Writing an Executive Summary

by Tim Berry

The executive summary section of a business plan is a summary of the highlights of your business plan. Even though the topic appears first in the printed document, most business plan developers leave the writing of the executive summary until the end. This summary is the doorway to the rest of the plan. Get it right or your target readers will not go further than the executive summary.

What should an executive summary include?

For a standard business plan, the first paragraph of the executive summary should generally include:

  • Business name
  • Business location
  • What product or service you sell
  • Purpose of the plan

Another paragraph should highlight important points, such as projected sales and profits, unit sales, profitability and keys to success. Include the news you don’t want anyone to miss. This is a good place to put a highlights chart, a bar chart that shows sales, gross margin, and profits before interest and taxes for the next three years. You should also cite and explain those numbers in the text.

Different plans require different summaries

An internal plan, such as an operations plan, annual plan, or strategic plan, doesn’t have to be as formal with its executive summary. Make the purpose of the plan clear, and make sure the highlights are covered, but you don’t necessarily need to repeat the location, product/service description, or other details.

Never waste words in a summary.

If you’re looking for investment, say so in your executive summary, and specify the investment amount required and the percent of equity ownership offered in return. You should probably also add some highlights of your management team and your competitive edge.

If you’re looking for a loan, say so in the executive summary, and specify the amount required. Leave loan details out of the summary.

How long should an executive summary be?

Experts differ on how long an executive summary should be. Some insist that it takes just a page or two, others recommend a more detailed summary, taking as much as ten pages, covering enough information to substitute for the plan itself. Although 50+ page business plans used to be common, investors and lenders these days expect a concise, focused plan.

The best length for an executive summary is a single page. Emphasize the main points of your plan and keep it brief. You are luring them in to read more of the plan, not explaining every detail.

Don’t confuse an executive summary with the summary memo. The executive summary is the first chapter in a business plan. A summary memo is a separate document, normally only 5-10 pages at most, which is used to substitute for the plan with people who aren’t ready to see the whole plan.

For more information on executive summaries, see our sample executive summaries below or use one of our software products, Business Plan Pro or LivePlan, which help you write an executive summary as well as contain over 500 executive summary examples.

Business Plan Software

Business Plan Pro
If you’re looking for help with the executive summary or other parts of your business plan, Business Plan Pro can save you lots of time and headaches. It contains over 500 sample business plans which can be used to help create your own plan.

LivePlan
LivePlan includes expert guidance and built in help to ensure your executive summary, and entire plan, is error-free. Being that it’s online, LivePlan allows you to collaborate with others and access your plan from anywhere.

Sample Executive Summaries

The links below take you to the executive summary of some of our sample business plans that were created with Business Plan Pro.

Studio 67 Executive Summary
Studio67 is a medium-sized restaurant focusing on organic foods and an intriguing atmosphere, in a prime neighborhood of Portland.


AMT Computers Executive Summary
AMT is an ongoing business computer reseller which also provides service and support.


Javanet Internet Cafe Executive Summary
JavaNet is a start-up business that will provide a unique forum for communication and entertainment through the medium of the Internet.

  • Browse sample business plans

About the author: Founder and President of Palo Alto Software and a renowned planning expert. He is listed in the index of "Fire in the Valley", by Swaine and Freiberger, the history of the personal computer industry. Tim contributes regularly to the bplans blog, the Huffingtonpost.com as well as his own blogs, Planning, Startups, Stories, Up and Running, and others. His full biography is available at timberry.com. More »

How LivePlan makes your business more successful

LivePlan: Online Business Planning Software

If you're writing a business plan, you're in luck. Online business planning software makes it easier than ever before to put together a business plan for your business.

As you'll see in a moment, LivePlan is more than just business plan software, though. It's a knowledgable guide combined with a professional designer coupled with a financial wizard. It'll help you get over the three most common business hurdles with ease.

Let's take a look at those common hurdles, and see how producing a top-notch business plan sets your business up for success.

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  • Flo K.

    Thank you so much! This is my first time writing an executive summary, and I did not have a clue. Very helpful information.

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    —

    John,

    If you’re looking for help with writing your plan, try checking out your local Small Business Development Center or SCORE office. You can also try some of our resources or if you’re further along in the process, try contacting Master Plans at masterplans.com.

    If you’re looking for help with our Business Plan Pro software, please contact us at the office. Contact information for Palo Alto Software

    Thanks!

    ‘Chelle Parmele
    Social Media Marketing Manager
    Palo Alto Software

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    Correct. Executive summary should be precise and act as the mirror to your whole plan.

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    I’m starting a shuttle service besuness catering for corporate clients in the form of staff transportation. I have a executive summary, it is half a page long, is this enouogh?

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    Hi – I’m setting up live entertainment projects around the UK/Ireland in 2010 as a “touring festival”. Looking for a solid investor willing to put around £40,000.00 into the project. 15 years in the industry including training in production for TV, radio and project management, worked with Girlschool, Blaze Bayley, Wolfsbane, Tygers Of Pan Tang, Waysted (ft. Pete Way of UFO), Blitzkrieg, Houe of Lords, Lee Latchford-Evans (ex-Steps), Oliver-Dawson’s “Saxon”, Power Quest, Hydrogyn, Spit Like This, Praying Mantis and many other acts. Experience promoting live events on various scales, artist management, project management, event administration, customer service, acting booking agent, etc; etc. Bags of experience and ideas with a lot of potential.

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  • Connie Laurents

    I forgot to ask…what is SCORE?

  • http://www.businessingeneral.com Chelle Parmele

    Great question, Connie!

    SCORE “Counselors to America’s Small Business” is a nonprofit association dedicated to educating entrepreneurs and helping small business start, grow and succeed nationwide. SCORE is a resource partner with the U.S. Small Business Administration (SBA).

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  • jimmy

    Another paragraph should highlight important points, such as projected sales and profits, unit sales, profitability and keys to success. Include the news you don’t want anyone to miss. This is a good place to put a highlights chart, a bar chart that shows sales, gross margin, and profits before interest and taxes for the next three years. You should also cite and explain those numbers in the text.

  • http://yahoo Linda

    I simply want funds to publish and promote a book. I do not plan to open a company or corporation. Simply want to become a professional promote of my book. How do I find an Executive Summery for a book promotion? Does anyone out there have a sample copy? Help!!!
    lj

  • http://www.businessconsultingabc.com/Writing_An_Effective_Executive_Summary.html Frank Goley

    Hi Tim,

    Great article (as usual). I find that if the business plan was well developed through a good buisness planning process, then the executive summary will most often be solid, provided it is customized to the reader, as you mention in your article. I think a good ES is the result of a great business plan, and you can’t have one with out the other.

    Best,

    Frank

  • http://www.theexecutiveplan.com Adam Hoeksema

    I recently wrote a similar article on my blog titled, “What is the Purpose of an Executive Summary?” I thought this might be a relevant addition:

    Hundreds of thousands of small business owners and entrepreneurs set out each year to write or re-write their business plan. After spending up to hundreds of hours crafting the perfect plan, they simply take the heading from each of the major sections and throw together a summary of the business plan in 20 minutes. The purpose of your executive summary is not merely to “summarize” your business plan. The purpose is far greater. Your executive summary should be used to:

    Make a Memorable First Impression – You only have one chance to make a first impression. You could have the greatest business plan ever created, but with a poor executive summary your readers won’t even make it to the heart of the business plan. Your executive summary is a sign of what is to come for the reader. If you put them to sleep in the first 2 pages they certainly will not even consider digging in to your 40 page business plan.

    Leave the Reader Intrigued; Asking for More – Much like a movie preview your executive summary should whet the readers appetite for the main course. You want to point out some of the exciting attributes of your business plan, but don’t give away all its twists and turns. Disclose just enough information to leave the reader curious. Your goal should be to compel the reader to dig into the meat of your business plan to answer their questions about some of the plan’s details.

    Differentiate – Stand Out – Depending on who your readers are, they may have seen hundreds even thousands of business plans and executive summaries. You need to stand out right away or risk losing the chance to try to stand out later. If you start off your executive summary with a boiler plate template you are asking for the reader to just skim over the plan, and then just toss it aside because they have seen it all before. If you can hook them from the beginning they may actually give your business plan a chance.

    Ultimately the purpose of your executive summary is to compel the reader to continue on, but who really has time to read a 40 page business plan? That is why it is vital to make a memorable first impression, leave the reader intrigued, and to differentiate your plan from the rest of the world.

  • http://www.businessconsultingabc.com/Writing_An_Effective_Executive_Summary.html Frank Goley

    You are right Tim. The executive summary is very important and needs to be a really tight document as this will be the first point of contact with a business plan’s reader. Mess up with the executive summary, and your business plan stands a chance of not being read or considered serious.

  • Anas Afash

    Executive Summary is as important as the Business Plan itself, as it will give the first impression of what is expected and how professional the plan is.

  • Sondra

    Thanks!! You helped me get an A. :D

  • xtabel

    Thanks a lot, this will avoid me a headache! The guidelines are really outstanding, they are so easy to follow and apply…very good job for this website!

  • mussa haji

    this is fantastic way on how to write executive summary, wonderul so keeping on helping us for increasing of our knowledge and skill on business issues.

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