What Is An Executive Summary & How To Write An Executive Summary Of A Business Plan
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By pure accident, the concept of an executive summary is a convoluted one. The problem lies in the terminology itself. The term executive summary can actually mean two things. An executive summary can be either a single section in a long business plan which serves as the opening section. An executive summary is also sometimes a term that is used to refer to a one or two page business plan that is compact. In this article we will go over both kinds of an executive summary to make both clear. If you would like to learn how to write a full business plan, check out this article on how to write a business plan.
Executive Summary Of A Longer Business Plan
In long-form business plans that take five or more pages, the understanding is that the reader will be taking thirty or more minutes to read the business plan. That gives the writer a chance to add an introductory section to the business plan. That introductory section is called the executive summary. In longer business plans, this section is meant to introduce the reader to what he or she is about to read. You shouldn’t add any detailed information about the business in this section. It is meant to serve as a nice entry into the business plan and explain to the reader what he or she is about to read.
Example Of An Executive Summary Of A Longer Business Plan
I will give an example of an executive summary for my business. Notice that I present the company’s mission statement as well as give a brief overview of the important initiatives in the company.
The GlowingStart suite of products is intended to aid entrepreneurs to help them plan, start and grow their business. The company has identified four general pain points faced by 90% of entrepreneurs and creates educational products as well as tools to aid entrepreneurs in successfully starting and growing their businesses. The major pain points GlowingStart helps with are business ideas, business planning, marketing a business, and raising money. Some of the company’s products are mobile apps for business, books, online courses and coaching.
Executive Summary As A Compact Business Plan
For many kinds of businesses and especially new businesses, you can express the important parts of the business in a company one to two page document, which is also sometimes called the executive summary. This kind of a document is intended for a reader who may not have much time to spend on reading this document. A savvy reader of this document will look for key points and understand the bigger picture. And that is what this document must express.
One To Two Page Executive Summary Template
- Introduction section – a very brief version of the executive summary in a longer business plan.
- Brief product overview – explain what your product is, how it helps people, and how it is interesting and unique.
- Explain the stage of the business or traction – tell the reader about how much traction this business has. Is the business in an idea stage? Or is it live and has customers? Does the business have revenue or profit?
- Discuss the target market – who is the target consumer of the product or service for this business?
- Explain the market size – how big is the market in terms of number of people and annual dollars spent?
- Your marketing plan – explain how you plan to promote this business.
- How you will make money – explain how you plan to earn revenue.
- Financials and unit economics – give an overview of the economics of the business.
- Competition – explain who your competitors are, and how your business is different from the competition.
- Current team – list the key members of your founding team with their credentials.
- Previous investors and funding – tell the reader about any previous investment or cash injection into the company.
Video Tutorial About An Executive Summary
Further Business Planning Resources
Take a look at a business plan course I created. The course goes over each section of a business plan and explains what to write in each section, and how to think through each section of a business plan. Here are more details about the business plan course and here is the business plan course on Udemy where you can take a look at the curriculum and purchase the course.
Additionally, if you are starting a business, I wrote a book on starting a business by going from business ideas to an actual business. Here is more information about the business starting book and here is the business book on Amazon.
Additionally, here is the iPhone business plan app and the Android business plan app which can help you write your business plan, and fill out the executive summary template right inside the app.
Author: Alex Genadinik
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