How to Write an Executive Summary: Tips+Free Template

Executive summaries and this sentence have one thing in common: they both act as a hook.

If I’m lucky, that first sentence will intrigue you enough for you to keep reading. And if an aspiring small business owner has the same luck, the person reading their executive summary will continue to review the rest of their business plan.

When time is of the essence, you have to make each word count. An executive summary is an overview of a document. It’s your one shot to make a lasting impression and get your key points across in minutes.

Think of it as the appetizer to your main course: a taste of what's to come, delivered in a bite-sized package.

With document creation software, writing an executive summary has never been easier. These tools offer executive summary templates that can be useful when drafting your first one.

Let's dive into the art of crafting a compelling executive summary that leaves a lasting impression.

What is the purpose of an executive summary?

The main purpose of an executive summary is to brief the reader about everything else in the document. It should provide the main points that will be discussed in more detail later on.

The key points are summarized to make the reader interested and curious. Essentially, it is the first selling point of your business. When done correctly, a good executive summary will make it difficult for readers to read the whole document.

While that may be the goal of the executive summary, the goal of the overall business plan or report, where the executive summary lives, is to convince people that your business has the potential to be profitable, succeed, and grow.

It can be easy to summarize your document quickly, call it an executive summary, and slap it on a piece of paper. But that might not yield the desired results. To ensure your business plan is the complete package, polishing up your executive summary and reaping the associated benefits is a good place to start.

Elements of an executive summary

Without the right elements, your executive summary will be skimmed over without much thought or excitement about your business. Because it compiles all the elements of a business plan, an executive summary has the same components. It’s just more brief.

Introduction

Yes, it is strange, but the introduction to the business plan also has an introduction. In this opening statement, introduce the purpose of the document and everything else that will follow. This is your chance to grab their attention.

Company description

This part is simple: describe your company. Give the name of the business, background information on founders or investors, the mission, vision, and values, location, and size. Wherever your business stands (physically and historically), explain it.

Product or service

Next, dive into your product or service. Tell readers what you are selling, the problem it solves, and the need it fulfills. Focus on the value and benefits your business will provide. This is the focal point of your business, so if the presentation of the product doesn't impress, you might lose your audience. 

Market analysis

Then, you will briefly state the findings from your market research. Talk about how you found your customer base and how you will target them. Discuss their likes, dislikes, pains, buying habits, and demographics. Further, explain how you plan on expanding that customer base and the marketing tactics you will use to do so.

The analysis also includes explaining the market opportunity for the product or service you are providing. Identify your competitors and explain how you stand out.

Organization and management

This section should summarize how you plan to organize your business in terms of leadership, as well as who those leaders are. Having solid leadership and organization in place is a good sign that investors will love.

Funding request

Often, creators of business plans are distributing them to convince investors to contribute to the business funding. If this is the case for you, it is important that you be upfront with your funding request and put it in your executive summary. If you wait until the end and the investors don’t like the number they see, not only will they not invest, but they won’t be very happy with you either.

Financial projections

To back up your request for funding, provide a researched and accurate projection of how profitable your business can be. The details and methods you used to get this number can be discussed later in the business plan.

Executive summary template and example

It's helpful to see a real-world example to understand how to write an effective executive summary fully. Below is a sample executive summary for a fictional company, GreenTech Innovations, which is seeking funding to expand its line of eco-friendly products.

As you write your executive summary, make sure to include anything you think is important enough to place at the forefront of your document, whether it is in the template or not. As long as it is relevant and organized, you will be good to go.

If you don’t want to draw up an original outline of an executive summary, we put together a great template that can work for all business types. All you have to do is print it and fill it out.

Common mistakes to avoid in an executive summary

When crafting an executive summary, it's crucial to steer clear of these common pitfalls.

Being vague or adding too much information

One of the biggest mistakes is not providing enough detail. A vague executive summary can leave readers confused about your goals, strategy, or value proposition. While it should be concise, it’s crucial to include specific figures, timelines, and clear outcomes that give decision-makers the information they need to act.

On the flip side, an overly detailed executive summary defeats its purpose. The goal is to provide a snapshot, not to rewrite your entire report. Stick to the high-level points that matter most to your audience.

Failing to tailor it to your audience

A one-size-fits-all executive summary won’t get the job done. Always tailor the content to the specific stakeholders who will read it. If you’re addressing investors, focus on ROI, financial projections, and market opportunities. If it's for internal stakeholders, emphasize operational efficiency or company alignment. Knowing your audience is key.

Not highlighting the purpose

Readers should be able to understand the main goal or objective within the first few sentences of your executive summary. A well-defined purpose provides a framework for the rest of the summary. For example,

• Poor: This report provides an overview of our recent marketing campaign.
• Better: This report outlines the successful strategies employed in our recent marketing campaign, which resulted in a 25% increase in sales.

Ignoring the focus on problem and solution

A strong executive summary must clearly define the problem your business or proposal is addressing and offer a compelling solution. Failing to do so makes it harder for readers to grasp why your project matters and what outcomes you aim to achieve. Be sure to state the problem and your unique solution to it succinctly.

Using jargon or complex language

While you may be deeply familiar with the technical or industry-specific terms, your readers may not be. Overloading your summary with jargon or complex terminology can alienate potential stakeholders. Instead, use clear, straightforward language that ensures your message is accessible and easy to digest.

Time to summarize

Putting effort into your executive summary will only benefit you in the long run. It provides you with the perfect opportunity to present your business and make your case as to why the readers should care. If you are stuck working on your executive summary, refer back to the provided template above.

Not a fan of templates? You could always have some professionals take care of your executive summary. Check out G2's highest-rated business plan consultants. 

This article was originally published in 2019. It has been updated with new information.