How to Write an Effective Executive Summary for your Business Plan

Whether you’ve been in business for years or you’re just starting out on your entrepreneurship journey, you’ve probably heard all about the importance of a strong business plan. This widely used business document gives you the chance to dig into the details of your business, ensuring you catch mistakes or weak points before it’s too late and allowing you to think through important information for your business.

Business plans are indeed useful for entrepreneurs like you. Although they are definitely handy to create and refer back to regularly, they also show why a business plan is essential for entrepreneurs. A bank or other lenders will want to see that you’ve carefully created a strategic plan and shown that your enterprise can be profitable before they provide you with funds. You may even find a business plan competition to enter, giving you an opportunity to win funds.

The executive summary is the opening section of a traditional business plan, but its relative brevity compared to some of the longer and more daunting sections mean that it’s often overlooked. Don’t be fooled by their short length: executive summaries can make or break a business plan, so read on to find out how to make your executive summary as strong as possible.

What is an Executive Summary Business Plan?

An executive summary is the first section of a business plan and is meant to provide an overview of the plan, drawing attention to the most critical areas. It isn’t just a simple rewriting of the plan in short form. Instead, it is a strategic component of the plan that conveys all of the essential information to busy readers in a short, engaging, and easily understandable way.

An executive summary in a business plan is a concise overview that provides an engaging snapshot of your company and its strategy. It introduces the mission of the business, summarizes the business model, and outlines the objectives you want to achieve. It also clarifies the target audience, details the market opportunity, and describes the competitive advantage that positions your company for success.

Beyond that, a strong executive summary explains the financial projections, presents the company’s vision, and highlights the business goals most important to investors and stakeholders. The goal is to demonstrate the feasibility of your plan by focusing attention on key strengths and future potential.

While it appears at the beginning of a business plan, the executive summary is often written last. By distilling the most important insights, it becomes the section that can quickly capture investor interest and inspire confidence in your company’s future.

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How Long Should an Executive Summary be in a Business Plan?

Your executive summary should be one or two pages in length and shouldn’t exceed 10 per cent of your finished business plan. That means that if your plan is 10 pages long, you should keep the summary to one page in length.

What to Include in an Executive Summary of a Business Plan

Your executive summary should include a high-level overview of what the rest of the plan contains, with an emphasis on the aspects that are of interest to those you might be pitching for business loans and other types of funding. Key sections of your business plan executive summary include:

• Brief Overview of the Business

Open with an attention-grabbing statement that introduces the mission of your business and why it matters. Use this space to summarize the business model for quick context, explaining what your company does and how it operates. Keep it short, but make sure it sets the stage with a hook that leaves the reader curious to learn more.

• The Business Opportunity

The business opportunity section tells the reader that you’ve identified a need or opportunity in the market and describes your business is uniquely suited to meeting that need.

• Key Business Objectives

This section should outline the objectives of your business: both short-term and long-term. Define the success metrics you’ll use to measure progress, whether it’s revenue targets, customer acquisition, or market expansion. This demonstrates your ability to stay focused and highlights the business goals of your company in a way that is easy to understand.

• A Description of Your Target Market

Be clear in clarifying the target audience of your offering, showing that you know who your customers are and how to reach them. This helps investors see not only that there’s a demand, but also that you have a plan to capture it.

• Products or Services Offered

Here, review the product or service offering of your company in a straightforward manner. Focus on what makes your offering unique and how it addresses customer needs. You can also include a quick note on how your product or service demonstrates the feasibility of your business idea by solving a real problem in the market.

• Your Business Model

Summarize what it is exactly that your business will be doing. How will you create and deliver your product or service to your target market, and how will you generate revenue?

• Your Marketing Plan

Marketing and sales are key components in any business strategy, and without them even a fantastic product may not generate much traction. Summarize how you plan to market your product and capture sales. Also, consider how building a strong marketing plan supports long-term growth.

• Your Competition

Showing familiarity with your competition demonstrates that you’ve done your research and know what you’re up against. Include an overview of your primary competitors, including your competitive advantage and how you plan to capture market share for your business.

• A Financial Overview

If you have already been in business for some time, this section should include a summary of your financial history and any major wins or successes. You should also outline the funding requirements for your plan if you’re seeking investment or loans. Keep the numbers concise and credible. The detailed breakdown will come later in the full business plan.

• Your Team

You may have a business structure involving lots of decision-makers and employees, or you may be a business of one. In either case, you should include information about all of the key people involved in your business, including their areas of expertise and previous experience if relevant.

• Your Implementation Plan

The implementation plan section explains how you will take your business from idea to launch.

• Your Funding Needs

The funding needs section explains how much funding you are looking for and how exactly it will be spent. It outlines how the spending will result in growth for the business.

• Growth Opportunities

Finally, present the company’s vision for future growth and expansion. Discuss how you plan to scale: whether through new products, entering different markets, or strategic partnerships. By doing so, you propose a plan for long-term success that reassures readers your business isn’t just viable now but also has strong potential ahead.

7 Tips For Writing an Executive Summary That Gets Noticed

While all executive summaries contain more or less the same type of information, they aren’t all created equal. There are a few tips you can implement to make sure yours helps your business plan stand out.

1. Think of Your Executive Summary as a Pitch

Rather than simply summarizing a lengthy document to prepare the reader, imagine that you only have the one or two pages of your executive summary to convince a lender to fund your business. Imagine it’s your entire business pitch, and inject it with the enthusiasm that any good pitch deserves.

2. Write it Last

Just because it’s the first part of your business plan doesn’t mean it should be the first section you write. Instead, write the entire business plan before getting to the summary. This gives you the chance to really work through all of your thoughts as you write the formal plan so that by the time you get the summary you’ve already processed the information contained in the document and it’ll be easier to pick out the key parts you should include.

3. Keep Your Executive Summary Short

You may have crafted a lengthy and detailed business plan, but the executive summary really shouldn’t exceed two pages. Spend plenty of time working on those two pages to make sure they are clear, informative, and engaging.

4. Prioritize Sections Based on Importance and Strengths

While you should touch on all of the sections of a business plan that we went over in this article, each business is unique. Summaries for plans will vary in their structure depending on the business. Your primary audience may be most interested in your unique logistical capabilities, your technical expertise, or some other aspect particular to your business.

5. Avoid Using Cliches

The business world, and particularly the world of venture capital, can be riddled with trendy phrases that don’t necessarily communicate much. For example, it’s become very common for startup companies to describe themselves as “disruptive,” rendering that word meaningless. Proofread your executive summary checking for cliches or buzzwords, and try to replace them.

6. Pay Attention To Your Tone

While you may want to edit your executive summary a little bit depending on who the audience is, you should typically maintain a clear and professional tone. It should be easy to understand while avoiding being too casual.

7. Do Your Research

You’ll have surely done your research while coming up with the content for your business plan, so your executive summary is a chance to let your knowledge shine. Here, you can show that you really know your stuff when it comes to your industry, your market, your target demographic, and your business. It’s also wise to do your research regarding the audience for your executive summary. This is a critical document that can make a difference in terms of your chances of getting funding, so knowing who will be reading it and tailoring it to them can be helpful.

Business Plan Executive Summary Template

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Over the course of ten modules, you’ll answer some easy-to-follow questions about your business, and Blueprint will collect your answers in a downloadable PDF that you can print and share with your network. So don’t wait, get started on turning your dream business into a reality today.

Sample Executive Summary for Different Industries

If you are wondering what does an executive summary look like, the truth is it depends on the type of organization you’re building. An effective executive report is always clear, concise, and tailored to the reader. Below are sample outlines that demonstrate how entrepreneurs and leaders in different industries might approach this section of their business plan.

Startups

For startups, the executive summary provides an overview of the problem being solved, the innovative solution, and the market potential. It should introduce the mission of the company and summarize the business model for early-stage investors.

Sample Startup Executive Summary Template:

• Mission & Vision: Introduce the mission of the company and present the company’s vision for long-term growth.
• Problem & Solution: Outline the objectives of solving a market gap and describe the competitive advantage of your product.
• Market Opportunity: Detail the market opportunity for your innovation and clarify the target audience of early adopters.
• Financials & Funding: Explain the financial projections for the first 3–5 years and outline the funding requirements for scaling.
• Team: Introduce the leadership team of founders and identify the key stakeholders in product development.

Established Businesses

For established businesses, the executive summary highlights the business goals of expansion, new opportunities, or efficiency improvements. It demonstrates the feasibility of growth strategies with historical proof points.

Sample Established Business Executive Summary Template:

• Company Overview: Provides an overview of current operations and reviews the product/service offering of the business.
• Strategic Goals: Proposes a plan for expansion or diversification and explains the strategy for achieving it.
• Market Context: Describes the competitive advantage of the business compared to others in the sector and identifies the risks and challenges of scaling.
• Financials: Summarizes steady revenue streams, explains the financial projections for expansion, and defines the success metrics for growth.
• Stakeholders: Identifies the key stakeholders in operations, from management to investors.

Nonprofits

For nonprofits, the executive summary introduces the mission of the organization and presents the company’s vision for social impact. It focuses less on profit and more on community outcomes and funding transparency.

Sample Nonprofit Executive Summary Template:

• Mission & Purpose: Introduces the mission of the nonprofit and highlights the business goals of social impact.
  
• Programs & Services: Reviews the product/service offering in terms of community programs and clarifies the target audience of beneficiaries.
  
• Impact Measurement: Defines the success metrics for social outcomes and demonstrates the feasibility of proposed initiatives.
  
• Funding & Sustainability: Outlines the funding requirements for grants or donors and explains the strategy for long-term sustainability.
  
• Leadership & Partners: Introduces the leadership team, showcases the key strengths of their experience, and identifies the key stakeholders in delivery.

Common Mistakes to Avoid in an Executive Summary

When drafting your executive summary, it’s easy to fall into a few traps that can undermine its impact. Here are some of the most common mistakes to watch out for:

• Too Much Detail
  An executive summary provides an overview of your business plan; it’s not meant to include every financial table or operational step. Keep it concise and save the in-depth material for the main plan.
• Lack of Focus
  Avoid vague language. A strong summary outlines the objectives of your business clearly, so readers immediately understand your direction and priorities.
• Overly Ambitious Claims
  While it’s important to showcase the key strengths of your business, be cautious about making projections that seem unrealistic. Your summary should demonstrate the feasibility of your goals, backed by sound reasoning.
• Ignoring the Audience
  Tailor your executive summary to your readers. Whether it’s potential investors, lenders, or partners, the summary clarifies the target audience and highlights what matters most to them.
• Poor Formatting
  A cluttered or hard-to-read summary distracts from your message. Use clear headings, bullet points, and straightforward language to present the company’s vision in a professional, digestible way.

How Does an Executive Summary Differ from a Business Plan?

An executive summary provides an overview of a business plan, but it is not the same thing. The executive summary is a concise snapshot that highlights the business goals of your company, outlines the objectives of your plan, and showcases the key strengths of your idea in just a few pages. 

Its purpose is to quickly capture the attention of potential investors, lenders, or stakeholders by summarizing the business model, introducing the mission of your company, and demonstrating the feasibility of your strategy.

A business plan, on the other hand, is much more detailed. It explains the financial projections for your business, reviews the product or service offering, clarifies the target audience, and identifies the risks and challenges in full. While the business plan proposes a plan for day-to-day operations and long-term growth, the executive summary is designed to persuade readers to keep going..

Executive Summary vs. Business Plan: Key Differences

Frequently Asked Questions

Can You Write The Executive Summary Before the Rest of the Business Plan?

Yes, but timing matters. Writing the executive summary first can help you clarify the mission of your business and outline the objectives upfront. It provides an overview of your idea before you dive into details. The drawback, however, is that without the full plan developed, you might miss opportunities to accurately explain the financial projections or describe the competitive advantage.

Do All Business Plans Need an Executive Summary?

Yes, most effective business plans include one. An executive summary introduces the leadership team, outlines the funding requirements, and explains the strategy for growth. It’s often the first section investors, lenders, or stakeholders read, making it a critical part of demonstrating feasibility and clarifying the target audience.

How Long Should an Executive Summary Be in a Business Plan?

Your executive summary should be one or two pages in length and shouldn’t exceed 10 per cent of your finished business plan. That means that if your plan is 10 pages long, you should keep the summary to one page in length.