An executive summary is a critical component of any business plan or report. This overview at the beginning of your document introduces readers to your idea and grabs their interest so they keep reading.
Writing a compelling executive summary is both an art and a science - you want to pique curiosity and provide hard facts. This article provides a step-by-step guide to crafting the perfect executive summary, including templates, examples, tips, and FAQs.
With the right framework, you can produce an engaging executive summary tailored to your business. Let's dive in to the key steps for creating an impactful overview for any document.
An executive summary briefly summarizes the key points of a lengthy business document, plan, or report. It gives readers an understand of what the full document covers at a high level.
Think of it as an elevator pitch version of your entire report or proposal. The executive summary previews the purpose, structure, methods, findings, conclusions, and recommendations covered in the full document.
While executive summary content will vary based on your specific document, some standard elements to cover include:
Start with 1-2 sentences broadly explaining what the document is about and its purpose. For example, “The following business plan outlines the launch of Acme Analytics, an AI-powered analytics consulting startup."
Concisely explain the problem or need your document aims to address. For example, “Businesses in the manufacturing sector face rising costs due to unplanned equipment downtime and maintenance expenses."
Summarize your proposed solution, product offering, or services that will address the problem statement.
Define the target market and audience for your offering. Include relevant demographics, buying trends, and market size estimates.
Briefly describe the competitive environment, naming major competitors and positioning your value proposition against them.
Outline the main goals, milestones, and objectives covered in the full plan. Include a few key metrics.
Summarize at a high level the proposed methods, process, research conducted, or overall strategic approach detailed later.
Provide key measurable outcomes and financial projections highlighted in the document such as expected sales, market share, ROI, etc.
Close by summarizing your overall conclusions, recommendations, or next steps based on the analysis contained within your full report or plan.
Here is an executive summary template you can use as a starting point when crafting your overview:
Executive Summary
Overview statement providing brief context - 1 sentence
Problem statement/current situation in the market - 1-2 sentences
Proposed product/service/solution to address the problem - 1-2 sentences
Target customer and market overview - 1-2 sentences
Competitive landscape with positioning statement - 2-3 sentences
Goals, objectives, and critical success factors - 3-5 bullet points
Methods, process, research/analysis done - 1-2 sentences
Anticipated results or projections - 1-2 sentences and 2-3 key metrics
Conclusion and recommendations summary - 1-2 sentences
Let’s look at two examples of effective executive summaries, one for a business plan and one for a market analysis report.
Here is a sample executive summary from a startup business plan:
The following business plan outlines the launch of Therasoft, an ergonomic software company designing solutions to improve workplace productivity and prevent repetitive stress injuries.
Due to increased device usage, 50% of the workforce suffers from regular back, neck, and wrist pain. Existing ergonomic software does not fully address injury prevention and productivity optimization. There is a clear need for a holistic solution.
Therasoft offers a cloud-based ergonomic software suite providing real-time biomechanics analysis, micro-break prompts, and tailored ergonomic workflows. Our target B2B market is corporations with desk-based employees.
Our competitor ErgoApp offers basic break reminders and posture prompts. Therasoft further optimizes workflows and provides analytics around injury risks.
Our launch goal is to sign 3 Fortune 500 companies as clients in year 1. We expect 50% customer growth for the first 3 years. Therasoft will generate monthly SaaS revenue averaging $150k in year 1 and exceeding $1M by year 3, for 75% profit margins.
In conclusion, Therasoft’s patented software suite presents a compelling value proposition to reduce repetitive stress injuries and maximize productivity. This plan details how we will penetrate the corporate ergonomics market and rapidly grow revenue over 3 years. We recommend seeking $500k in seed funding to support software optimization and sales growth.
Here is an example for a market analysis report:
This report analyzes solar panel market trends in the United States to determine viability for a new entrant. It provides solar market size predictions and evaluates competitive forces and optimal positioning.
Demand for residential solar panels is rising as costs fall, but 60% of the market is controlled by two established brands, SunPower and Tesla. Consumers cite lack of awareness and customization options.
SolarBright will target residential customers with customized panel kits for easy DIY installation. Focusing on design flexibility and consumer education will differentiate us from competitors.
The U.S. residential solar market is projected to grow at an annual rate of 19% over the next 5 years as adoption increases, reaching $25.7B. SolarBright will capture 2% of market share in year 1.
An investment of $700k in automated customization technology and targeted digital marketing will position us for $15M in annual revenue by year 3. We recommend entering this high growth market immediately with a focus on flexible solutions and consumer education.
This report details the solar panel market analysis supporting these recommendations.
Use these executive summary tips and best practices:
Avoid overly-detailed descriptions. Focus on summarizing only the most essential points. Assume readers have basic knowledge of your industry.
Open by clearly establishing a need and how your document addresses it. Hook readers with relevance.
Explain how your solution or offerings deliver unique value. Include benefits and competitive differentiators.
Accurately mirror the structure, goals, and recommendations contained in the full version to avoid confusion.
Include concrete statistics, projections, and metrics that convey scale, benefits, and growth opportunities. Numbers demonstrate credibility.
Executive summaries are typically 1-2 pages at maximum. Remain concise and scannable.
Draft your full report/plan first so you understand all key elements to summarize. Writing the executive summary first can lead to misalignment with your detailed content. Know your full document inside and out before summarizing.
Use short paragraphs, bullet points, and other simple formatting to enhance skimmability for busy readers.
Steer clear of these common executive summary pitfalls:
Don’t get bogged down in explanations of methods and secondary points - save details for body. Stick to summarizing only your report’s most critical information.
While you want to generate excitement, avoid excessive hype about your product. Let facts speak for themselves.
Spell out terms instead of using acronyms. Define industry lingo for a broader audience.
Don’t include information that differs from the data, recommendations, and conclusions contained in the report itself.
It should logically flow in the proper order - problem, solution, key points, conclusions. Avoid randomly organized bullets.
Double check for typos, spelling errors, and clumsy sentence structure that detract from professionalism.
Here are answers to common executive summary questions:
Aim for 1-2 pages at maximum. Executive summaries for business plans are typically 1-1.5 pages, while report summaries may be shorter at 3-5 paragraphs.
Write it last, after completing your full report or plan, so you fully understand the key elements to summarize accurately.
Avoid explanations of research methodologies, minor details, and anything that doesn’t directly support your most important points. Leave out fluffy language and unnecessary examples.
It should strike a balance between formal/professional and conversational/engaging. You want data-driven facts but in an easy-to-digest style.
Target executives and managers who need a high-level grasp of your document’s contents, goals, findings, and recommendations.
Use short 1-3 sentence paragraphs, bullet points, headings, and other simple formatting techniques to enhance skimmability. Chunk key information.
A well-crafted executive summary gives readers an accessible overview of your full report or business plan. Follow the steps in this guide and use the templates and examples to produce a compelling high-level summary tailored to your document goals.