business plan executive summary importance

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

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

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

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

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

What is an executive summary?

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

The purpose of an executive summary

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

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

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

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

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

How to write an executive summary for a business plan

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

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

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

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

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

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

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

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

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

What to include in the executive summary of your business plan

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

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

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

1. Business opportunity

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

2. Target market

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

3. Business model

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

4. Marketing/Sales strategy

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

‍ 5. Competition

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

6. Financial analysis

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

7. Owners/Staff

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

8. Implementation plan

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

Effective executive summary examples

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

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

Mission statement

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

Company information

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

Financial summary

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

Future goals

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

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

Executive summary/business plan example: Vegan Protein Blitz

Company: Vegan Protein Blitz: Animal-free protein powder ‍

Our Mission

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

The Company and Management

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

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

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

Our Product

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

Our Competitive Advantages

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

Financial Considerations

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

Startup Financing Requirements

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

More executive summary templates

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

• US Small Business Association
• Template.net

Final tips for writing an executive summary

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

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

Brush up on your writing skills

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

Get to the point

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

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

Get feedback

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

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

What is Executive Summary—and Why Should You Care?

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

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

You’ll discover:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Mission Statement

Answer this question for your readers:

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

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

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

Products and Services

Answer these questions for your readers:

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

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

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

Description:

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

Problem & Solution:

Explain the need for the products or services:

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

Value Proposition:

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

Market Opportunity

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

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

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

Target Market:

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

Market Analysis:

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

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

Competitive Advantage

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

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

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

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

Competitors and Market Distribution:

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

Competitive Advantage:

What comparative advantage does your product/service have?

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

Unique Selling Proposition:

What unique selling proposition will help your business succeed?

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

Is competition going to get tougher?

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

Company Description

Company information:.

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

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

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

Company Details:

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

Stage of Development:

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

Track Record:

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

Management:

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

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

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

Operations:

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

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

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

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

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

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

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

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

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

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

Financial Forecast

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

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

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

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

Funding Requirements

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

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

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

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

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

Tips: How Do You Write an Executive Summary?

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

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

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

Why is your plan worthy of backing?

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

Target Audience (Tip #1)

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

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

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

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

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

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

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

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

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

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

Insider Tips: Writing a Winning Executive Summary

Convey your enthusiasm (tip #2).

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

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

Write Executive Summary Last (Tip #3)

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

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

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

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

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

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

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

Summarize Highlights (Tip #4)

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

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

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

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

Make Each Word Count (Tip #5)

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

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

Avoid Jargon (Tip #6)

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

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

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

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

Design: How Do You Design an Executive Summary?

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

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

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

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

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

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

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

Length: How long is an executive summary?

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

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How To Write an Executive Summary for a Business Plan + Example

Written by Dave Lavinsky

Executive Summary of a Business Plan

The Executive Summary is the most important part of your entire business plan . This is because it’s the first section in your plan, and if it doesn’t excite readers, they won’t continue reviewing it. Importantly, there is a way to ensure your executive summary is compelling and includes the key information readers expect. In this article, you’ll learn how to craft the perfect executive summary for your business plan.

Download our Ultimate Business Plan Template here >

Table of Contents:

What is an Executive Summary?

Why do i need an executive summary.

• How Long Should an Executive Summary Be for a Business Plan?

How To Write an Executive Summary for a Business Plan + Template

• Sample Executive Summary

An executive summary of a business plan gives readers a high-level overview of your business plan and highlights its key points.

The executive summary should start with a brief overview of your business concept. Then it should briefly summarize each of the key elements of your business plan: your industry analysis , customer analysis , competitive analysis , marketing plan , operations plan , management team , financial plan and funding needs.

If presented for funding, the executive summary provides the lender or investor a quick snapshot which helps them determine their interest level and if they should continue reading the rest of the business plan.

An effective executive summary is a quick version of your complete business plan. You need to keep it simple and succinct in order to grab the reader’s attention and convince them it’s in their best interest to keep reading.

As mentioned above, your business plan is a detailed document that requires time to read. Capture the attention of your intended audience with a concise format that provides an compelling overview of your plan to save them time and indicate which parts of the business plan may be most important to read in detail. This increases the odds that your business plan will be read and your business idea understood. This is why you need a well-written executive summary.

How Long Should a Business Plan Executive Summary Be?

When structuring your business plan executive summary, the first thing to keep in mind is that it should be short and comprehensive. The length of your executive summary should never exceed 3 pages; the ideal length is one or two pages.

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To write a compelling executive summary, follow the steps below and use this free executive summary template as a guide:

1. State the Problem and/or Business Opportunity

Generally there is a gap or a problem in the market which your business aims to solve. This is your problem statement and it must be included in the summary, as potential investors want to understand if the world truly needs your company’s products and/or services.

2. Briefly Describe Your Business Idea

The next thing a reader would want to know is how you plan to approach the problem and solve it. This is your business model and it should briefly describe how your product or service can help solve the problem.

3. Provide Key Information About Your Company History

The best indicator of future success is past success. Your company’s history helps the reader understand how your business has evolved and grown over the years and what you’ve been able to accomplish. Even startups have generally accomplished milestones like choosing a business name, conceiving products, finding a location, etc.

4. Conduct Market Research About Your Industry

Conducting thorough market research will help you detail the industry in which you are operating, it’s size and if any trends are positively or negatively influencing it. This gives readers a sense of the size of the opportunity you are pursuing.

5. Identify the Target Market or Ideal Customer

Every business has a target customer base or a target market on which they focus. Here you will detail your target customers including their demographic and psychographic profiles.

6. Explain Your Competitive Advantage

When you venture into a market or an industry, there are generally other players with which you compete. Knowing your competition is crucial to your success. Readers of your plan want to know who your competitors are, their strengths and in what areas you will have competitive advantage. Discussing the competitive landscape is a crucial component of a strong executive summary.

7. Establish Relevant Milestones For Your Business To Achieve

In addition to showing relevant milestones your company has achieved, you need to explain your timeline for milestones or essential points in the future. Include dates you hope to launch products, achieve sales milestones, hire key employees, etc.

8. Develop a Financial Plan

If you are requesting funding from investors or banks, they will want to know how you are going to their funds. Include key financial information regarding how and where you plan to allocate the funds should be included in the summary. For existing businesses, you should also provide a history/summary of past financial performance. Finally, for all businesses, you need to provide future financial projections so investors can determine whether they might get an adequate return from investing in you and lenders can ascertain whether or not you will be able to repay your debts.

9. Describe the Qualifications of Your Management Team

In this section, you will introduce the key members of your team. The success or failure of your company depends largely on the parties involved. So, any reader surely wants to know how well equipped your team is. Mention key staff members and the experience and skills they bring, in the executive summary.

Whether you’re a large or small business, your executive summary is the first thing someone reads that forms an opinion of your business. Whether they decide to read your detailed business plan or push it aside depends on how good your executive summary is. We hope this guide helps you craft an effective and impactful executive summary. That way, readers will be more likely to read your full plan, request an in-person meeting, and give you funding to pursue your business plans.

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

Business Plan Executive Summary Example

Shoutmouth.com executive summary, business overview.

Launched late last year, Shoutmouth.com is the most comprehensive music news website on the Internet.

Music is one of the most searched and accessed interests on the Internet. Top music artists like Taylor Swift receive over 5 million searches each month. In addition, over 500 music artists each receive over 25,000 searches a month.

However, music fans are largely unsatisfied when it comes to the news and information they seek on the artists they love. This is because most music websites (e.g., RollingStone.com, MTV.com, Billboard.com, etc.) cover only the top eight to ten music stories each day – the stories with mass appeal. This type of generic coverage does not satisfy the needs of serious music fans. Music fans generally listen to many different artists and genres of music. By publishing over 100 music stories each day, Shoutmouth enables these fans to read news on all their favorite artists.

In addition to publishing comprehensive music news on over 1200 music artists, Shoutmouth is a social network that allows fans to meet and effectively communicate with other fans about music, and allows them to:

• Create personal profiles
• Interact with other members
• Provide comments on news stories and music videos
• Submit news stories and videos
• Recommend new music artists to add to the community
• Receive customized news and email alerts on their favorite artists

Success Factors

Shoutmouth is uniquely qualified to succeed due to the following reasons:

• Entrepreneurial track record : Shoutmouth’s CEO and team have helped launch numerous successful ventures.
• Monetization track record : Over the past two years, Shoutmouth’s founders have run one of the most successful online affiliate marketing programs, having sold products to over 500,000 music customers online.
• Key milestones completed : Shoutmouth’s founders have invested $500,000 to-date to staff the company (we currently have an 11-person full-time team), build the core technology, and launch the site. We have succeeded in gaining initial customer traction with 50,000 unique visitors in March, 100,000 unique visitors in April, and 200,000 unique visitors in May.

Unique Investment Metrics

The Shoutmouth investment opportunity is very exciting due to the metrics of the business.

To begin, over the past five years, over twenty social networks have been acquired. The value in these networks is their relationships with large numbers of customers, which allow acquirers to effectively sell to this target audience.

The sales price of these social networks has ranged from $25 to $137 per member. Shoutmouth has the ability to enroll members at less than $1 each, thus providing an extraordinary return on marketing expenditures. In fact, during a recent test, we were able to sign-up 2,000 members to artist-specific Shoutmouth newsletters at a cost of only 43 cents per member.

While we are building Shoutmouth to last, potential acquirers include many types of companies that seek relationships with music fans such as music media/publishing (e.g., MTV, Rolling Stone), ticketing (e.g., Ticketmaster, LiveNation) and digital music sales firms (e.g., iTunes).

Financial Strategy, Needs and Exit Strategy

While Shoutmouth’s technological, marketing and operational infrastructure has been developed, we currently require $3 million to execute on our marketing and technology plan over the next 24 months until we hit profitability.

Shoutmouth will primarily generate revenues from selling advertising space. As technologies evolve that allow us to seamlessly integrate music sampling and purchasing on our site, sales of downloadable music are also expected to become a significant revenue source. To a lesser extent, we may sell other music-related items such as ringtones, concert tickets, and apparel.

Topline projections over the next three years are as follows:

Download our executive summary example business plan PDF .

By writing an executive summary that highlights your business’s potential and key strengths, you can entice your target audience to delve deeper into your full business plan. Remember, this is your chance to make a strong first impression and convince them your idea is worth their investment. Take the time to refine your summary, ensuring it’s concise and informative, and leaves the reader wanting more. With a well-written executive summary, you’ll be well on your way to securing the funding or support you need to turn your business dream into a reality.

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Mistakes To Avoid When Writing an Executive Summary

Learn how to create a strong executive summary for your business plan

• Writing Your Executive Summary First

Making the Executive Summary Too Long

Not engaging the reader, how to write a good executive summary, frequently asked questions (faqs).

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Writing an executive summary is a key step in creating a business plan. An executive summary is a brief synopsis of your business's main points—but more than that, it's an opportunity to draw in the reader.

If you plan to apply for small business loans or seek funding from investors, it's important to have an executive summary that makes a solid first impression. Crafting a well-written summary begins with knowing which mistakes to avoid.

Key Takeaways

• A business plan executive summary offers an overview of the plan itself and what the business is all about.
• An effective executive summary conveys the most important aspects of the plan in short form while pushing the reader to want to learn more.
• Rambling and including unrealistic goals or projections are some of the most common mistakes business owners make when writing an executive summary.
• It may be worth investing in a professionally written business plan if you're struggling to create a memorable executive summary or flesh out the other parts of the plan.

Writing Your Executive Summary Before Other Parts of the Business Plan

An executive summary is meant to sum up the main takeaways of the business plan. Focusing on writing an executive summary before you've outlined the rest of your business plan can be a mistake if you're not able to summarize the business accurately.

A traditional business plan looks something like this:

• Executive summary
• Company description
• Market analysis
• Organization and management
• Service and product line
• Marketing and sales
• Funding request
• Financial projections

Although the executive summary is the first thing the reader sees, it should be the last thing you write after you've covered all the other sections in detail. This can help ensure you're including the most important elements in the executive summary.

A business plan for a startup may look very different and emphasize things such as key partnerships, customer relationships, revenue streams, and the company's overall value proposition.

An executive summary should encapsulate all the major points of your business plan in a few paragraphs. A good rule of thumb when writing an executive summary for a business plan is to make it no more than three to five pages. Anything longer than that and your reader may get confused or bored.

Allocating one paragraph for each section included in your business plan can help you keep the length under control. Remember, the executive summary is sort of like the highlight reel that you're using to pique the reader's interest. You want to hit the high points first and dig into the meatier details later.

If three to five pages doesn’t work, aim to have your executive summary length be equivalent to 5% to 10% of the total business plan length.

A good executive summary should capture your reader's attention and encourage them to continue reading the rest of your business plan. Writing an executive summary that's dry or lacks a sense of personality can be off-putting to readers.

While your business plan executive summary should include some key facts about your business, it doesn't simply have to be a lot of figures or bland details. Instead, think of it as telling your business's story in a nutshell. Be selective with your wording and leave out anything unnecessary to the key points you're trying to make.

Consider what kind of return on investment (ROI) you might be able to get by outsourcing the executive summary or business plan to a professional writer versus writing it yourself.

Writing an executive summary for a business plan shouldn't be stressful if you know what mistakes to avoid and what to include. Here are some simple tips for writing an effective executive summary:

• Write it last : It's worth repeating that the executive summary should be the last thing you write after you've completed the rest of the business plan. Writing the summary last ensures that you have all the information you need to write it comprehensively.
• Tell your story : Your executive summary is a chance to hook readers, and sharing some of your business story can be a great way to do just that. Just remember to keep the summary on point and avoid unnecessary tangents.
• Show your passion : It's OK to show your passion for or belief in your business in the executive summary. In fact, that can be a good thing if it conveys to investors or lenders that you're committed to making the business a success.
• Tailor it to your reader : The way you approach a small business lender may be very different from how you approach an investor if you need funding to launch or grow your company. So your executive summary should be written in a way designed to appeal to each type of reader while offering the most pertinent information they want to see. Also, consider the industry you're in. If you run a retail store, for example, your executive summary and business plan may look different from one for a construction business.
• Proofread, proofread, proofread : Spelling errors, grammatical errors, and typos can tank even the most well-written executive summary. Before finalizing your business plan, it's wise to review it thoroughly to look for any mistakes that need to be corrected. You can also ask someone else to copy edit it for you.

What is an executive summary?

An executive summary is the introductory section of a business plan that showcases key information about the business. An executive summary offers an overview of your business at a glance and should be designed to entice the reader to learn more.

How long should an executive summary be?

Generally speaking, an executive summary should be no more than five pages or 5% to 10% of the total length of the business plan. An executive summary that's too long may cause readers to lose interest, while one that's too short may not be compelling enough to convince them to keep reading.

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Minnesota Department of Employment and Economic Development. " The Executive Summary. "

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How to Write an Executive Summary in 6 Steps

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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.

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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.

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