An executive summary is a short way to present a business plan to investors. It’s like a cover letter for company plan. It helps the reader understand what the plan is about.
The executive summary should be easy to read and clearly explain the purpose of the plan. A good executive summary will help grab the attention of potential clients and investors. There are many elements that go into making an effective executive summary.
Using an executive summary template can help you include all the important information.
The Purpose of Executive Summary
One of the goal of an executive summary is to catch the reader’s attention. It helps the reader to highlight company’s important information.
It gives the reader an idea of what company’s plan is about. Executive summary gives a general overview of the company and its goals. It is like an elevator pitch for your business.
Executive summary gives the reader just enough information to get interested and want to read more.
When you present a business plan to someone, like a lender or investor, they don’t want to spend a lot of time reading a big document. That is why an executive summary is so important.
It gives the reader a quick look at the key points of the plan. The reader can directly read the arguments, funding, and potential returns. With this information, they can decide if they want to take a closer look at the full plan or not.
What should be included in an executive summary?
Introduction:
Begin your executive summary with a statement that introduces the purpose of the business plan. Your objective is to engage the reader by clearly communicating the value of the business and the intended outcomes.
Company Description:
Provide a brief overview of your company, including the following information:
- Business name and location
- Contact information
- Purpose of the business
- Leaders, founders, and current investors
- Team responsible for the project
Products and services offered
Explanation of the problem you aim to solve, including research findings and how you plan to achieve the project goals.
Market Analysis:
This section should provide answers to the following questions:
- Is there a market opportunity for the problem?
- How will you grow your customer base and increase market share?
- What is your five-year growth plan for the product/service?
- What is the most significant insight you have learned about your target audience?
Competitive Analysis:
The competitive analysis should provide answers to the following questions:
- Who are your competitors?
- What are the current and future market opportunities?
- What is the unique value proposition of the product or service?
- Have you had experience with competitors?
- What are the risks specific to this niche or product line?
- What roadblocks do you anticipate and how will you address them?
Funding Request and Use:
In this section, make a case for investment by answering the following questions:
- How much funding do you need for the business?
- What is the profitability of the business?
- How will investors benefit from investing in your business?
Financial Projections:
Provide financial data that supports your research and includes the following information:
- Budget baseline for your business plan
- Projected revenue for the first three years
- Financial management plan
- Current and future business finances
Executive Summary Template
Executive Summary Template
I. Introduction
- Briefly introduce the purpose of the document and grab the reader’s attention with a clear and concise overview of the business.
II. Company Description
- Provide the business name, location, contact information, and purpose.
- Outline the leadership, founders, and current investors of the company.
- Describe the products and services offered, as well as the problem you aim to solve.
III. Market Analysis
- Evaluate the market opportunity for the problem you’re trying to solve.
- Discuss your plans to grow your customer base and expand your market share.
- Present the five-year growth plan for the product/service.
- Highlight the most interesting information you’ve learned about your target audience.
IV. Competitive Analysis
- Identify your competitors.
- Discuss present and future opportunities in the market.
- Outline the unique value proposition of your product or service.
- Share any experience with competitors and discuss potential risks and roadblocks.
V. Funding Request and Use
- Explain how much funding you need to start your business.
- Detail the profitability of your business and how investors will benefit.
VI. Financial Projections
- Present the budget baseline for your business plan.
- Include projected revenue for the first three years.
- Discuss your plans for managing finances and outline your current and future business finances.
VII. Conclusion
- Summarize the key points of the executive summary and reiterate the purpose and value of the business.
- Provide the next steps or actions you want the reader to take.
Simple Executive Summary
Executive Summary
Product Description/Objective
[This is your opportunity to tell your audience all about your company.]
Target Audience
[Let the reader know who your product is intended for in this section.]
Competition
[List your competitors here, and include reasons why your company is positioned well to handle any competition.]
Risk/Opportunity
[Here you can list the challenges and opportunities your company might encounter:
- List a challenge or opportunity here.
- List a challenge or opportunity here.]
Conclusions
[List your recommendations and suggestions based on the results presented in your report.]
Executive Summary Example
