Executive Summary

Definition

The first part of your business plan is your executive summary. An executive summary is a report, proposal, or portfolio, etc in miniature (usually one page or shorter). That is, the executive summary contains enough information for the readers to become acquainted with the full document without reading it. Usually, it contains a statement of the problem, some background information, a description of any alternatives, and the major conclusions. Someone reading an executive summary should get a good idea of main points of the document without becoming bogged down with details. For a business plan, the executive summary should high light three things – overview, objectives, and mission. I’ll summarize each with examples.

Overview

Building Block 2 – The Business Plan and Executive Summary BUILDING BLOCK 2: The Business Plan and Executive Summary You will need to develop several investor communication documents or tools when raising money and interfacing with potential investors: 1. The elevator pitch 2. The executive summary. An executive summary lets readers know what your business plan is all about. Before they read through your reports, data, and projections, prospective investors or partners can learn more about the company and its place in the market. A well-written executive summary can transform a business plan.

Step 1 – Summary

First, a short paragraph highlighting what your business is all about. Referred to your company in the third person. For example, instead of saying “my company is…” you say, “Company Name is…” Check out the example below. (click on image to enlarge)

Step 2 – The Market

The next part of the executive summary should discuss the market. This is a paragraph basically outlining the industry. So if you are starting up a bakery, you want to do some research on your niche or target market and summarize in a few sentences who will comprise your market. This is basic demographic information: city population, age, income, etc. Check out this example below. (click on image to enlarge)

Step 3 – The Business Model

This is a paragraph or two vaguely explaining the logistics of the business. You want to answer questions like how will the business run? or where is the office located? Do not go into too much detail. This basically helps you explain the who, what, where and leverages your credibility. Here is an example. (click on image to enlarge)

Step 4 – The Management Team

This is simple. Here is where you put a short biography of the qualifications of the management team. If it is you and another partner, write a short paragraph on each person involved. You want to make sure to explain what makes you capable, competent, and in control. Again, you want to do this in the third person. Here is an example. (click on image to enlarge)

Executive Summary Of A Business Plan

Objectives

Business Proposal Executive Summary Example

Your objectives should range from three to five, statements that objective why you are starting up your company. These objectives should highlight unmet needs for your target market and not only justify the importance of starting up your company from the owners perspective, but also from the customers perspective. Check out the example below. (click on image to enlarge)

Mission

The final part of your executive summary is a quick paragraph explaining your mission. Really, this is just recaping your objectives – only in complete sentences. When someone reads your mission, they should be able to understand why you are doing what you are doing, for whom, and how you will go about it. Check out the example below. (click on image to enlarge)

Business Plan Executive Summary Template

Alright! You’ve completed the first section of your business plan! You are already on your way to starting up your own business. Check out my other posts for more information. Also, you might want to check out a few of these helpful links that go into more detail on how to perfect your writing, templates, and more.

Example Of Executive Summary Of Prospective Business Plan Template

The executive summary condenses the major points of a larger document, usually a proposal or a business plan. Here, we discuss the considerations and steps to writing one.