Executive Summary of a Business Plan

The executive summary is more like an intentional précis of your business plan that
in a given length illustrates the what, why, how along with when and where (if
needed) of the whole document. It has to be crafted so it gives the reader an
incentive spur to deep-dive into the details and particulars.

Importance of an Executive Summary for a Business Plan

An executive summary is the imperative most organ in the anatomy of a business

plan, which contains and displays its forthcoming essence. An ideal business plan is
one, which if the need arises, can be effectively used as a business proposal with
little or no tweaks. So, an executive summary of a business plan should necessarily
incorporate a call towards action.

So, the executive summary need to be crafted really smartly since a blatant pitch
would not leave a striking impression. Yet, the pros should be placed well so as to
never lose any potential partners or investors.

How to Write an Executive Summary for a Business Plan

Components of an Executive Summary

Content of an Executive Summary

Length of an Executive Summary

When to Write an Executive Summary

How to Write an Effective Summary for a Business Plan

In order to keep the executive summary brisk and effective, fully master and
exploit the use of clichés and felicitous phrases for your business writing. These can
be excellently used to say much in a few words. With the right full use of these
resources, you can be simple and direct towards your goal instead of twining
around long and boring ramblings.

Consider the example…

Instead of:

“The set up is fully functional and has a huge system for managing the working
operations. This helps us in effectively dealing with all types of procedures
regarding retail distribution and wholesale. We also provide services in global trade
along with distribution”

Write:
“In terms of functionality and operation, it is a global business maneuvering in the
facilities of retail, wholesale, worldwide trade and sales and distribution.”

Components of an Executive Summary

An external business plan should summarize the following elements in its executive
summary:

Brief introduction and key highlights of the product or service that you are pitching
for

Background of the company

Competitive edge of your business

Where and why you make or could make a difference in the current market

How you will make a difference through your scheme

An executive summary for an internal business plan should not be much formal. It
would highlight the following elements depending on its type and requirement:

Operational Costs

Present vs. Required Resources

Break down of Costs and Expenses

Categorization of Company’s Infrastructure and Personnel

Content of an Executive Summary

An executive summary for a business plan is the last thing written since it has to
outline the whole anatomy of the document and briefly explain the action plan,
mission statement and the means and ends of the whole idea.

First appearances do matter!

In the executive summary either you grab your reader’s attention or kiss it goodbye
for once and all. You have to make a point with the reader and get him to buy your
scheme or technique:

Admiration for your scheme

Belief and conviction in your modus operandi

Trust and confidence

If these accomplished, consider half of the deed done and the business plan has
served for what it was drafted in the first place.

To generate content for the executive summary follow these steps:

The executive summary of the business plan would be built around a few key
components

Decide and choose what points you are going to highlight in your executive
summary

Jot down paragraphs for each component

Now, arrange the paragraphs in a systematic pattern that would give the whole
summary a natural flow and easy understanding

You should see your executive summary as an individual document and if it makes
sense and gives readable-understanding alone, then it’s perfect

Proofread twice before you put it in the actual draft

Length of an Executive Summary

An executive summary is a summing up, so the more precise and to the point it is,
the much better. Though there exists the concept of extensive summaries sprawling
over the length of 5 to 6 pages, but that is supposed to be covered by the business
plan itself. So the more specific it is, the more attentions it would grab.

An executive summary is often mistaken to be a summary memo, which it is not.

The later is a document that is used as a substitution for a business plan, at times.
So, an ideal business plan would have an executive summary of one page which
could reach one and a half or two pages at the maximum.

Rule of the thumb: KISS principle

Note: Executive summaries written for business plans dealing in technical, medical
and the like are different and would have exceptions.

When to Write an Executive Summary

It is best to write the executive summary when you are done with the business plan
or have outlined the pattern that you are going to follow. A common mistake while
writing an executive summary is to take it as an outline for the actual document.

It is not an outline. It is a synopsis and short map of the actual thing and should
necessarily focus on leading a reader to delve and go through the rest of the
business plan with attention and interest. It should establish the authority for the
existence of the actual business plan and should rouse self-interest for the reader.

So, the best practice is to write the executive summary in the end so you can plan
its direction and pitch in detail while keeping in lieu with what you are providing in
the business plan.

How to Write an Executive Summary for a Business Plan

To generate content for the executive summary follow these steps:

The executive summary of the business plan would be built around a few key
components

Decide and choose what points you are going to highlight in your executive
summary

Jot down paragraphs for each component

Now, arrange the paragraphs in a systematic pattern that would give the whole
summary a natural flow and easy understanding

You should see your executive summary as an individual document and if it makes
sense and gives readable-understanding alone, then it’s perfect

Last but not the least, proofread twice before you put down the executive summary
in your business plan