How to Write an Executive Summary: 8 Executive Summary Tips

An executive summary is a short, engaging opening statement to your business plan. The goal of an executive summary is to entice investors to read the rest of your business plan and potentially meet with you. An effective executive summary is typically one-to-two pages long, summarizing the goals of your business in a way that captures your reader's interest.

This brief abstract provides a brief roadmap of the fundamental elements of your business plan (like the company overview, its products and services, financials, market analysis, and your mission) which are covered in greater detail later on in your complete business plan.

Preparing an engaging executive summary can make or break your business plan. Here are some of the reasons why you should include an executive summary at the beginning of your business plan.

1. 1. Enticing potential investors: Most investors don't have time to read the entire document of a business plan from someone they don’t know. Potential investors will want all of the pertinent information presented up front in a succinct way, so they can figure out if the plan is worth their time. This is what an executive summary does. If your executive summary is clear, engaging, and unique enough, it can entice your potential investors to read on.
2. 2. Lending humanity and voice to a formal document: Business plans are formal documents that can get very granular and dense. An executive summary gives you a chance to show who you are and share your business's vision, which can help potential investors connect with your company.
3. 3. Clarifying your message: Writing an executive summary gives you a chance to clearly describe your business plan and clarify your message. It can also help you figure out how to improve and streamline your overall business plan. If you're having trouble summarizing your business plan clearly in one-to-two pages, it's possible you have some kinks to work out in your business plan.

A strong executive summary can function as an abstract to your full business plan, giving potential investors a clear picture of your company and a strong incentive to invest. Here are six elements to include in your executive summary.

1. 1. Opening statement: The first few sentences of your executive summary are your first chance to grab your potential investors’ attention. Think of your first paragraph as your elevator pitch. You can add flair and creativity to this section, which should position your business as an exciting venture that people will want to participate in.
2. 2. Company description: The company description section of your executive summary should include all the main points about your business model, such as what products or services your company provides, when it was founded, where you are located, and the founders and management team.
3. 3. Market analysis: A brief market analysis proves that you’ve done the research about how to successfully position your business in its target market. this market analysis should include your market competitors, the demand for your product or service in your service area, and how your business will stand out in a crowded market.
4. 4. Products and services: After your company description, you can go into slightly more detail about what your business provides. Include current sales, the growth you've seen since you founded your company, and your marketing plan. Include any specific features of your business that set you apart from your competitors.
5. 5. Financial information: In the financial information section of your executive summary, include the highlights of your business's financial situation, including current sales, profits, and investments. You should also include your financial projections for the coming years. Make sure to keep this section brief, because you’ll be going into greater detail later in your business plan.
6. 6. Future planning: Tie your executive summary up with a few words on your future plans for the business. Address why now is the perfect time to invest in the company, and how your service or product will impact future customers and markets. Discuss how capital investments can be used to make those goals and plans happen. As the final section of your executive summary, you should use active language to inspire your potential investor.

For business owners who are looking to write a good executive summary for their own business plan, here are eight tips to follow.

1. 1. Read other business plans. There are a wealth of executive summary templates available online. Research some executive summary examples online before you begin writing your own, which may help you visualize how to craft one.
2. 2. Be concise. You will need to keep your executive summary concise and brief in order to get all the important information into a page or two. Writing a longer document than that runs the risk of losing the reader’s attention. Your target audience will be more likely to engage with a brief overview of your business that is memorable rather than something that gets too granular or detailed.
3. 3. Engage your audience. Remember to keep investors in mind when you're writing your summary, and ensure that all your language is working to entice specific investors into your business's vision. You can even rewrite your executive summary to speak specifically to the passion points of certain investors.
4. 4. Make your summary easy to skim. Busy investors are more likely to quickly skim your executive summary than to read it from beginning to end. Use bullet points and subheadings to help your most valuable information stand out. Bullet points are an effective and easy-to-read way to communicate the key points about your business, while subheadings help to organize your information and direct your reader's attention quickly. They can also break up a document that would otherwise appear dense with large blocks of text.
5. 5. Highlight your winning points. You want your executive summary to show your business in the most flattering light. Focus on your business's strengths and milestones, whether it’s strong financial growth or cornering an under-serviced market. Highlight these victories in your document so your reader's eyes go right to those winning points.
6. 6. Use engaging, active language. Your word choice and writing style in an executive summary should strike a balance between using inspirational, active language, sounding humble yet confident, and avoiding clichés. Use clear, concise language that quickly and impactfully conveys the important points about your business. Instead of using overly formal or unclear business jargon, use active language that inspires your readers and makes them want to be a part of what you’re doing.
7. 7. Avoid direct appeals to investment. Even though you’re speaking to potential investors with your executive summary, you should avoid too much language that directly asks for their investment. You want to get potential investors excited to participate in your new business idea; not to make them feel like they’re being shaken down for capital.
   
8. 8. Proofread and repeat. Once you think you've finished your document, read it over again to hear how it sounds. Then ask someone else to read it for you and see whether it's truly capturing your business's vision.

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