle East
• United Kingdom
• South Africa

Copyright © 2024 Entrepreneur Media, LLC All rights reserved. Entrepreneur® and its related marks are registered trademarks of Entrepreneur Media LLC

How to Write a Business Plan Executive Summary That Sells Your Idea Here's an easy-to-follow outline to create an impactful business plan executive summary.

By Eric Butow

Key Takeaways

• The purpose of an executive summary
• Common mistakes to avoid

Opinions expressed by Entrepreneur contributors are their own.

This is part 4 / 9 of Write Your Business Plan: Section 3: Selling Your Product and Team series.

The first part of your plan that anybody will see, after the title page and table of contents, is the executive summary. This could be considered an expanded table of contents (in prose form) because it's more than an introduction to the rest of the plan. It's supposed to be a brief look at the key elements of the whole plan—and it's critical.

Executive Summaries Sell Ideas

The actual executive summary should be only a page or two. In it you may include your mission and vision statements, a brief sketch of your plans and goals, a quick look at your company and its organization, an outline of your strategy, and highlights of your financial status and needs. If you've ever read a CliffsNotes version of a classic novel, you get the idea. Your executive summary is the CliffsNotes of your business plan.

Related: Executive Summary

Labor over your summary. Polish it. Refine it. Ask friends and colleagues to take a look at it, and then take their suggestions to heart. If your plan isn't getting the response that you want when you put it to work, suspect a flaw in the summary. If you get a chance to look at another plan that was used to raise a pile of cash, give special scrutiny to the executive summary.

The summary is the most important part of your whole plan. Even if a plan is relatively short, it's difficult for most people to keep that much information in their minds at once. It's much easier to get your arms around the amount of information—just one or two pages—in an executive summary. Your plan is going to be judged on what you include in the summary and on how well you present it.

A good rule of thumb for writing an effective and efficient business plan is to avoid repeating information. Brief is better and clearer, and needless repetition may annoy some readers and confuse others. Take extra care when writing your summary. You'll be glad you did.

Related: How to Craft a Business Plan That Will Turn Investors' Heads

Ultimately, you want the executive summary to be as strong as possible because it is also the first thing people read in your plan, and we all know the power of a strong first impression. This is where you want to wow people and make them think. This is like the coming attractions, or trailers, at the movie theater. You want that trailer to be enticing and bring the audience members back to see the film. Likewise, you want your readers to want to read your plan.

Your Business Plan's Elevator Pitch

As Tim Berry writes in his article How to Write an Executive Summary : "The executive summary is like an elevator pitch. You're selling someone on reading your full plan while quickly summarizing the key points. Readers will expect it to cover certain areas of your business—such as the product, market, and financial highlights, at the very least. While you need to include what's necessary, you should also highlight areas that you believe will spark the reader's interest. Remember, you're telling the brief but convincing story of your business with this summary. Just be sure that you're able to back it up with the right details with the rest of your business plan."

Related: How to Write a Business Plan

When Should You Write Your Executive Summary?

Because the executive summary comes first in your plan, you may think you should write it first as well. Actually, you should write it last, after you've spent considerable time mulling over every other part of your plan. Only then will you truly be able to produce a summary of all that is there. Returning to the CliffsNotes analogy, it's impossible to summarize a book until the book is written.

Purposes of the Executive Summary

The executive summary has to perform a host of jobs. First and foremost, it should grab the reader's attention. It has to briefly hit the high points of your plan. It should point readers to questions requiring detailed responses to the full-length sections of your plan where they can get answers. It should ease the task of anybody whose job it is to read it, and it should make that task enjoyable by presenting an interesting and compelling account of your company.

The first question any investor has is, "How much?" followed closely by, "When will I recoup my investment?" Perceived risk and exit strategies are supportive information, and these in turn are supported by the quality of the management team and the proposed strategies.

Related: Why You Shouldn't Send Your Business Plan to Investors

It doesn't much matter whether you are presenting the plan to a family member, friend, banker, or sophisticated investors such as investment bankers or venture capitalists. They all need the same information. Concealing the amount and terms will only lessen your chances of successful financing.

How Long Should an Executive Summary Be?

Five minutes. This is how long an average reader will spend with your plan. If you can't convey the basics of your business in that time, your plan is in trouble. So make sure your summary, at least, can be read in that time and that it's as comprehensive as possible within that constraint. If you are using a deck, limit yourself to one slide and one minute of comments.

Related: How to Create a Business Plan Investors Will Love

Points to Include in an Executive Summary

A suggested format for an executive summary:

The business idea and why it is necessary. What problem does it solve?

• How much will it cost, and how much financing are you seeking?
• What will the return be to the investor? Over what length of time?
• What is the perceived risk level?
• Where does your idea fit into the marketplace?
• What is the management team?
• What are the product and competitive strategies?
• What is your marketing plan?
• What is your exit strategy?

If you can address each of these in two or three sentences, you will have a twenty to twenty-seven-sentence executive summary.

Company Description

If your company is complex, you'll need a separate section inside the plan with a heading like "Company Description" to describe its many product lines, locations, services, or whatever else it is that makes it a little too complicated to deal with quickly. In any event, you provide a brief description, no longer than a few sentences, of your company in the executive summary. And for many firms, this is an adequate basic description of their company. Here are some one- or two-sentence (mock) company descriptions:

John's Handball Hut is the Hamish Valley's leading purveyor of handball equipment and clothing.

Boxes Boxes Boxes Inc. will provide the people of the metropolitan area with a comprehensive source for packing materials, containers, and other supplies for the do-it-yourself move.

Salem Segway Witch Tours offers tourists the only Segway tours of the infamous home of the seventeenth-century witch trials.

Related: Turn Your Business Plan Into Money!

Optional Information

The following items are not a necessity in your business plan: mission statement and corporate vision. If you have honed either down to a clear and concise sentence, by all means, use it in your plan.

Mission Statement

A mission statement is a sentence or two describing the company's function, market, competitive advantages, and business goals and philosophies.

Many mission statements communicate what your business is about and should include a description of what makes you different from everybody else in your field. Mission statements have a place in a plan: They help investors and other interested parties get a grip on what makes your company special. A mission statement should be clearly written. Here are some (again, mock) examples:

River City Roadsters buys, restores, and resells classic American cars from the 1950s and 1960s to antique-auto buffs throughout central Missouri.

Captain Curio is the Jersey Shore's leading antique store, catering to high-quality interior decorators and collectors across the tri-state area.

August Appleton, Esq., provides low-cost legal services to personal- injury, workers' compensation, and age-discrimination plaintiffs in Houston's Fifth Ward.

Related: How to Use Your Business Plan Most Effectively

Corporate Vision

A mission statement describes the goals and objectives you could "reasonably" expect to accomplish. A small software company whose mission statement included the goal of "putting Microsoft out of business" would be looked upon as foolishly naive.

In a vision statement, however, just those sorts of grandiose, galactic-scale images are perfectly appropriate. When you "vision"—to borrow the management consultant's trick of turning nouns into verbs—you imagine the loftiest heights you could scale, not the next step or several steps on the ladder.

Does a vision statement even have a place in a business plan? You could argue that it doesn't, especially because many include personal components such as "to love every minute of my work and always feel I'm doing my best." But many investors deeply respect visionary entrepreneurs. So, if you feel you have a compelling vision, there's no reason not to share it in your plan.

Related: 6 Tips for Making a Winning Business Presentation

Extract the Essence

The key to the executive summary is to pick out the best aspects of every part of your plan. In other words, you want to extract the essence. Instead of describing everyone in your company, talk only about your key managers. Instead of talking about all your products, mention only the major ones or discuss only product lines instead of individual products. It's a highlight reel, so to speak.

Article Tools and Summarizing the Summary

Within the overall outline of the business plan, the executive summary will follow the title page. The summary should tell the reader what you are planning to do. All too often, the business owner's desires are buried and lost when the reader scrolls through. Clearly state what you are planning to do (your ideas) and what you are seeking in the summary.

The statement should be kept short and businesslike, ideally no more than half a page. It could be longer, depending on how complicated the use of funds may be, but the summary of a business plan, like the summary of a loan application, is generally no more than one page. Within that space you'll need to provide a synopsis of the entire business plan. Key elements that should be included are:

Financial requirements. Clearly states the capital needed to start or expand the business. Detail how the capital will be used and the equity, if any, that will be provided for funding. If the loan for initial capital will be based on security instead of equity within the company, you should also specify the source of collateral.

Related: The One-Paragraph Start-Up Plan

Business concept. Describes the business, its product(s), and the market it will serve. It should point out just exactly what will be sold, to whom, and why the business will hold a competitive advantage.

Financial features. Highlights the important financial points of the business including sales, profits, cash flows, and return on investment. Current business position. Furnishes relevant information about the company, its legal form of operation, when it was formed, the principal owners, and key personnel.

Major achievements. Details any developments within the company that are essential to the success of the business. Major achievements include items like patents, prototypes, location of a facility, any crucial contracts that need to be in place for product development, or results from any test marketing that has been conducted.

When writing your statement of purpose, don't waste words. If the executive summary is eight pages, nobody's going to read it because it will be very clear that the business, no matter what its merits, won't be a good investment because the principals are indecisive and don't really know what they want. Make it easy for the reader to realize at first glance both your needs and capabilities.

Related: The Main Objectives of a Business Plan

Owner of Butow Communications Group

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick Red Arrow

• U.S. Diners Are Feeding the $1 Trillion Restaurant Industry Like Never Before. Here's Why — and What They're Hungry for, According to Resy's CEO.
• Lock SearchGPT is About to Change How Customers Find Your Business. Are You Ready?
• AI Startups Received $2.9 Billion in Funding Last Quarter. These 3 U.S. Companies Received a Lot of It — And You've Probably Never Heard of Them.
• Lock Gen Xers Earning Up to $100,000 a Year Won't Retire Like Boomers Did. They're Embracing This Strategy Instead.
• 'We Are Not Red or Blue — We Are Golden': McDonald's Tells Employees It's Non-Political After Trump Visit
• Lock In Her Late 30s, She Pursued Another Creative Side Hustle — Then Turned It Into a Multimillion-Dollar Business

Most Popular Red Arrow

You have one month left to buy a house, according to barbara corcoran. here's why..

"If you are planning on waiting a year and seeing where interest rates go, you are out of your mind," Corcoran said.

These 3 Side Hustles Make the Most Money While Working Fewer Hours, According to a New Survey

The survey also found that having a side hustle doubled as a path to becoming more employable.

The McRib Is Back, But Only at Select McDonald's — Here's Where to Find It

This scarcity is nothing new. In 2022, McDonald's announced a "Farewell Tour" for the McRib, suggesting that it might be the last time customers could get their hands on it.

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Meta Fires Employee Making $400,000 Per Year Over a $25 Meal Voucher Issue

Other staff members were fired for the same reason, per a new report.

In Her Late 30s, She Pursued Another Creative Side Hustle — Then Turned It Into a Multimillion-Dollar Business

Gara Post had built one successful celebrity-magnet business before, so she decided to do it again.

Successfully copied link

AI ASSISTANTS

Upmetrics AI Your go-to AI-powered business assistant

AI Writing Assist Write, translate, and refine your text with AI

AI Financial Assist Automated forecasts and AI recommendations

AI Research Assist Your go-to AI-powered research assistant

TOP FEATURES

AI Business Plan Generator Create business plans faster with AI

Financial Forecasting Make accurate financial forecasts faster

INTEGRATIONS

QuickBooks Sync and compare with your QuickBooks data

Strategic Planning Develop actionable strategic plans on-the-go

AI Pitch Deck Generator Use AI to generate your investor deck

Xero Sync and compare with your Xero data

See how easy it is to plan your business with Upmetrics: Take a Tour  →

AI-powered business planning software

Very useful business plan software connected to AI. Saved a lot of time, money and energy. Their team is highly skilled and always here to help.

- Julien López

BY USE CASE

Secure Funding, Loans, Grants Create plans that get you funded

Starting & Launching a Business Plan your business for launch and success

Validate Your Business Idea Discover the potential of your business idea

E2 Visa Business Plan Create a business plan to support your E2 - Visa

Business Consultant & Advisors Plan with your team members and clients

Incubators & Accelerators Empowering startups for growth

Business Schools & Educators Simplify business plan education for students

Students & Learners Your e-tutor for business planning

• Sample Plans

Plan Writing & Consulting We create a business plan for you

Business Plan Review Get constructive feedback on your plan

Financial Forecasting We create financial projections for you

WHY UPMETRICS?

Reviews See why customers love Upmetrics

Blogs Latest business planning tips and strategies

Strategic Planning Templates Ready-to-use strategic plan templates

Business Plan Course A step-by-step business planning course

Customer Success Stories Read our customer success stories

Help Center Help & guides to plan your business

Ebooks & Guides A free resource hub on business planning

Business Tools Free business tools to help you grow

How to Write a Great Executive Summary in a Business Plan

Free Executive Summary Template

• March 2, 2024
• 11 Min Read

Get started with Upmetrics Al

• 400+ sample business plans
• Al-powered financial planning
• Collaborative workspace

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.

Create winning Business Plans with our

AI Business Plan Generator

Plans starting from $7/month

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

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.

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.

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.

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.

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.

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. 

Build your Business Plan Faster

with step-by-step Guidance & AI Assistance.

Frequently Asked Questions

Is executive summary first in the business plan.

Yes, an executive summary is the first chapter of the business plan. Yet, people prefer to write it at the last, after having the full knowledge of the whole business plan.

What writing style should I use?

An executive summary serves as the introduction to the business plan. So, ideally, it should be in a professional tone. However, whichever writing style you choose, make sure it is clear, concise, engaging, and maintains professionalism. 

What are the key elements of an effective executive summary?

Key elements of an effective executive summary are:

• Introduction
• Problem statement
• Market analysis
• Value proposition
• Business model
• Financial Overview
• Implementation plan
• Call to action

By including these key elements in your executive summary, you can effectively communicate the key points of your business and make a strong impression on your audience.

What is the best format for an executive summary?

The best format for an executive summary is one that is clear, concise, and well-organized.

It should provide a brief overview of the main points of the document, including the purpose, problem & solution, market analysis, unique value proposition, business model, financial position, team, milestones, funding requirements, and call to action.

The format should be easy to read and understand, with headings and subheadings to break up the text.

When should I update my executive summary?

You should update your executive summary whenever any necessary changes to your business impact the information in the summary.

If there are no frequent changes, then you should change your executive summary at least once in a quarter, two quarters, or a year.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

Reach Your Goals with Accurate Planning

How to Write a Business Plan Executive Summary

What is the Executive Summary?

A business plan executive summary is a short overview of your business plan for investors who are interested in learning more about your startup or existing business. It should be concise, engaging, and informative.

What is the Purpose of the Business Plan Executive Summary?

The purpose of an executive summary is to give potential investors insight into your goals and intentions as well as an understanding of the specifics surrounding your business. It includes all the information the reader needs to know in order to make an investment decision.

The executive summary is the first thing that your audience will read to get an idea about what your business is all about. You can make it easy for them by providing a concise explanation of what your business does, why it’s needed, how you plan on making money from it, and what customers you’re targeting. This means that the document needs to cover all these important points while being brief enough to not scare away readers who might want more information about your business venture.

How Long Should a Business Plan Executive Summary Be?

The executive summary for a business plan should generally be between one and three pages long; more than that may appear excessive to the reader, while less may not provide enough information to convince an investor to provide funding for your company.

Steps to Writing an Executive Summary

• Write the Executive Summary Last . Once you’ve completed writing your entire business plan, you’ll have learned the key points which set your business apart and which should convince readers to join you.
• Make a List of the Most Important Points . Write a sentence or bullet point for each argument you want to include in the executive summary. Include all the things you want to cover in your summary, including market research and analysis, management team, financial information, product development plans, and projected growth plans. You can also use headers to keep your thoughts organized.
• Describe Your Company’s Unique Background . Potential investors will want to know what makes you qualified to execute on your ideas, so here’s where you elaborate on all of your experience and insight into the business world. Include any other projects that your team members have been successful with in the past along with information regarding why you’re qualified to achieve the business’ goals.
• Identify Your Product or Service . You need to provide a description that gives potential investors a clear image of what you’re offering whether it’s something tangible, like a product, or something intangible, like software or a service.
• Explain the Benefits of Your Product or Service . This is a key part of your executive summary. Here you need to identify why your product or service is better than other options and how it appeals to your target audience.
• Address Issues or Concerns Head On . Your potential investors are going to want to know if there are any risks involved with working with their company so they can decide if they want to take them on. Here you need to talk about the problems that may arise from implementing your plan and how they can be addressed if or when they happen.
• Describe Your Management Team . Document the qualifications of your team and how your team has the experience and expertise to make your company a success.

Tips for a Great Executive Summary

Make it short but informative. If you can summarize the key points in just one page, do it. If you need up to 3 pages to detail the key information, that’s ok too.

Investors invest in people more than ideas. The most successful business plan summaries highlight the founders’ passion and enthusiasm for their project as well as their background and achievements. Investors want to know about the team members involved in the venture – who are they? Why do they matter? Who is managing whom? How experienced are the entrepreneurs?

Explain exactly what your product or service does. This includes how it will benefit customers and why there’s a need for it. You should also show how your business is different and why you’re better than the competition.

Make sure you proofread everything. It all comes down to attention to detail, so make sure there are no spelling mistakes or grammatical errors before you distribute the document. Not only will this make it look professional, but it’ll also show potential investors that you respect their time and don’t plan on wasting it by making careless mistakes during your business endeavors.

Business Plan Executive Summary Example

The executive summary is a brief overview of your business that serves as the first thing an investor will read when they consider investing in your business. It should be concise and informative without sounding like a marketing brochure. It includes all the information needed for them to make their decision about whether or not they want to invest in your business venture.

Below is an example of an executive summary:

Hosmer Sunglasses Executive Summary

Company & concept.

Hosmer Sunglasses (hereinafter referred to as “Hosmer” or “the Company”), is a California-based sunglass manufacturer offering the most cutting-edge sunglass frames in the world today. Along with a chic appearance, DNS frames have a unique characteristic that satisfies sport enthusiast consumers – silicon hinges. These hinges are exceptionally flexible and can be bent from a 90-degree angle to a 180-degree angle without breaking. This characteristic results in an intricate blend of comfort and durability heretofore unseen in the sunglass industry.

The Hosmer brand is poised for success in the U.S., and throughout North America, because it is a proven, unique product with meaningful consumer benefits. Consider the following:

• The Hosmer brand is currently distributed in France, Germany, Belgium, Spain, and England, where over the past two years, over 1 million pairs have been sold per year.
• The brand’s success in fashion-conscious France and western Europe should translate well to fashion-conscious Americans.
• Hosmer’s hinge differentiates the brand from every other sunglass company. It is a unique product difference that provides consumers with both fashion and performance, two key consumer needs.
• Hosmer recently launched U.S. operations and has already sold Hosmer sunglasses through nearly 15 retailers in four western states, and has established endorsements with over 20 sports celebrities.

Hosmer has a solid foundation from which to grow, great products with unique features, a superb management team, and an ideal climate to break into the $2.9 billion U.S. sunglass industry.

Industry Analysis

According to the Sunglass Association of America, retail sales of plano (non-prescription) sunglasses, clip-on sunglasses, and children’s sunglasses (hereinafter collectively referred to as “sunwear”) totaled $2.9 billion last year. Premium-priced sunglasses are driving the plano sunwear market. Plano sunglasses priced at $100 or more accounted for more than 49% of all sunwear sales among independent retail locations last year.

The Sunglass Association of America has projected that the dollar volume for retail sales of plano sunwear will grow 1.7% next year. Plano sunglass vendors are also bullish about sales in this year and beyond as a result of the growth of technology, particularly the growth of laser surgery and e-commerce.

Customers and Competition

Buyers of premium sports sunglasses are typically males aged 15-35 who participate in non-traditional outdoor sports referred to as “extreme sports” — i.e., skateboarding, snowboarding, surfing, mountain bike riding, and motorcycling. They also include participants of certain traditional sports, including skiing, volleyball, and golf.

Customer ratings show that a key need of extreme sports participants with regards to sunglasses is durability. While many participants are satisfied with the looks of sunglasses by manufacturers such as Oakley, they vigorously complain that such glasses tend to break easily. Since sunglasses are most prone to break at the hinge, and since Hosmer sunglasses have silicon hinges, they are unlikely to break. And, although several companies market premium sports sunglasses to this customer base, none manufactures sunglasses with silicon hinges or with the superior quality of DNS frames.

Within the premium sunglass market, it is projected that Hosmer’s primary competitors will be Smith, Dragon, Arnette (owned by Luxottica Group), Spy, Black Flys, Oakley, and Bolle.

Marketing Plan

Hosmer’s initial target market is males aged 15-35 who participate in the extreme and traditional sports noted above. This group consists primarily of “early adopters” who are most likely to be attracted to the unique Hosmer brand. Penetrating this segment will build a “buzz” around the brand, which will cause other customer groups to purchase the product soon thereafter.

Hosmer will initially offer the 8 DNS frames that have hinges. These frames will be available in a variety of colors and lens types, resulting in a selection of approximately 50 different SKUs. Hosmer controls the lenses it installs in the DNS frames. Currently, the Company uses Paletz Sulter lenses and is considering a switch to Sola lenses for some or all its frames. Both Paletz Sulter and Sola are top-notch brands, either of which would protect Hosmer wearers from the well-documented perils of excessive exposure to sunlight. By virtue of the superior design and quality of both its frames and lenses, Hosmer’s sunglasses command a premium price of $90 to $130.

Distribution will be developed through a network of representatives. At the outset, Hosmer will utilize the following outlets for distribution of the Hosmer brand: (1) independent sporting goods specialty stores; (2) sporting goods retail chains; (3) sunglass specialty stores; (4) specialty/trendy stores; and (5) optical retailers.

Hosmer has developed a comprehensive promotions strategy. It will market to retailers through advertisements in trade journals and trade show exhibitions, in addition to direct sales from representatives. Consumers will be targeted via grassroots marketing campaigns including attending and sponsoring various surfing events, biking events, and skateboard tournaments and exhibitions. The company will also advertise in the print and cable media that is most popular among the target audience. Hosmer will also continue to recruit celebrity endorsers and create strategic alliances. Dozens of professional and amateur athletes already wear the Hosmer brand. Finally, Hosmer is developing a comprehensive website that educates consumers about the Company and its products.

Management Team

The Company has not only assembled a top-notch management team but one with extremely strong marketing backgrounds. The team includes:

• Jane Smith , President, whose experience includes…
• Bob Smith , Vice President of Sales & Marketing, whose experience includes…
• Jen Smith , Sales Manager, whose experience includes…
• Mike Smith , Manager of Endorsements, whose experience includes…

Financial Plan

The average pair of Hosmer sunglasses wholesales for $55.39 and costs Hosmer approximately $15 landed (after shipping, etc.). The result is substantial gross margins of 72.9%. The Company expects sales and profitability over the next five years to be as follows:

Year 1 losses result from the substantial infrastructure (e.g., staffing, general and administrative expenses, etc.) and marketing expenditures needed to promote the Hosmer brand. The long-term increase of sales due to these efforts yield a nearly break-even Year 2, and increasing sales and net income thereafter.

Hosmer currently seeks $5 million, primarily for infrastructure, marketing, inventory, and working capital needs. The Company’s exit strategy is the most likely strategic acquisition or sales of distribution rights in the U.S. and/or other regions.

How PlanBuildr Can Help

If you need help writing an executive summary, our business plan writers are here to help. We’ve worked with 1,000+ entrepreneurs, business owners, and executives to help them craft a successful business plan including an executive summary to grab an investor’s attention from the very beginning.

• Business Planning
• Venture Funding

START A CONVERSATION

Get in touch to start cooking for delivery with CloudKitchens. Want a tour, or just have questions? We're here for that, too.

+1 213-329-4100

[email protected]

Phone +1 213-329-4100

Email [email protected]

© 2024   City Storage Systems LLC.

How to Create an Effective Franchise Business Plan: Key Steps and Best Practices

Table of contents.

CloudKitchens

How many tacos can be delivered from a 1000sqft restaurant? The same amount as a 200sqft ghost kitchen.

Structuring a franchise business plan involves carefully outlining your business model, financial projections, marketing strategies, and operational plans. A well-structured plan helps secure financing, attract investors, and guide your franchise towards growth and profitability. Read our full article for expert tips on building a successful business plan!

Any business needs a business plan, and it is not different for a franchise restaurant . You’ll need to know how the business will operate on a daily basis, how you’re gonna do the best marketing strategies and manage everything, going to the staff to the production everyday.

Creating a well-structured franchise business plan is essential for securing financing, attracting investors, and laying the foundation for a successful franchise . Whether you’re a first-time franchisee or an experienced business owner, a detailed business plan will guide you through the process of launching and managing your franchise.

Let’s see what covers the key elements of a franchise business plan and some tips on how to structure it effectively!

The Importance of a Franchise Business Plan

A franchise business plan serves as a roadmap for your franchise’s success. It outlines your business objectives, strategies, and the operational framework required to meet those goals. Having a comprehensive business plan is crucial for several reasons:

• Securing Financing : Investors and lenders want to see a solid business plan before providing funding. A clear plan with financial projections will help you gain the trust of potential backers.
• Attracting Investors : If you’re seeking partners or investors, a business plan will demonstrate the viability of your franchise and provide a detailed outline of how the investment will be used.
• Operational Guidance : The plan helps you stay on track by providing a clear path for your day-to-day operations and long-term strategies. It acts as a reference document as you grow and expand your franchise.
• Mitigating Risks : A strong business plan includes risk assessments and contingency planning, helping you to foresee and prepare for potential challenges.

Steps of a Franchise Business Plan

Here’s a detailed breakdown of the essential sections to include in your franchise business plan:

1. Executive Summary

The executive summary provides an overview of your entire business plan. It should be concise and highlight the most important points, such as your business objectives, the franchise opportunity, and your overall vision.

Since this is the first section investors and lenders will read, make sure it’s compelling and to the point.

Key components include:

• The franchise opportunity
• Mission statement
• Vision for the franchise
• Brief description of your products or services
• Financial highlights and projected return on investment (ROI)

2. Market Analysis

Market analysis is a critical part of your business plan as it demonstrates your understanding of the industry, target audience, and competition. It should include:

• Industry Overview : Insights into the restaurant or franchise industry, trends, and growth opportunities.
• Target Market : A clear description of your ideal customers, their demographics, and purchasing behaviors.
• Competitive Analysis : Identify your competitors and highlight how your franchise will differentiate itself from them.
• Location Analysis : For franchises, location is key. Include a detailed analysis of your chosen location, its customer base, and its potential for growth.

3. Franchise Model and Structure

This section explains the structure of your franchise, detailing the legal relationship between the franchisor and franchisee. It should cover:

• Ownership and Legal Structure : Explain whether the business is structured as a sole proprietorship, partnership or corporation.
• Franchise Fees : Outline the initial franchise fees, royalty fees, and other costs associated with purchasing the franchise.
• Support and Training : Describe the franchisor’s support, such as marketing assistance, ongoing training, and operational guidance.

4. Products and Services

Provide an overview of the products or services your franchise will offer. This section should include:

• Product Description : A detailed description of what your franchise sells (food, beverages, or other services) and how it meets customer needs.
• Supply Chain and Vendors : Outline how you’ll source your products and what agreements you have with suppliers.
• Competitive Advantage : Explain how your products or services stand out in the market.

5. Operations Plan

An operations plan outlines the day-to-day functions of your franchise. It’s essential for detailing how you’ll run the business efficiently. Include:

• Staffing Plan : A breakdown of staff roles and responsibilities.
• Training Procedures : How you plan to train your employees to ensure consistent quality and service.
• Operational Workflow : Describe the processes for customer service, kitchen operations, delivery services (if applicable), and other operational tasks.
• Technology and Equipment : Mention any technology platforms or equipment critical to your business, such as POS (Point of Sale) systems, delivery tracking, or kitchen management tools.

6. Marketing and Sales Strategy

A successful franchise business requires a solid marketing plan to attract customers and drive sales. Your marketing and sales strategy should cover:

• Brand Positioning : Explain how you will position your franchise in the market and communicate its unique value proposition to customers.
• Marketing Channels : Identify the marketing channels you will use (e.g., social media, local advertising, email marketing) and how they align with your target audience.
• Customer Acquisition and Retention : Outline strategies for gaining new customers and keeping them loyal.
• Sales Projections : Provide realistic sales goals and timelines for achieving them.

7. Financial Projections and Funding Requirements

Investors and lenders will want to see your financial projections, including startup costs, operating expenses, and revenue forecasts. This section should include:

• Initial Investment : A detailed breakdown of the costs required to open your franchise (franchise fees, equipment, inventory, marketing).
• Revenue Projections : Forecast revenue for the first few years of operation, including assumptions about customer traffic and average ticket size.
• Cash Flow and Profitability : A cash flow statement that shows how money will move in and out of the business. Include when you expect to become profitable.
• Break-even Analysis : Show when the business will break even and start turning a profit.
• Funding Requirements : If you’re seeking funding, explain how much you need and how it will be used.

8. Legal Considerations and Franchising Documents

Legal considerations are a critical part of any franchise business plan. This section should include:

• Franchise Agreement : A summary of the franchise agreement between you and the franchisor, including terms, restrictions, and obligations.
• Licensing and Permits : List any necessary permits, licenses, and insurance requirements needed to operate in your chosen location.

9. Risk Analysis and Contingency Planning

Every business faces risks, and a good business plan should identify and address them. Outline potential risks and the strategies you’ll use to mitigate them, such as:

• Economic Factors : How economic downturns or changes in consumer spending may affect your business.
• Market Risks : Risks posed by competitors or shifts in the market.
• Operational Risks : Challenges related to supply chain disruptions, staffing issues, or technology failures.

Building a Strong Franchise Business Plan

To build a strong franchise business plan, you should:

• Be Detailed and Realistic : Provide specific, data-driven information, and avoid overly optimistic assumptions.
• Focus on Financials : Investors want to know that you have a clear understanding of your finances. Make sure your financial projections are detailed and based on realistic expectations.
• Leverage Franchisor Resources : Use the tools and resources provided by the franchisor to ensure consistency with the brand and to streamline your planning process.
• Review and Revise : A business plan isn’t static. Revisit and revise it regularly as your franchise grows and market conditions change.

Creating a comprehensive franchise business plan is critical to your franchise’s success. By carefully outlining each component, from market analysis to financial projections, you can secure the funding you need and create a roadmap for long-term growth.

CloudKitchens can help you expand without the heavy costs and long wait times of traditional brick-and-mortar locations. With our ghost kitchens , you can start selling in a fraction of the time, boosting your sales and seeing ROI much sooner.

Adapt to the fast-changing restaurant industry with our flexible, customizable facilities and open your new location in weeks, not months. Ready to fast-track your franchise’s growth?

Contact us today to learn how CloudKitchens can help you expand for a fraction of the cost and potentially achieve success quicker!

DISCLAIMER: This information is provided for general informational purposes only and the content does not constitute an endorsement. CloudKitchens does not warrant the accuracy or completeness of any information, text, images/graphics, links, or other content contained within the blog content. We recommend that you consult with financial, legal, and business professionals for advice specific to your situation.

More insights & stories

There’s more where that came from. Get in the know and check out our additional insights

How to Successfully Promote Your Restaurant and Build a Loyal Customer Base with 12 Tips!

Promoting your restaurant effectively requires a mix of digital and traditional marketing strategies, from engaging on social media platforms to hosting local events and offering exclusive promotions. Ready to take your restaurant’s marketing to the next level? Read our full article for expert tips and actionable strategies! There are more than 749.000 restaurants in the …