If you plan to apply for small business loans or seek funding from investors, it’s important to have an executive summary that makes a solid first impression. Crafting a well-written summary begins with knowing which mistakes to avoid.
Writing Your Executive Summary Before Other Parts of the Business Plan
An executive summary is meant to sum up the main takeaways of the business plan. Focusing on writing an executive summary before you’ve outlined the rest of your business plan can be a mistake if you’re not able to summarize the business accurately. A traditional business plan looks something like this:
Executive summaryCompany descriptionMarket analysisOrganization and managementService and product lineMarketing and salesFunding requestFinancial projectionsAppendix
Although the executive summary is the first thing the reader sees, it should be the last thing you write after you’ve covered all the other sections in detail. This can help ensure you’re including the most important elements in the executive summary.
Making the Executive Summary Too Long
An executive summary should encapsulate all the major points of your business plan in a few paragraphs. A good rule of thumb when writing an executive summary for a business plan is to make it no more than three to five pages. Anything longer than that and your reader may get confused or bored. Allocating one paragraph for each section included in your business plan can help you keep the length under control. Remember, the executive summary is sort of like the highlight reel that you’re using to pique the reader’s interest. You want to hit the high points first and dig into the meatier details later.
Not Engaging the Reader
A good executive summary should capture your reader’s attention and encourage them to continue reading the rest of your business plan. Writing an executive summary that’s dry or lacks a sense of personality can be off-putting to readers. While your business plan executive summary should include some key facts about your business, it doesn’t simply have to be a lot of figures or bland details. Instead, think of it as telling your business’s story in a nutshell. Be selective with your wording and leave out anything unnecessary to the key points you’re trying to make.
How To Write a Good Executive Summary
Writing an executive summary for a business plan shouldn’t be stressful if you know what mistakes to avoid and what to include. Here are some simple tips for writing an effective executive summary:
Write it last: It’s worth repeating that the executive summary should be the last thing you write after you’ve completed the rest of the business plan. Writing the summary last ensures that you have all the information you need to write it comprehensively.Tell your story: Your executive summary is a chance to hook readers, and sharing some of your business story can be a great way to do just that. Just remember to keep the summary on point and avoid unnecessary tangents.Show your passion: It’s OK to show your passion for or belief in your business in the executive summary. In fact, that can be a good thing if it conveys to investors or lenders that you’re committed to making the business a success.Tailor it to your reader: The way you approach a small business lender may be very different from how you approach an investor if you need funding to launch or grow your company. So your executive summary should be written in a way designed to appeal to each type of reader while offering the most pertinent information they want to see. Also, consider the industry you’re in. If you run a retail store, for example, your executive summary and business plan may look different from one for a construction business.Proofread, proofread, proofread: Spelling errors, grammatical errors, and typos can tank even the most well-written executive summary. Before finalizing your business plan, it’s wise to review it thoroughly to look for any mistakes that need to be corrected. You can also ask someone else to copy edit it for you.
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