A business plan executive summary is a quick introduction and summary of your business strategy. It should describe your company, the problem it answers, its target market,<\/a> and key financial figures.<\/p>\n\n\n\n An excellent executive summary captures the attention of your reader and informs them of what you do and why they should read the rest of your business plan or proposal<\/a>. It is fairly uncommon for investors to make an early judgment based only on an executive summary. Hence it is critical to get it properly. We’ll show you how to create an executive summary that distinguishes your business plan from the competition.<\/p>\n\n\n\n As a result, the executive summary is frequently referred to as the most significant portion of the business plan. If it fails to pique the reader’s interest, the plan will be filed away unread – a nightmare if you’ve developed your business plan to secure funding for your new venture. (Getting money for a start-up isn’t the only reason to prepare a business plan<\/a>; there are several more that are equally vital.)<\/p>\n\n\n\n The executive summary is usually written last because it is an overview of the complete plan (and writing it last can make it much easier).<\/p>\n\n\n\n The information you must give differs based on whether your company is a startup or an established one.<\/p>\n\n\n\n One of the primary aims of a beginning business plan is to persuade banks, angel investors, or venture capitalists to invest in your company by providing initial cash in the form of a loan or equity finance<\/a>. To do so, you’ll need to build a strong case for your business idea. This makes your executive summary even more vital. The following sections are typical in an executive summary for a startup company:<\/p>\n\n\n\n In the case of established businesses, the executive summary often includes information about accomplishments, expansion goals, and so on. A typical executive summary outline for a well-established company would include:<\/p>\n\n\n\n Begin by going through the list and writing one to two sentences about each issue (depending on whether your business is a startup or an established business). No longer!<\/p>\n\n\n\n Has difficulty getting started? The simplest way to write the executive summary is to go over your business plan<\/a> and extract a summary phrase or two from each of the sections you’ve previously prepared.<\/p>\n\n\n\n When you compare the above list to the components defined in the Business Plan Outline, you can see how well this could function.<\/p>\n\n\n\n Finish your executive summary of your business plan with a gripping final line or two that answers the reader’s query, “Why is this a winning business?”<\/p>\n\n\n\n The details will be included in the business plan, and whether bank managers or investors, the readers of your plan do not want to spend their time.<\/p>\n\n\n\n Don’t use sloppy wording in your executive summary. Instead of saying, “Dogstar Industries might be in a good position to receive government contracts,” say, “Dogstar Industries will be in a good position\u2026”<\/p>\n\n\n\n Resist the urge to fill out the executive summary of your business strategy with specifics (or pleas). The executive summary’s purpose is to offer the facts and encourage your reader to read the whole of the business plan, not to tell him everything.<\/p>\n\n\n\n Read it out loud. Is it smooth, or does it sound choppy? Is it clear and concise? Once it sounds excellent to you, have someone else read it who is unfamiliar with your industry and provide comments for improvement.<\/p>\n\n\n\n If the goal of your business plan is to entice investors, for example, your executive summary should focus on the potential your company offers and why it is unique. If the goal of your business plan is to obtain a small business loan, emphasize what traditional lenders like to see, such as management’s industry knowledge and the fact that you have both collateral and methods in place to reduce the lender’s risk. <\/p>\n\n\n\n Put yourself in the shoes of your readers\u2026 and reread your executive summary. Does it pique the reader’s curiosity or excitement? If not, why not?<\/p>\n\n\n\n Bankers, contrary to popular belief, never take chances on business proposals. To entice bankers to continue reading, the executive summary should include the six primary factors mentioned at the beginning of this article, as well as a few extra aspects that highlight stability, assets on the balance sheet, and financial history, demonstrating that the loan is not dangerous. Banking law, with one significant exception, prohibits banks from lending money to businesses that do not have adequate assets to support the whole amount of the loan and then more. That is a violation of banking regulations.<\/p>\n\n\n\n Professional bankers will request a business plan as part of a loan application because they genuinely want to know and understand your company, but they will not take risks. This overview is not intended to persuade or sell, but rather to reassure and describe.<\/p>\n\n\n\n So what works for a banker’s executive summary is very different from what works for an investor’s summary.<\/p>\n\n\n\n Whereas investors want to see startup experience from the management team, bankers want to examine the personal net worth of the firm owners. The more collateral, money, or other investment you have, the more probable it is that you will be able to secure the loan.<\/p>\n\n\n\n Whereas investors are looking for future potential growth, lenders are looking for prior financial history and bankable assets. Attempt to have all financial information about yourself, existing investors, and any previous enterprises available upfront.<\/p>\n\n\n\nWhat Information Should Be Included in an Executive Summary?<\/span><\/h2>\n\n\n\n
\n
Executive Summary Contents For Established Businesses<\/span><\/h3>\n\n\n\n
\n
How Do I Write a Business Plan Executive Summary<\/span><\/h2>\n\n\n\n
![\"How](\"https:\/\/businessyield.com\/wp-content\/uploads\/2021\/07\/Executive-summary-featured.png\")
<\/a><\/figure>\n\n\n\nThe Simplest Way to Write One<\/span><\/h3>\n\n\n\n
Read Also: Example of a Business Plan Executive Summary<\/a><\/span><\/h5>\n\n\n\n
Tips on how to Write the Executive Summary of a Business Plan<\/span><\/h3>\n\n\n\n
#1. Concentrate on delivering a summary. <\/span><\/h4>\n\n\n\n
#2. Maintain a strong and cheerful tone in your discourse. <\/span><\/h4>\n\n\n\n
#3. Keep it brief <\/span><\/h4>\n\n\n\n
#4. Improve your executive summary. <\/span><\/h4>\n\n\n\n
#5. Make it relevant to your target audience. <\/span><\/h4>\n\n\n\n
How to Write an Executive Summary for a Bank Loan<\/span><\/h3>\n\n\n\n
#1. Describe your personal net worth.<\/span><\/h4>\n\n\n\n
#2. Make your financial history and bankable assets available to the public.<\/span><\/h4>\n\n\n\n
#3. Demonstrate your potential for stability and longevity.<\/span><\/h4>\n\n\n\n