The executive summary is often considered the most critical section of a business plan, serving as both a first impression and a high-level overview of your business concept. While it appears at the beginning of your plan, it should be written last, after you have developed all other sections and have a comprehensive understanding of your business strategy.
A compelling executive summary must accomplish several key objectives in typically no more than two pages. Think of it as your “elevator pitch” in written form—you need to capture the reader’s interest and communicate the essence of your business in the time it takes to ride an elevator.
Start Strong with a Clear Value Proposition
Begin your executive summary by clearly stating what your business does and its unique value proposition. For example, rather than simply writing, “We are a web development company,” you might say, “We help small businesses maximize their online presence through custom, affordable web solutions that generate measurable results.” This immediately tells readers what you do, who you serve, and what makes you different.
Focus on Market Opportunity
Include key market research findings that validate the opportunity. According to the U.S. Small Business Administration, approximately 32.5 million small businesses operate in the United States, representing a significant market for B2B services. However, only use statistics that directly relate to your specific market opportunity and always cite credible sources.
Highlight Your Competitive Advantage
Explain what sets your business apart from competitors. This could be proprietary technology, unique expertise, strategic partnerships, or an innovative business model. Be specific about your competitive advantages and avoid generic claims that could apply to any business.
Present Clear Financial Highlights
Include key financial projections, but keep them realistic and well-supported. If seeking funding, clearly state how much money you need, how you will use it, and how you plan to provide returns to investors. For example, “We are seeking $500,000 in initial investment to fund equipment purchases and working capital, projecting a return on investment within 36 months through consistent market expansion.”
Demonstrate Management Capability
Briefly highlight the relevant experience and qualifications of key team members. Investors and lenders often say they invest in people first, ideas second. Show that your team has the expertise and track record to execute your business plan successfully.
Keep it concise and professional
Use clear, confident language while avoiding industry jargon. Every word should serve a purpose—there’s no room for fluff in an executive summary. Write in an active voice and maintain a professional tone throughout. Remember that this document may be the only part of your business plan that some readers review in detail.
End with a Call to Action
Conclude with a clear statement of what you’re seeking from the reader, whether it’s investment, partnership, or simply their continued attention to the rest of your business plan. Make it compelling but not pushy.
The executive summary may be the last section you write, but it’s often the first (and sometimes only) section others will read. Take the time to craft it carefully, review it multiple times, and have others provide feedback. A well-written executive summary can mean the difference between securing that crucial meeting with an investor and having your business plan filed away unread.
Remember to revise your executive summary periodically as your business evolves and grows. What was compelling during your startup phase may need updating as you expand or pivot your business model. Keep it current, relevant, and aligned with your business objectives.