An executive summary provides a snapshot of the business. It is essentially a sales document that highlights the main points of an in-depth business plan and is written for people who want to understand quickly whether or not your business idea is worth their time. The executive summary should contain enough information for the reader to get interested in reading the full plan; thus it should be the most compelling part of the business plan.
Here is how to write an executive summary.
The executive summary should provide answers to the following questions:
Who are you and who is your management team?
What is the business idea?
Where is your market opportunity?
When will your business be profitable?
Why will your target customer do business with you?
How much money do you need and what will you do with it?
Your executive summary should be written last – after the bulk of your business plan has been developed. It should be no more than two pages. If you can’t sell your idea on paper in two pages, well then perhaps you need to reconsider your business idea.
Your executive summary should list the highlights of your business plan in the order that your plan is organized. Avoid using unnecessary technical material or industry jargon. Chances are the person reading the business plan may not know anything about your business and if they are in a position to make a funding decision, it is best to not frustrate them.
Use plain language and do not hesitate to add supporting sentences to further explain. As a test, ask a friend or family member to read your business plan’s executive summary to make sure your business idea is clear, conveys passion, and above all entices the reader to keep reading your business plan.
Do you have any other suggestions for writing a compelling executive summary? Leave a comment.
Melinda F. Emerson, known to many as SmallBizLady is one of America’s leading small business experts. As a seasoned entrepreneur, professional speaker, and small business coach, she develops audio, video and written content to fulfill her mission to end small business failure. As CEO of MFE Consulting LLC, Melinda educates entrepreneurs and Fortune 500 companies on subjects including small business start-up, business development and social media marketing. She has been featured on NBC Nightly News, in Forbes, the Wall Street Journal and Black Enterprise Magazine. Melinda is also the author of the national bestseller Become Your Own Boss in 12 months; A Month-by-Month Guide to a Business That Works. (Adams Media 2010)
What an insightful article! The tips were practical and easy to follow. Well done.
Great synopsis on how to write an executive summary Melinda. Might I add a simple outline that I have used for my clients executive summaries.
The Grab
Big Problem
Unique Solution
Market Potential
Unique Selling Proposition
Business Model
Management Team
Financial Projections
Request
Great post, Melinda.
To me, this is key:
Use plain language and do not hesitate to add supporting sentences to further explain. As a test, ask a friend or family member to read your business plan’s executive summary to make sure your business idea is clear, conveys passion, and above all entices the reader to keep reading your business plan.
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So many people use words to confuse rather than convey, to quote the late George Carlin.
Wonderful description of the need and format for executive summaries.
For your list of executive summary questions, consider:
Why is now the optimal time to address the customers issues or needs?
What early indicators will show whether the financial targets are reachable?
there are so many business ideas these days but it is really hard to take off on a business and make it successful. `”‘.”