An executive summary summarizes your entire business plan in two or three pages.  This is a tall order and can be very difficult to accomplish.  You want the executive summary to be concise and brief, yet complete, extensive and inclusive.  This article will show you how to write an executive summary that is effective, concise, yet adequately covers your entire business plan.  This article will also provide an overview on the sections of a business plan which are important to include in your executive summary and explain different uses for an executive summary.

Process

It is important to complete your Business Plan before developing the executive summary as the executive summary section will succinctly summarize the entire plan. Pick out the most important sections of the business to place in the executive summary. Be sure to order the summary’s section in a fashion that makes logical sense and flows well. First step should be to outline each of the plan’s major sections, and then write your draft summary using the outline. The first draft is typically around ten pages. Take this draft and condense it to five to seven pages – we call this the long version executive summary, which is really a mini business plan. Then take the long version summary and develop your short version summary, which will be two to three pages in length and highlights the most important sections of the business plan. It will take at least three rounds of outlining, writing and condensing to get an effective executive summary. Later on in this article I will explain the different uses of these executive summaries.

Organization

Here is a suggested fourteen section executive summary format to use.  Amend it for your particular use.

Section One – Company Information

Section Two – Business Plan Purpose and Objectives

Section Three – Company Goals and Vision

Section Four – Company Mission Statement

Section Five – Company Description

Section Six – Company Purpose

Section Seven – Company Situation

Section Eight – Founders, Management and Principals’ Capabilities

Section Nine – Products and Services

Section Ten – The Competition

Section Eleven – Keys to Success

Section Twelve – Finance

Section Thirteen – Growth and Expansion Goals

Section Fourteen – Return on Equity and Investment

Uses

The executive summary gives the user a quick overview of the important facts contained in your business plan.  The long version can be used as a standalone document, i.e. a mini business plan, or to succinctly explain your business and generate interest in your opportunity, products and services.  The long version summary can be sent to an investor or venture capital firm, accompanied by a venture or investment overview to generate and gauge initial interest.  If the VC firm or investor indicates interest, you can then send your custom tailored, to their investment objections and requirements, financing business plan which contains the shorter version executive summary.  Long and short versions of your executive summary can be used as a sales document; to approach new suppliers and customers; or to accompany a Loan Package to a lender; to accompany your marketing plan or strategic plan. It is an initial stand-in for your business plan.  The executive summary is not just an overview, but a tool to be used to accomplish your business goals.

About the Writer

This article is written by Frank Goley, business consultant for ABC Business Consulting. Frank is an expert in writing, developing and implementing business plans, business turnaround plans, business funding plans, marketing plans and strategic plans. Frank offers comprehensive business consulting, business coaching and business turnaround consulting to small and medium size companies . Frank is author of The Comprehensive Business Plan Workbook – A Step by Step Guide to Effective Business Planning, and he has over 30 published articles on business success strategies. He also writes the Business Success Strategies blog.