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Business Plan Synopsis Example & Guide

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Having a business plan synopsis example and guide might be what you need to draft a great business plan. Many entrepreneurs overlook the importance of drafting an effective business plan when launching their venture. However, it is a critical step that can benefit any small or large-scale operation. This blog post is an excellent resource for creating a perfect business synopsis with a template.

What Is a Business Plan Synopsis?

A business plan synopsis is essentially a summary of your overall business strategy. It provides an introduction to your broader goals and objectives while also addressing crucial themes like market research and financial predictions. A good business plan synopsis helps you define your vision and mission, target market research, and financial estimates. It should provide readers with a basic understanding of how you plan to achieve success within the industry.

Elements of a Business Plan Synopsis

To provide a comprehensive example of what should be included in your business plan synopsis, here is a breakdown of each key element: Mission Statement: Outline the overall mission and vision for your business that sets out to achieve a specific goal. Target Market: Identify who you plan to target as your primary market while covering any secondary markets and their needs. Financial Plan: Outline any financial projections you have in place, such as profits and losses. Competitive Analysis: Research the current market competition and identify how to compete against them. Marketing Strategies: Introduce how you plan to market your business, whether through online strategies or traditional advertising channels. SWOT Analysis: Outline your venture’s strengths, weaknesses, opportunities, and threats.

How to Write a Business Synopsis

While seeking additional money, small business owners often devote a sizable portion of their time to networking with potential lenders and investors. A well-written business summary is essential to any plan for acquiring financial backing. You can think of the synopsis as an abbreviated version of the whole business plan for your startup. It should recap the company’s past successes and forecast its future expansion over the next three to five years. A potential lender or investor should be able to read the executive summary and grasp the company’s mission and plans in minutes.

Your Business Plan

You need to complete the whole business plan before going on to the summary. Your business strategy should outline the departments and goods your company provides. You can discuss your R&D strategy and current projects if you develop new items. Examine your business’s sales goals and marketing strategy in detail to round out your proposal. The company’s current financial situation and its anticipated financial situation over the next few years should be detailed in this section.

Market Conditions

Don’t forget to include a short section outlining the present market conditions your organization is up against. Sales forecasts for the company and the industry should be discussed here. It’s also fair game to talk about what your rivals are up to and how that can affect your operations. Don’t be shy about highlighting your small business’s benefits over its larger rivals. Benefits could be your intimate knowledge of the area or your longstanding ties with locals who could become customers. You should also include in this area any impending tax law changes or other legislation that will impact the business.

Executive Summary

For many startups, the executive summary is their last opportunity to impress potential investors. Even if you have a great business plan, it will look amateurish if it has typos, wrong information, or poor formatting. Before you send out the synopsis, be sure it has been proofread. It’s time to get a second opinion if you’ve read the work so many times you can’t see errors. The business overview should flow naturally when read out loud, so be sure to read it.

Infographics

If possible, represent numerical information through charts and graphs. The organization’s financial status is much simpler to grasp with the help of visuals. Depending on the people you’ll be delivering the business summary to, you may wish to tailor distinct document versions for each group. When submitting a business overview to investors, you might highlight the company’s promising future. Lenders, on the other hand, may care more about the company’s long-term viability.

Business Plan Synopsis Example

Company XYZ is a small business looking to expand its operations in the coming year. To do so, they need an effective business plan demonstrating their potential for growth and success. This Business Plan Synopsis Template is designed to help Company XYZ create a comprehensive summary of its proposed plan.

Organizational Overview

This section provides an overview of Company XYZ’s current business operations, mission statement, and goals. It should also contain its management structure, team, and any upcoming changes or proposed new initiatives.

Market Analysis

This section provides a detailed analysis of Company XYZ’s target market and customer base. It includes demographics such as age, gender, income level, geographic area served, and more. In addition, it consists of an overview of the competitive landscape, industry trends, and potential growth opportunities.

Customer Segmentation

This section outlines the different customer segments that Company XYZ is targeting with its products and services. It includes detailed profiles of each customer segment and how Company XYZ plans to reach them.

Competitive Analysis

This section analyzes the competition in Company XYZ’s target market. It includes an overview of the competitive landscape, Company XYZ’s competitive advantages and disadvantages, and potential strategies for gaining an edge.

Product and Service Offerings

This section outlines the different products or services that Company XYZ plans to offer. It provides a detailed description of each offering, pricing, and any additional features.

Marketing Strategies

This section outlines Company XYZ’s strategies to reach its target customers. It includes detailed descriptions of online and offline marketing efforts, such as direct mail campaigns, email campaigns, social media campaigns, and advertising campaigns.

Financial Projections & Metrics

This section provides an overview of Company XYZ’s expected financial performance. It includes projected income statements, balance sheets, cash flow statements, and key metrics (e.g., customer acquisition costs). Also, include any additional information needed to understand the company’s financial position.

Risk Management

This section outlines the risks associated with Company XYZ’s proposed business plan. It includes a detailed assessment of the risks and how to mitigate them. Also, include a contingency plan if one or more of these risks occur. Company XYZ will be better equipped to make decisions by completing this Business Plan Synopsis Template. This template can also be used as a reference when providing updates or presenting the plan to potential investors.

A business plan synopsis is a document that summarizes the fundamentals and critical features of a business . If you want to create your business plan synopsis, our business plan synopsis example is a great way to start!

Abir Ghenaiet

Abir is a data analyst and researcher. Among her interests are artificial intelligence, machine learning, and natural language processing. As a humanitarian and educator, she actively supports women in tech and promotes diversity.

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How to Write a Synopsis of a Business Proposal

The synopsis of a business proposal is also known as the executive summary. It is the introduction and the focal point of your business proposal.

When we analyzed over $1,480,000,000 of closed deals, we found out that people spend 38,2% of their time reading the introduction . Moreover, 27% of the time was spent on the pricing page.

With data showing that clients spend most of their time on your executive summary , it’s only natural to put in more work and find out what provides the best results. Don’t worry, these tips will help you write a synopsis on your own. You can do it without the necessary help from a small business administration.

Complete your business plan

The only way to write a synopsis of a business plan is to write your business plan first . The business plan should provide a description of products or services and an in-depth analysis of your industry. It should also include your company’s sales objectives, and a detailed marketing plan.

It should also have a financial section that lists the current state of your business, as well as projections for the future. The way to make it stand out is by emphasizing the opportunity and execution .

Opportunity is the part of your business plan that includes a solution to the problem you’re solving, as well as answers to the questions of who you plan to sell to and what differentiates you from your competitors. You should include a detailed plan that explains what problems your clients are facing, how that problem is causing them to bleed money, and what you plan on doing to help them.

As you develop your plan, you might ask yourself, " What is the purpose of a business plan? " Essentially, it serves to clarify your vision, outline your strategies, and provide a roadmap for achieving your business goals.

If you’re in the business of creating webshops, you should use social proof and show how your previous clients benefited from the e-commerce site you created. Figuring out the problem your potential clients are facing is a crucial step to finding a viable business solution .

The next step is defining your target market, i.e. who will you be selling to? Depending on your business type, you will either focus on B2B or B2C sales. Once you’ve established that, your target group will come to you naturally.

Target audience vs. actual customers

The trick is to differentiate between your target audience and actual customers . A great example would be children’s toys. They are aimed at kids, but parents are the ones that are buying them.

The same principle can be applied to B2B sales. Your product or service will be used by a number of employees in the company, but they do not equate to the person deciding on the purchase.

If the CEO of the company is responsible for buying all the needed programs their employees are using, then it’s safe to assume that the business owners are buying products they will never use.

The best way to shape your target audience is by conducting market research. You need to conduct a detailed SWOT analysis . That includes figuring out your strengths, weaknesses, opportunities, and threats.

Is there room and need on the market for another company? What will set you apart from your competition?

After you’ve finished that, work on finding out your target audience's age, real-time location , interests, and lifestyle. By working out all of those segments, you will create an airtight buyer persona and have a great foundation for all your future business endeavours.

The next step is execution . This chapter of your business plan should cover how you’re going to make your business work. What kind of a marketing plan do you have in store and what type of activities do you plan on performing in order to achieve your goal?

Your marketing plan should rely on the actual numbers you got from your market research. With the evaluation of the current market , you’ll easily construct a step-by-step marketing plan that will describe your positioning on the market.

All the work you put into your business plan will pay off when creating your executive summary.

Work on your introduction

If you’ve conducted a successful discovery meeting, you’re well on your way. That means that you don’t have to present the history of your company or go into great detail on your business idea. The most important part of your introduction is showing that you understand your client’s problem . You should present their problem through their own words, without embellishing or placing blame.

It is important for your client to understand that you understand their problem and why it needs to be solved. The biggest mistake people make while writing executive summaries is focusing on themselves. This is not a summary of your business, and you should save your social proof and testimonies for later chapters of your proposal.

Write the executive summary with your client in mind. They’re close to making up their mind on choosing to work with you, what your proposal should focus on is answering the question of how . If you want to share your mission statement with them, do so in the later parts of your proposal.

Attach your solution

Express your goal and how you’re going to solve the problem at hand. At this stage of the proposal, you don’t need to present a detailed step-by-step process on how you’re going to resolve their problem. Just show them that you have a plan and throw in a time period in which you'll do the work.

This part of your executive summary is the first new piece of information your client will receive, and it should get them excited about working with you. Make sure to end your executive summary with a CTA that invites your client to read the rest.

Now that you have the majority of your synopsis ready, make sure to tweak it in order to get the best possible results. If you have a custom approach to your proposed solution, make sure to emphasize that. Any elements of your business plan that make you stand out from your competition are a huge plus.

If your company includes a management team, let them read your executive summary before sending it out. This way you’ll not only test your pitch but also gain confidence in your message.

For more tips on the rest of your proposal, make sure to check out our all-encompassing guide on how to write a business proposal .

Is Proposal Writing Difficult?

Is proposal writing difficult? The truth is - it depends. However, writing a proposal can be quite easy if you use these proven tips.

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The Essential Guide to Writing a Business Plan Here's the no-nonsense guide on how to write a business plan that will help you map success for your startup.

By Carolyn Sun

Opinions expressed by Entrepreneur contributors are their own.

President Dwight D. Eisenhower once said, "In preparing for battle I have always found that plans are useless, but planning is indispensable." If you're starting a business, you should have a business plan regardless of whether you're bootstrapping it or looking for outside funding.

The best sorts of business plans tell a clear story of what the company plans to do and how it will do it. Given the high failure rate of startups in their first year, a business plan is also an ideal opportunity to safely test out the feasibility of a business and spot flaws, set aside unrealistic projections and identify and analyze the competition.

A business plan doesn't need to be complicated, but for it to serve its purpose and set you up for success, it must be clear to whomever is reading your plan that you have a realistic handle on the why and how your business will be a success.

To get you moving in the right direction, here's a guide on how to write a business plan.

Overall tips

There's a lot of advice in the infosphere about how to write a business plan, but there's no single correct way. Your approach depends on your industry, who is reading your plan and what the plan is intended for. Are you trying to get funding? Sara Sutton Fell, founder of FlexJobs , a job site for flexible telecommuting jobs, says her business plan was an initiator for more in-depth conversation with potential investors. "A plan does help to see if investors and entrepreneurs are on the same page with general expectations for the business," she says.

A business plan serves many purposes, but there is universal consensus on the following when it comes to your business plan:

Have several versions tailored for specific audiences: "One of the mistakes that inexperienced business owners make is not understanding who they're writing the plan for," says David Ciccarelli, a small business owner who got consultation from his local Small Business Association (SBA) when he was starting his company Voices.com , which connects employers with voiceover talent.

Your plan is a living document: Tim Berry, the founder of a business planning software company Palo Alto Software , took his company from zero to $5 million in sales in its first three years. To do so requires frequent review and close tracking, says Berry, who met with his management team every month to review the plan versus what actually happened -- and then to revise. "There is no virtue to sticking to a plan if it's not useful and responsive to what actually happens," he cautions.

Be realistic about financial estimates and projections: "When you present a plan to bankers and financiers, or even to your employees, people will get way more excited about what's real rather than some huge thing that's never going to happen," says Ciccarelli. So present an achievable sales forecasts based on bottom-upwards information (i.e. how many units per month get sold in how many stores) and stop over projecting profits.

Writing your business plan is about the process and having a blueprint: Your business plan "reflects your ideas, intuitions, instincts and insights about your business and its future," according to Write Your Business Plan (Entrepreneur, 2015). The plan serves as a safe way to test these out before you commit to a course of action. And once you get your business going, the plan also serves as a reference point. "I still print the document," says Ciccarelli. "You're capturing it in time. If you're changing it all the time, you kind of don't remember where you were last year."

Back up any claims: Follow up your projections and assertions with statistics, facts or quotes from a knowledgeable source to lend your plan credibility.

Presentation counts: Reading any long, text-heavy document is hard on the eyes, so format with this in mind. Consider formatting your text pages into two-columns and break up long passages with charts or graphs. Arial, Verdana or Times New Roman are standard industry fonts.

Writing your business plan isn't busy work or a luxury; it's a vital part of the process of starting a business and arms you with information you need to know. So, let's get into what information goes into your business plan.

Related: Bu siness Plans: A Step-by-Step Guide

What goes into a business plan?

A typical business plan is 15 to 25 pages. Its length depends on a variety of factors, such as whether your business is introducing a new product or belongs to a new industry (which requires explanation to the reader), or if you're pitching to bankers, who generally expect to see a traditional written business plan and financials.

"Most equity investors prefer either an executive summary or pitch deck for first contact, but will often request a more detailed plan later in the due diligence process. Potential customers don't need all the details of your internal operation. Your management team needs access to everything," says Akira Hirai, managing director of business plan consulting service Cayenne Consulting .

Most business plans include these seven sections:

1. Executive summary : The executive summary follows the title page and explains the fundamentals of your business. It should provide a short and clear synopsis of your business plan that describes your business concept, financial features and requirements (i.e. cash flow and sales projections plus capital needed), your company's current business position (i.e. its legal form of operation, when the company was formed, principals and key personnel) and any major achievements in the company that are relevant to its success, including patents, prototypes or results from test marketing.

2. Business description : This section typically begins with a brief description of your industry and its outlook. Get into the various markets within the industry, including any new products that will benefit or hurt your business. For those seeking funding, reinforce your data with reliable sources and footnote when possible. Also provide a description of your business operation's structure (i.e. wholesale, retail or service-oriented), who you will sell to, how you will distribute your products/services, the products/services itself (what gives you the competitive edge), your business's legal structure, your principals and what they bring to the organization.

Here are some worksheets from Write Your Business Plan that will help determine your unique selling proposition and analyze your industry.

Click to Enlarge+

3. Market strategies: Here is where you define your target market and how you plan to reach them. Market analysis requires research and familiarity with the market so that the target market can be defined and the company can be positioned (i.e. are you a premium product or a price-competitive product?) in order to garner its market share. Analyze your market in terms of size, structure, growth prospects, trends and sales/growth potential. This section also talks about distribution plans and promotion strategy and tactics that will allow you to fulfill your plans.

Here is a worksheet from Write Your Business Plan that will guide you toward identifying your target market.

4. Competitive analysis: The purpose of the competitive analysis is to determine the strengths and weaknesses of the competitors within your market, strategies that will provide you with a distinct advantage, the barriers that can be developed in order to prevent competition from entering your market, and any weaknesses that can be exploited within the product development cycle. Show why your business will be a success over others.

5. Design and development plan: You will only need this section if you have a product in development, such as an app. The purpose of this section is to provide investors with a description of the product's design, chart its development within the context of production and marketing and show a development budget that will enable the company to reach its goals.

6. Operations and management plan: This section describes how the business functions on a daily basis, its location, equipment, people, processes and surrounding environment. If you have a product that needs to be manufactured, explain the how and where; also, describe your work facility, the personnel, the legal environment (such as licensing, permits, special regulations, etc.), key suppliers and inventory. This section will also highlight the logistics of the organization such as the various responsibilities of the management team and the tasks assigned to each division within the company.

7. Financial factors: Financial data is always at the back of a business plan -- yet it's extremely important. The financial data can include your personal financial statement, startup expenses and capital, your projected cash flow statement and 12-month profit-and-loss statement. PaloAlto's Berry stresses that if you're going after investors, you'll need to show a cash flow statement and a break-even analysis -- or the breakdown to see where your business breaks even.

The best way to prepare for running a business is to have all the components of the plan ready. So if you are are showing a prospective lender your business plan on 10 PowerPoint slides and get asked about something that isn't in the presentation, you can speak knowledgeably and follow up with a more fleshed out plan -- and quickly.

Some business owners hire business plan writing services. Cayenne Consulting's Hirai says that his clients generally fall into one of two categories: those intimidated by the process and those who could write the plan themselves but would prefer to spend their time on other priorities.

If you find yourself intimidated or stuck, you can always write the parts of plan yourself that you understand and hire a consultant or researcher to help with parts that you find confusing.

Or if you're a startup watching every dollar, then tap the free services of the federal Small Business Association (SBA). Every state has a district office . Through the SBA, you can get business plan assistance through its various resource partners, which includes Women's Business Centers , Small Business Development Centers and Service Corps of Retired Executives .

Allow this business plan template for Business Plan for a Startup Business to guide you:

Different types of business plans

Generally, business plans can be divided into four categories :

Working plan: This plan is what you will use to operate your business and is not meant to be admired. This version of your plan is an internal document and will be long on detail, short on presentation. Here, you can omit descriptions that you need not explain to yourself or your team.

Mini plan: The reader may request a mini plan, or a condensed version of your business plan (1-10 pages), which includes most of the same components as in a longer traditional plan -- minus the details and explanation. This includes the business concept, financing needs, marketing plan, financial statements (especially cash flow), income project and balance sheet. This shorter plan is not meant to be a substitute for a full-length plan, but serves as an option to present to potential partners or investors.

Presentation plan: Whether you're using a pitch deck or a written business plan, the information in your presentation plan will be, more or less, the same as in your working plan but worded differently and styled for the eyes of an outsider. The reader of your presentation plan will be someone who is unfamiliar with your business, such as investor or venture capitalist, so lose any jargon or shorthand from your working plan, which only makes sense to you. Also, keep in mind that investors will want to see due diligence on your competition threats and risks as well as financial projections. In addition, looks count, so use the color printer, a nice cover and bindings and the fancy paper stock. Or else, if you're presenting your business plan as a PowerPoint presentation, you can use this business plan presentation template .

What-if plan: This is a contingency plan -- in case your worst case scenario happens, such as market share loss, heavy price competition or defection of a key member of your team. You want to think about what to do in the face of an of these, and if you're trying to get outside funds, having a contingency plan shows that you've considered what to do if things don't go according to plan. You don't necessarily need this, but if you are getting outside funding, then it can strengthen your credibility showing that you have thought about these what-if possibilities. Even if you're not going to get outside funding, shouldn't you be thinking of the what ifs?

If four plans seem like a mountain of work, don't panic. Select two to start off -- a working plan and a mini plan, which will be an abbreviated version of your working plan.

Take several months to write your business plan. Consider it a journey, not a sprint.

Related: The Ultimate Guide to Writing a Business Plan

Carolyn Sun is a freelance writer for Entrepreneur.com. Find out more on Twitter and Facebook .

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How to Write a Business Plan Executive Summary [Sample Template]

A good executive summary is the holy grail of good business plan writing. Even though it comes after you have written and thought through every other facet of your business, it is arguably the most important part of the puzzle. As its name implies, the executive summary is a brief overview of your business plan. Call it an introduction to your business and you would be very right.

The executive summary gives time-crunched executives or VCs that high-level overview that will either persuade them to read your plan further or toss it in a trashcan without a second thought. Even though the executive summary is the first thing that the readers of your business plan will go through, you should write it last because it summarizes everything from that start to the end of your business plan.

Also, it is usually the first and probably the most important thing that busy investors consider before deciding if your business plan is worth spending a minute on. Secondly, since it’s a summary, you will only be highlighting the main facets of what you have uncovered over the course of writing your business plan. Below is a list of what your executive summary should include:

Components of a Business Plan Executive Summary

Business concept (what you do or what you intend to do)
Business goals and vision (what you want to achieve)
Product/service description and differentiation (what you offer and what makes it different)
Target market (who you want to sell to)
Marketing plan (how you plan to reach your customers)
Current financial state (what you currently make in revenue—for existing business looking at expansion, or how much you already have on ground—for startups)
Projected financial state (what you foresee making in revenue)
The request (how much funds you are asking for)
The team (who runs your business)

Your business plan executive summary must provide brief information on the following areas of your business;

The target market : it has to describe the type of customers you will be targeting.
Business model : it should describe your products or services and what will make them appealing to the target market.
Marketing and sales strategy : it should touch briefly your plans for marketing your products or services.
The competition : since competition is a major part of business, so it has to describe how you plan on dealing with the completion and gaining market share. It should equally state your competitive advantage.
Financial analysis : it should summarize your financial plan
Owners/Staff : it should describe the owners and the key staff members and the expertise they bring to the venture.
Implementation plan : it should briefly outline the schedule for taking your business from the planning stage to opening your doors.
An overview of funding requirements : you need to state the amount of funding you need, and what the money would be used for.
Growth highlights : it should give any instances of growth and, if possible, illustrate that growth with graphs or charts.
Future Plans : This doesn’t have to be too detailed, but it should give anyone reading your summary an idea of where your business is heading and how you intend to get there.

Writing a business plan executive summary is not that difficult, you only need to include the summary of the details that were listed above. You executive summary should be arranged this way;

Writing a Business Plan Executive Summary – Sample Template

You can start by describing your company, your mission and vision statements. Include your Business Name and address. If you are lost for words on how to describe your company, think about how you want your employees, customers and the business community to view your company.

This intro paragraph should be attention-getting from the start. It is wise to bring in impressive attributes of your company, but be specific here. Potential investors will want to see real evidence of demonstrated skills and unique abilities. Use this section to highlight company or employee accolades, albeit briefly. Describe the organizational structure and name key employees.

The names and titles of key employees are sufficient; however, include a brief description of executive team members’ responsibilities and duties. Include a list of satellite offices, contact information for each location and how many employees would work in each location.

2. Your business offering

Write a description of what your business aims to offer to its target market. Here, you should give a description of the product or service the business expects to offer. Highlight the products or services in a way that sounds appealing and sets you apart from the competition. The aim of the executive summary is to intrigue the reader enough to read what the rest of the business plan holds.

3. Your finances

This section is where you now talk about the financial aspects of your business. Disclose all business partners, investors and banks you have business relationships with. Explain the role of each entity or individual, the amounts invested or financed, and fiduciary terms and responsibilities.

If you are proposing your business plan to additional lending institutions or investors, this information can strengthen your plan by illustrating confidence others have in your ability to operate a successful business. This section should also include sales and profit projections for the business. You are free to use charts or graphs to reflect this information if it would provide more insight than texts.

Construct the final section of your executive summary by drafting comments about your organization’s accomplishments, accolades or remarkable growth. In this section, briefly describe your plan for achieving your company’s future goals.

Having discussed how an executive plan is written, let’s go further by looking at tips on how to ensure that your executive summary is perfectly written.

8 Tips for Writing a Perfect Business Plan Executive Summary

A. you must ensure that your first paragraph is strong enough.

To attract the reader’s attention and compel them to read the rest of the summary. For example, you can start by stating a market problem that your business promises to fix.

b. Remember, it’s all a summary

So, keep it short. The business plan itself will provide the details. So, don’t waste the reader’s time or irritate them by adding unnecessary details in your executive summary.

c. Use strong and positive language

Don’t weaken or dilute your statements with inappropriate words. For example, instead of writing “Our business might just become the market winner in the next five years”, write “Our business is poised to become the market winner in the next five years.”

d. Although there is no standard page length for executive summaries

It is better to keep it within two pages. Always resist the temptation to stuff your business plan’s executive summary with details that are already covered in the rest of the plan. Remember, the summary is meant to present facts about your business and entice the reader to read the rest of the plan.

e. Fine-tune your executive summary after writing it

Read it aloud to yourself. Does it sound great to you? Does it sound clear and brief, but detailed ? If you are satisfied with it, let someone else who knows nothing about your business read it and give suggestions on how you can improve it.

f. Customize the executive summary for your target audience

If your motive is to entice investors, for instance, your summary should hammer on the benefits that investors stand to gain from the opportunity you are presenting to them. Also, use formal or informal language depending on what’s more appropriate for your target audience.

g. Read the executive summary aloud once again

Putting yourself in place of the reader this time. Does the summary trigger your interest in the business or put you off instantly? Does the summary sound too good to be true, due to the choice of words? After reading it thoroughly, make necessary adjustments.

h. Clear your vocabularies of any self-glorifying superlatives

Clichés, and overused expressions that you may not be able to back up. Avoid words like “ best ”, “ ground-breaking ”, “ cutting-edge ”, “ world class ”, etc. Investors and other readers see those words almost every day and they tend to overlook their real meanings.

In conclusion

When writing your executive summary, even though it comes first, but aim to write it last after you have written the rest of your plan. This is the only way to know what exactly you should include when writing it. You have already done the research, so use that when pulling together the salient points of the executive summary.

Also, ensure that you check, double-check and triple-check your executive summary for any errors. Grammatical and spelling errors should be eradicated. But more importantly, your financial projections should contain absolutely no errors. Just one slight financial error will make you an amateur to any savvy investor.

Again, don’t be afraid to let your passion or excitement for your business come through in your executive summary. Investors typically believe that it takes a certain kind of entrepreneur to make a successful business, so capitalize on your commitment to get the backing you need.

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How to Write an Executive Summary

Folder with a light bulb emerging from it. Represents summarizing your business as an executive summary from a larger document.

9 min. read

Updated December 13, 2023

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An executive summary isn’t just the beginning of your business plan – it’s your opening act, your first chance to impress potential investors, banks, clients and other stakeholders.

An effective executive summary gives decision-makers critical information about your business instantly.

Creating an executive summary is more than just a writing exercise. It requires careful crafting and strategic thinking, as well as an ability to balance the needs to be both succinct and comprehensive.

What is an executive summary?

The executive summary is a brief introduction and summary of your business plan. It introduces your business, the problem you solve, and what you’re asking from your readers. Anyone should be able to understand your business by simply reading this section of your plan.

While structurally it is the first chapter of your plan—you should write it last. Once you know the details of your business inside and out, you will be better prepared to write this section.

Why write an executive summary?

The business plan executive summary provides quick access to critical information from your more detailed business plan.

It is essential for informing anyone outside of your business. Many people—including investors and bankers—will only read your summary. Others will use it to decide if they should read the rest. For you, it is a snapshot of your business to reference when planning or revising your strategy.

Now if you’re writing a business plan solely for internal use you may not need an executive summary. However, some internal plans may necessitate writing an executive summary for assignment—such as for an annual operations plan or a strategic plan .

It takes some effort to do a good summary, so if you don’t have a business use in mind, don’t do it.

How long should it be?

Business plan executive summaries should be as short as possible. Your audience has limited time and attention and they want to quickly get the details of your business plan.

Try to keep your executive summary under two pages if possible, although it can be longer if absolutely necessary. If you have a one-page business plan, you can even use that as your executive summary.

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Executive summary outline

Two pages isn’t a ton of space to capture the full scope of your vision for the business. That means every sentence of your executive summary counts.

You will want to immediately capture the reader’s attention with a compelling introduction. Without getting too lengthy, present who you are as an organization, the problem you are seeking to solve, your skills, and why you are the best entity to solve the problem you’ve outlined.

It’s crucial to establish the need or problem your business is solving in a clear manner, in order to convince your audience that it must be addressed. Following that, recommend the solution and show its value. Be clear and firm in your recommendation, making sure to justify your cause and highlighting key reasons why your organization is the perfect fit for the solution you’re proposing. Finally, a strong conclusion is needed to reiterate the main points and wrap up the executive summary.

What to include in your executive summary

1. business overview.

A one-sentence description that explains what you do, why you do it, and how you do it.

Summarize the problem you’re solving in the market and reference any data that solidifies that there is a need.

3. Solution

Describe your product or service and how it addresses the problem you identified.

4. Target market

Who is your ideal customer? Describe who they are, how they’ll benefit, and why they’re an attainable customer base.

5. Competition

Who are your competitors? List out any primary competition as well as alternatives that your customers may consider. Include key details about their current offerings, promotions, and business strategy.

6. Your team

In your executive summary, outline your organizational structure and current team. List out brief explanations of who you and your team are, your qualifications, and what your function will be within the business. It may be valuable to also highlight any gaps in your team and how you intend to fill them. If you have potential partners or candidates in mind, briefly mention them and expand on their qualifications within your full business plan.

7. Financial summary

Highlight key aspects of your financial plan that address sales, expenses, and profitability. Try to keep these in chart or graph form to ensure the information is easy to consume and resonates visually.

8. Funding requirements

This section is only necessary if you’re seeking out funding or pitching to investors. Be sure to throw out your financing number and reasoning upfront, rather than hiding it later on in your plan. It helps investors understand your position, what you’re asking for, and how you’ll use it.

9. Milestones and traction

Add initial sales, pre-sales, newsletter sign-ups, or anything else that showcases customer interest. Outline what steps you’ve already taken to launch your business, the milestones you’ve hit, and your goals and milestones for the next month, six months, year, etc.

Executive summary vs introduction

A common mistake some people make when starting an executive summary outline is thinking it performs the same function as the introduction to their business plan. In fact, the two serve different purposes and contain different types of information, even though they are both essential.

As we’ve discussed, the executive summary is a high-level overview of the entire business plan. The introduction, by contrast, dives deeper into your business, providing information about the nature of your business, the history of your company, your mission statement, products or services, and the specific problem that your business solves.

The introduction is more detailed, and usually comes right after the executive summary.

On the other hand, the introduction gives investors or lenders – anyone reading your business plan – a sense of why they should continue reading. Think of it more as the space to tell stakeholders why you are speaking to them. An executive summary can also serve this purpose, but the introduction is meant to speak more directly to your target audience, while an executive summary could give a larger audience a general overview of your business.

Tips for writing an effective executive summary

Here are a few best practices to make writing your executive summary easier, and ultimately more effective.

1. Think of an executive summary as your pitch

The executive summary is like an elevator pitch. You’re selling someone on reading your full plan while quickly summarizing the key points. Readers will expect it to cover certain areas of your business—such as the product, market, and financial highlights, at the very least.

While you need to include what’s necessary, you should also highlight areas that you believe will spark the reader’s interest. Remember, you’re telling the brief but convincing story of your business with this summary. Just be sure that you’re able to back it up with the right details with the rest of your business plan.

2. Write it last

Even though the executive summary is at the beginning of a finished business plan, many experienced entrepreneurs choose to write it after everything else. In theory, this makes it easier to write since all of the information is already written out and just needs to be condensed into a shorter format.

Now, if you’ve started with a one-page plan, this process is even easier. Just use your one-page plan as a starting point and add additional details to any sections that need it. You may even find that no changes are necessary.

3. Keep it short

Ideally, the executive summary is short—usually just a page or two, five at the outside—and highlights the points you’ve made elsewhere in your business plan. Whatever length you land on, just focus on being brief and concise. Keep it as short as you can without missing the essentials.

4. Keep it simple

Form follows function, so don’t overcomplicate or over-explain things. The best executive summaries are a mixture of short text, broken up with bullets and subheadings, and illustrations, such as a bar chart showing financial highlights.

Run through a legibility test after writing your summary. Is it easy to skim through? Are the right pieces of information jumping out? If the answer to either of those questions is no, then work back through and try breaking up information or adjusting the formatting.

5. Create an executive summary outline based on importance and strengths

Organize your executive summary outline so that the most important information appears first. While there are specific components to include, there is no set order of appearance. So, use the order to show emphasis.

Lead with what you want to get the most attention, and add the rest by order of importance. For example, you may start with the problem because that can add drama and urgency that tees up the solution you provide.

Additional resources to write a great executive summary

Need more information and guidance to craft a convincing executive summary? Check out these in-depth resources and templates.

Key mistakes to avoid when writing an executive summary

Here are the critical mistakes you should avoid when writing your executive summary.

How to write your executive summary for specific audiences

The executive summary should tell your audience exactly what your business is, what it does, and why it’s worth their time. Here’s how you can take it a step further and fine-tune it for specific people.

How to develop a mission statement

Learn to put a heart behind the business and create an easy-to-understand narrative by writing a mission statement.

Executive Summary FAQ

What is in an executive summary?

The executive summary of a business plan is a brief introduction and summary of your business strategy, operations, and goals.

What is the purpose of an executive summary?

An executive summary is typically written to convince someone to read your more detailed plan. For investors, it may be the only thing they look at when deciding if they’d like to hear your pitch. Loan officers may review it to determine if your business seems financially sound. And partners, mentors, or anyone else may use it to determine if they want to be involved with your business.

How do you start an executive summary?

While there is no required order for an executive summary, it’s often recommended that you lead with the problem you’re solving or the purpose of your business. This will help frame your intent for the reader, and ideally make them more interested in learning more.

How do you write a good executive summary?

A good executive summary is brief, convincing, and easy to read. Focus on keeping things short and concise, only including necessary information. Be sure to lead and highlight anything that is especially interesting or important about your business. And after writing, spend some time reviewing and reformatting to make your summary as attractive to read as possible.

Tim Berry is the founder and chairman of Palo Alto Software , a co-founder of Borland International, and a recognized expert in business planning. He has an MBA from Stanford and degrees with honors from the University of Oregon and the University of Notre Dame. Today, Tim dedicates most of his time to blogging, teaching and evangelizing for business planning.