The Art of Writing a Powerful Executive Summary

The executive summary of a report or proposal helps you capture your audience’s attention quickly. This clear, compelling summary highlights the most important information to help decision-makers see the value of your ideas. Make the most of this snapshot by learning to write a powerful executive summary for your business plan or proposal.

What is an executive summary? 

An executive summary provides a succinct snapshot of an entire proposal or document. This could include a presentation, a case study, a white paper, and other documents. Think of it like the opening act for a business plan—it’s always located at the beginning. This concise overview of the business's key points presents the first opportunity to interest investors, funders, or other interested parties. This article focuses primarily on the executive summary for business plans. 

Why write an executive summary? 

The executive summary lets you provide a clear and compelling summary of the business opportunity, highlighting your unique value proposition and potential for success. 

An engaging, persuasive, and concise executive summary allows your audience to quickly understand the key aspects of your proposal without having to read all the details immediately. An executive summary should function as a standalone document, although the aim is to intrigue the reader enough that they want to read your business plan, too.

Who uses an executive summary?

Anyone who has developed a longer report, such as a business plan, can use an executive summary to introduce the content. An executive summary has many uses for various individuals, although the primary goal is to provide a concise view of any written document. Ideally, your end goal with this summary is to engage executives, department heads, or managers. 

What should an executive summary include? 

The executive summary introduces you and your business idea to your audience, so it should include pertinent details of your business plan. This part of the business plan convinces readers to continue into the document as a whole. Keep it concise so busy executives or investors can get an excellent overview of your business plan in a short amount of time. At most, an effective business plan executive summary reaches two pages. 

Write the executive summary after crafting the entire business plan so you're sure to include all of the most important points. Summarize the key points from all your hard work drafting the entire plan and include critical details such as the following elements: 

• Business description: Provide a brief overview of the business idea, its nature, and its industry or market.

• Problem statement: Illuminate the challenge or need your business intends to address, showcasing its immediate and long-term significance and impact. 

• Solution: Present your business's innovative solution or product that addresses the identified problem or need.

• Target market: Describe your target audience, including its size, characteristics, and demographics. Explain the opportunity this particular market represents.

• Competitive advantage: Articulate the unique selling points or competitive advantages of your business, distinguishing it from existing solutions or competitors.

• Business model: Provide a high-level overview of your business’s revenue generation strategies, pricing strategy, distribution channels, and any notable collaborations or partnerships.

• Financial summary: Include a snapshot of your projections, including the forecasted revenue, anticipated expenses, and estimated profits. Doing so offers investors and stakeholders a sense of the business’s viability from a financial standpoint. 

• Expertise: Highlight key team members, emphasizing their relevant experience, skills, and expertise that contribute to the business’s success.

• Funding requirements: Clearly indicate the amount required, including a concise explanation of how you will use the funds and the potential return on investment.

Step by step: How to write an executive summary

Busy business plan readers can see plenty of pitches and requests daily, so you want to stand out. Before writing an executive summary, familiarize yourself with the following best practices.

Step 1: Know your audience.

Before writing anything, it helps to identify your audience. This information can help you craft the questions you anticipate and the way you answer those questions in your executive summary. With a particular reader in mind, you can shape your story to grab their attention and give them the information they need most.

Step 2: Be concise and clear.

Keep your executive summary short. Write the business plan in its entirety first, then come back to write the executive summary. After drafting the entire document, you’ll have a clearer idea of your essential points. Focus on the most important information. The reader can always read the entire document to learn more. Trust that they will want to if you make a real impression with a powerful executive summary.

Step 3: Share well-researched data.

Highlight precise, factual data about your business, its market, your team, and your business finances. Telling a story can engage readers, but they still want to see facts. Well-researched data provides credibility. Sharing relevant data demonstrates your knowledge and effort. Plus, it means more than cliches, jargon, or buzzwords that read like an empty sales pitch. 

Step 4: Outline your product or service and why it’s needed.

The reader wants to know what your business does and the features that make it distinct. While you need to explain the product or service in detail, also outline the benefits. Include the problem the product or service addresses and the importance of offering this solution.

Step 5: End strong.

Conclude your executive summary with a simple statement of the problem and solution your business addresses. If you are asking for funding, or some other decision, clearly state the request. End on a statement emphasizing the impact your business could have and the importance of this work, now and in the future.

Step 6: Review your summary.

Before distributing your executive summary, take the time to review it again with fresh eyes. Take a break or wait until the next day before returning to your document. Make sure a reader outside of your business has the context needed. Look to cut any extra words, jargon, or redundancies. Always use spell check, too. 

You might want to share the executive summary with a trusted person outside of your business to review it as well. They can help gauge whether the summary persuades, shares your unique advantage, and stands alone as a document.

Executive summary example

Executive summaries can be found in legal briefs, market research reports, environmental studies, project proposals, surveys, and business plans.Since this article focuses on executive summaries for business plans, the following example is for a hypothetical car detailing company.

AutoGleam provides exceptional detailing services to car owners, ensuring their vehicles receive the highest level of care and attention. Our highly skilled team of professionals and our commitment to customer satisfaction sets us apart in the market. This executive summary provides a snapshot of our business plan, highlighting the key aspects of our car detailing services and outlining our strategies for success.

Opportunity

The car detailing industry is experiencing steady growth, driven by the increasing demand for professional car care services. In fact, Market Research Future valued the global car detailing market at $XX billion in 2023. It is projected to reach $XX billion by 2026, growing at a CAGR of XX% during the forecast period. 

Market potential

As car owners strive to maintain the appearance and value of their vehicles, they seek reliable and convenient solutions. Our research indicates that the target market, consisting of car enthusiasts, luxury vehicle owners, and busy professionals, presents a significant opportunity for a premium car detailing service.

Our services

AutoGleam offers a comprehensive range of car detailing services tailored to meet the diverse needs of our customers. Our services include thorough interior and exterior cleaning, paint correction and protection, upholstery, and engine bay cleaning. We utilize high-quality products, advanced equipment, and proven techniques to deliver exceptional results that exceed customer expectations.

Competitive advantage

Our competitive advantage lies in our unwavering commitment to quality and customer satisfaction. We understand that each vehicle is unique and requires individualized attention. Our highly skilled technicians have extensive experience in the industry and possess a deep understanding of various car models and finishes. Additionally, we prioritize environmental sustainability by using eco-friendly products and minimizing water waste.

Financials

Our operations center around a strategically located facility with state-of-the-art equipment and resources. We will invest in staff training to ensure consistent service quality and efficiency. Financially, we project steady revenue growth, leveraging our competitive pricing strategy and customer retention initiatives. Our financial projections indicate profitability within the first year, with a positive cash flow and a strong return on investment for stakeholders.

What’s next

To launch and expand our car detailing operations, we are seeking funding of [amount]. These funds will go towards facility setup, equipment acquisition, marketing campaigns, initial inventory, and working capital. In return, investors can expect significant returns as we tap into the growing market demand and establish ourselves as a leading car detailing company in the region.

AutoGleam can revolutionize the car detailing industry with our unwavering commitment to quality, customer satisfaction, and environmental responsibility. We are confident that our comprehensive range of services, skilled team, and strategic marketing initiatives will position us for rapid growth and success. We invite you to join us on this exciting journey as we redefine car care standards and exceed customer expectations.

Getting started with Coursera

An executive summary is an essential component of a business plan. It gives potential investors and executives insight into your business and helps you connect with key leaders in your industry. Crafting a convincing and well-researched executive summary is also important. 

Learn more about creating a new business venture in the How to Start Your Own Business Specialization from Michigan State University. You can also learn more with the Entrepreneurship: Growing Your Business Specialization available through the University of Virginia. You can find these dynamic programs and more on Coursera.