An executive summary and market analysis, as well as a financial strategy and estimates, make up a business plan. The first section of your business plan will be the executive summary. While the executive summary is the first page of your business plan, most individuals, including me, suggest you write it last. This is due to the fact that it condenses your complete business plan onto a single page. If you’ve been putting off finishing your business plan because you don’t know how to create an executive summary, we are here to help. In this article, we’ll explain what an executive summary is and how to write one, so your business plan can get off to a solid start.
Sit back and enjoy the ride!
What Is an Executive Summary of a Business Plan?
Your business plan’s executive summary is a brief, informative, and easy-to-read opening statement. The executive summary is extremely significant, even though it is only one to two pages long. An executive summary explains what your business does, why an investor would be ready to invest in it, why their money will be wisely spent, and why you do what you do. An executive summary should be useful while also capturing the attention of a busy reader.
This is the section of your plan that an investor will read if they only read one component of it. They’ll need to know who you are, what you do, where you need to go, and how much it’ll cost to go there from here. You’ll start with a simple one so you can finish the rest of your business plan, but you’ll want to go over it, again and again, to make sure it’s focused and clear. Remember to include your value proposition, which encompasses what your company is all about and what sets it apart from competitors.
What to Include in an Executive Summary of a Business Plan
The information you need to present differs. Depending on whether your business is a startup or an established company. Based on the aim of your business plan, your executive summary should include crucial details that are relevant to your reader. Your choice of language is also influenced by whether your audience is made up of generalists or industry professionals
You need to include the following to make your executive summary meaningful and attractive to the reader; they are:
#1. Hook
A hook is anything that attracts the reader’s attention. While an executive summary is a formal business document, your hook should help you stand out from the crowd—without wasting time. Your hook could be something unique about your firm, an interesting statistic, or simply a well-written summary of what you do. It’s critical to write your hook with your reader’s personality in mind. Give them something that will help your company stand out in a sea of competing business plans.
#2. Company Description
It’s time to start talking about your company in general. After all, if an investor is going to give you money, they need to know what your company does or what product you offer, as well as who is running it and other statistics such as the number of employees, business locations, etc.
#3. A Description of Your Target Market
Describe the type of customer you’ll be aiming for. Sometimes the product name itself defines the market. If not, a quick explanation of your target market, your major audience, or the people you believe would be willing to pay for your solution if it worked.
#4. A Description of Your Product or Service and the Problem Your Business Solves
You’ve identified a market need; now it’s time to demonstrate how your company will meet it. This part of your executive summary is dedicated to showcasing your company’s product or service. This is also an excellent moment to figure out what makes your company unique and gives you a competitive edge. After all, your company isn’t likely to be the first of its kind. Explain what sets you apart from your competitors and why clients should choose your product or service over your competitor’s own. Your business doesn’t have to solve bigger societal issues, but it should meet a customer need or a market opportunity.
#5. Financial Information and Projections
You want to provide the reader with an outline of your current company’s financials in this portion of your executive summary. Again, you’ll go into greater detail about this section later in your business plan, so simply hit the big points now. Include your present sales and profits (if any), as well as the funding you’d like to get and how it will affect your finances in the next few years. This is also where you can describe any previous money you’ve received. If you pay back your loan on schedule, this is a very strong selling point for potential lenders.
#6. Funding
While it’s critical to request the funds you require, you must also specify how you intend to use the funds. If you’re asking for money, you want the other person to know you’ve thought about how you’ll put it to good use. The amount of money you’re looking for should be highlighted in your executive summary. Investors will want to know this right away, rather than having to search through a business plan to uncover it.
Tips for Writing the Business Plan’s Executive Summary of a Business Plan
There are things that your business plan executive summary needs to be attractive and catchy about. The following are tips you need to follow while writing your executive summary:
#1. Focus On Providing a Summary
Consider an executive summary to be similar to an elevator pitch but with more restrictions. A strong summary sells the rest of the business plan, but it can’t just be a hard sell, it needs to explain the whole thing. Focus on providing a summary because the details will be included in the business plan, and the readers of your plan, whether bank managers or investors, do not want to waste their time.
#2. Keep Your Executive Summary Short
Refrain from stuffing your executive summary with details from your business plan. Writing a short executive summary is a difficult endeavor that will necessitate numerous revisions before reaching the final product. While this is the first piece of your executive summary, you should write it last, after you’ve finished putting everything else together. The purpose of the executive summary is to offer data and persuade your reader to study the whole of the business plan, not to tell them all. The more short and clear your executive summary is, the more likely it will be read.
#3. Keep It Simple
Don’t overcomplicate or explain anything in your summary. The majority of executive summaries are brief paragraphs with bullets and subheadings. Illustrations such as a product picture or a bar chart with financial highlights are frequently nice additions.
#4. Speak to Your Audience
Consider who will be reading your executive summary while composing it; that’s who you’re speaking to. You’ll have a better chance of capturing the attention of the individual who will read your executive summary if you can tailor it to their personality and interests. Know who you’re talking to and speak to them in the appropriate tone. It could be professional and deferential, expert and clipped, informal and personable, or any other tone that is appropriate. The focus of your executive summary should be on the unique opportunity that your company offers investors. If you’re writing a business plan to acquire a small business loan, emphasize what traditional lenders like to see, such as management’s industry knowledge and the fact that you have both collateral and risk-mitigation methods in place.
#5. Prioritize Sections Based on Importance and Strengths
Don’t put the lead in the ground. Make sure the most important information is at the top of your executive summary. There is no specific sequence in which the various main items featured appear; on the contrary, the order should be used to demonstrate importance.
Why Write an Executive Summary?
Are you putting together a business plan to present to potential investors or bankers? Then you’ll require an executive summary. It is important that you know how to write an executive summary of a business plan. Regardless of the content, many individuals will only read the summary. Others will determine whether or not to read the whole plan after reading the overview. When writing plans for outsiders, the executive summary is important.
Someone who is pressed for time wants to learn about your company quickly, which means they don’t want to go through an 80-page business plan. This is when your executive summary enters the picture. An executive summary is a great way to pique someone’s curiosity, tell them about your company, and make a strong case for why they should invest in it.
Your executive summary is your opportunity to sell your company to potential investors and demonstrate that it is not just worth their money, but also their time.
How to Write an Executive Summary of a Business Plan
The executive summary appears first in the business plan. This is the most significant section, which summarises in two pages what it takes ten or fifteen pages to write in-depth. The executive summary, like the business plan, should be clearly written and forcefully appealing, but it should also strike a balance between sales rhetoric and realism in order to be convincing. You must make sure it does not exceed 1,000 words.
It is a must for you to know how to write an executive summary of a business plan because it is the most crucial part of your plan. It includes a brief summary of the full plan as well as a history of your business. This section informs the reader about your company’s current state and future plans. It’s the first thing your readers see, so it’ll either capture their attention and inspire them to continue reading, or it’ll make them want to put it down and neglect it. This part is crucial because it explains to the reader why you believe your big idea will be productive. That’s why we advise you to seek help from a professional like Business Yield Consult to avoid making mistakes.
Here’s what your business plan’s executive summary should include:
#1. Business Concept
It summarises the main points of your company. Two words, two sentences, a paragraph, or even a single image could suffice. It should be as concise and to the point as possible, leaving the reader with a clear image of what your company is about.
#2. Date Business Began
You need to put the date your business began to make your investor see the history and growth of your company
#3. Business Goals and Vision
It states what your company plans to do.
#4. Product Description and Differentiation
This part summarises what you sell, and what makes it unique.
#5. Target market
This part states those you sell your product to or those you render your service to.
#6. Marketing Strategy
It sheds light on how you intend to reach out to your customers.
#7. Current Financial State
It shows your investors how much money you make currently.
#8. Projected financial state
Your investor gets to see the kind of profit you’ll be able to generate in the business before investing in the business.
#9. Funding
It reveals the amount you intend to ask for from your investor.
#10. The team
The number of employees and people involved in the business.
Executive Summary of a Business Plan for a Restaurant
An executive summary of a business plan for a restaurant is a quick description of your restaurant business, including why it is something the community wants or needs and why it will succeed. Many different sorts of restaurants cater to different populations, so it’s crucial to know which one you want to open. Are you planning to launch a quick-service restaurant that specializes in takeout sandwiches and salads that are ready to eat? Or will you be the first snack restaurant in a city in desperate need of more variety? An executive summary is very important while writing the business plan for your restaurant.
The following information should be included in the executive summary of your restaurant business plan:
- The concept of your restaurant.
- The mission statement of the restaurant.
- A realistic schedule for your restaurant’s opening.
- The location where you want to open your restaurant and how much space you’ll need in the building.
- An overview of the market.
- What distinguishes your new restaurant from others.
- Experienced management and excellent chefs are among the restaurant’s primary qualities.
- Cost estimates, business objectives, and financial projections for opening a restaurant.
We have an executive summary of a business plan for a restaurant just for YOU to make it easier while writing your restaurant business plan.
Final Thoughts
The executive summary provides a quick overview of everything in your business plan. Not only is a great executive summary required for beginning a firm but it is also required for obtaining financing for your new venture. It might seem confusing but do not be scared of it because we are here to help you out with it.
FAQs
How long should an executive summary be?
The length of a decent executive summary should be between 5 and 10% of the total length of the report (for a report that is 20 pages or less, aim for a one-page executive summary).
Does an executive summary need a conclusion?
Although it starts a document, the executive summary ends it, such that it may be read independently of the rest of the content and still be useful. Recap your findings, offer advice, and suggest potential solutions in the conclusion.
Is executive summary the same as introduction?
The full report, which may be over 20 pages long, is essentially condensed into an executive summary. While an introduction is just a brief summary of what to expect in the larger work and its purpose,
