What is an Executive Summary?
An executive summary is an essence and an essential part of the business plan. It provides a short, concise, and optimistic overview of the business, aims to capture the intended stakeholders’ attention, and provides them with a thoughtful glimpse of business nature.
The Executive Summary concise the Company’s mission and goals, how a business will start or perform its operations, and how it is looking forward to the future outlooks keeping in view the market and industry trends. The business plan aims to convince banks, debtors, and investors and a strategic road map for the management.
Elements to Include in Your Executive Summary for a Startup Business
- Introduction –draws a complete picture of the organization’s aims and objectives and how they will be achieved.
- Opportunity – explains the need or the opportunity and how a business will serve the market.
- Business model – details the products or services, which will make them appealing to the target market and revenue streams.
- Target market – classifies the customer base to be targeted.
- Competition – identifies the competition, competitive advantages, and strategies for getting market share.
- Marketing and sales strategy – briefly outline the plans for marketing products/services.
- Financial analysis – summarize the financial highlights for the next five years.
- Management – presents the owners and the key staff members and the expertise they bring to the venture.
The Executive Summary includes information about achievements, growth plans, expansion plans, and established businesses’ marketing strategies. An executive summary outlined for an established business includes:
- Business information – Gives a brief history of the business, when and where it was formed, products or services, owners and key employees, statistics such as the number of employees, and business locations.
- Business highlights – define the business’s evolution and how it has grown, including year-over-year revenue increases, profitability, increases in market share, and customer numbers.
- Financial Summary – if the purpose of updating the business plan is to seek additional financing for expansion, it gives a brief financial summary.
- Future goals – describes the goals for the business. If the business seeks financing, explains how additional funding will be used to expand the business or otherwise increase profits.