Are you in dire need of the simplest way to write an efficient executive summary? Do you want to learn how to write an executive summary? If yes, then read this article to the last line as it’ll succinctly enumerate the steps involves in writing an effective executive summary.
The important of an executive summary in a business plan or any kind of writings that involves planning cannot be overemphasized. Thus, learning how to write an executive summary is a step well taken.
Before going farther, it is very important we briefly define the key concept in our topic of discussion. Doing this will gives you the necessary insight as a preamble before going deeper into the business of the day. Hence, this lead us to the question: what is an executive summary?
What is an Executive Summary?
An executive summary is a concise or short-like presentation of a report or a business proposal. It’s a summary meant to caption key points in the business proposal or report.
Virtually, executive summary is paramount to an entrepreneur and/or an aspiring business person as cover letter makes choice for an employee in job interview.
One will understand that, Cover letter in employment processes goes a long way in securing the job for the applicant as it’s expected to capture the brief summary of what your curriculum vitae entails and how good and experienced a person is.
Similarly, an executive summary is believed to be a condensed form of a business plan and an attention policy. It’s a volume that summarises the most important parts of a report or plan. In not more than 2 minutes, It’s expected to clutch the reader’s attention.
Ultimately, the executive summary is intended to inform recipients of the business plan, some important informations in the plan, thus, they (readers/recipients) do not have to read it all before getting the scope and goals of the report.
It should be kept simple, accurate and straightforward. That is to say; the executive plan is to give the overview of your entire plan. Therefore, it’s expected to come last in any business plan.
An overview of executive summary for a small business
As an entrepreneur or a business minded person, it is crucial you note that the business plan is a very cognitive plan in setting up a successful business. It’s reported that 30% of those with business plan progressed positively compared to those without a plan.
That shows how important it is to have a plan ahead before setting up a business. Essentially, business is not just about money. Money in business is unarguably substantive.
When you have the money to start a business, you are 45% ready but don’t be surprised if I tell you that, those that have capital but lack financial intelligence and business knowledge have failed in attaining success in the business world.
Importance of executive summary
Before moving further on the topic of discourse; how to write an executive summary, it is vital we highlight some characteristics of executive summary to a business plan. To wit:
- Business is not all about intensive startup capital, having a standard business plan makes one hopeful of a prosperous business year ahead. Therefore, one should think of an executive summary as an advance knowledge for the reader.
- For a small business starter or an entrepreneur who’s battling to get capital to start his/her business, an executive summary will give you a clear head on how to secure an investor or banker’s attention.
- It will tell your investor why he/she needs to fund your business, the benefits it brings and most importantly, what the person will lose if your business plan isn’t granted the fund to start a business. Then, it has to persuade the reader to read the rest of the business plan.
- The reason the executive summary is often addressed as the most important part of a business plan is that it’s the key that most likely, open the door to success for most business persons.
- If it doesn’t capture the reader’s attention, the plan is most likely to be swayed in the air – a setback for an aspiring entrepreneur who has no capital but depends on the grant.
How do I write an Executive summary for my business?
This is the question that needs an answer as soon as you set to write a business plan. It’s quite simple compared to a business plan as it only captures the ‘green’ areas of your business plan.
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It chiefly comes last in business planning. It won’t be hard to write one, once you follow the below guidelines on how to write an executive summary with ease;
- Research your idea
- Have defined goals
- Company’s information
- Financial summary
- Write it last
1. Research your Idea:
Even though your executive summary must be upshot, it has to be detailed enough to capture the reader’s attention. Your research must be analytic, factual and must explain the reasons why you choose to go with the business.
In business world, it’s important to note that; an entrepreneur must be full of ideas either through reading of books or work experience. Your research should also tell how competitive your business is.
2. Have Defined Goals (Short and Long time goals)
The business plan and executive summary should capture one’s visions. The goals must be well spelt and feasible enough to convince your reader. It would be a nightmare to have a plan that can’t be achieved with the proposed fund.
The company’s goals in few years times must be cleared, and the plan of actions in achieving the set goals must be addressed. It shouldn’t take more than three to four lines.
3. Company’s Information
An executive summary should provide a preview for investors or readers to have the first hand gist of the rest of your report. An executive summary should encompass the Company’s name, the mission, the Creeds and the target.
4. Financial Summary
One of the reasons of having an executive summary is to draw the attention of investors and CEOs to fund the business. Here, the financial challenge (if there’s any) should be included.
Having an incredible plan will surely go a long way in securing a start up grants for your proposed business. You have to do your research well and be answerable to your facts while writing an executive summary.
5. Write it last
Since the Executive summary is the concise form of a business plan, it should always come last. Though some people prefer writing it before the business plan. It’s ultimately accurate to write it last in order not to miss any important thing while writing it.
However, writing it last doesn’t mean it should be placed behind the business plan. It should be at the front page of your business plan while submitting it for a purpose. It may be for a start-up grant or partnership.
Hints for Writing a Small Business’s Executive Summary
The following are the basic principles of writing an efficient and workable executive summary, do take it serious:
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1. Be upshot
Yourwriting must be a summary of your business plan. For a small business plan, It shouldn’t be more than two pages, at most. You should therefore, choose the most important things before the less important.
2. Be Accurate
Don’t be overly wise while writing an executive summary, it may put an end to your plan. Be truthful and accurate. Remember that, the executive summary is a short form of the business plan, there shouldn’t be any difference in the content.
3. Use simple words
The problem with some entrepreneurs is the use of words. They give prevalence to complex vocabularies rather than using simple terminologies.
Be careful on what words to use, do not send your readers to dictionary upon reading your summary. Make it simple and detailed.
Since an executive summary is expected not to be more than two pages report, your summary will not entail every content in your business plan, thus, there’s need to give prevalence to some aspects like the the financial analysis, company’s goals, Market competition and the likes.
As you know that business is all about strategy and competition. One needs to be smart in playing the frontline in the business world. Your creativity is required in writing a magnificent executive summary.
You only have approximately two minutes to persuade your readers or investors to buy your products. If your summary is not convincing enough, there won’t be need to read the business plan.
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The relationship between a business plan and a new startup venture is one that is made from heaven so is the relationship between an efficient business plan and an executive summary.
Thus, if you take your time to read and study the above discourse line by line, you should by now know all the procedures involves on how to write an executive summary with ease.