What should go into an executive summary

Valuation, in this context, is controversial. Valuation is what you say your company is worth, a number that determines how much ownership you give away for investment. Too many founders think investors just want them to be successful, when in fact that means very little without an eventual exit. You want to make your prospective investor want to keep reading; convince them to invest in your startup.

But do understand that the persuasion is in the facts, not in the wording. What keeps them interested is the content of the summary, not the tone. Facts that prove traction, potential market, or startup experience are infinitely more powerful than mere assertions of excellence. If you say that your startup is disruptive, or game-changing, or the next Facebook or whatever, you lose.

Instead, show that with facts and let the investors say it, not you. To get bankers to read on, the executive summary has to cover the six main points suggested in the beginning of this article, plus a few selected other points that highlight stability, assets on the balance sheet, and financial history, showing that the loan is not risky.

So what works for the executive summary for bankers is quite different from what works for the summary for investors. Where investors want to see management team startup experience, bankers want to see the personal net worth of business owners. The more collateral, savings or other investment you have available, the more likely you are to secure the loan. Where investors want to see future potential growth, bankers want to see past financial history and bankable assets.

Try to have every piece of financial information about yourself, current investors and any past businesses available upfront. Where investors want to look at possible exits, bankers want their commercial borrowers to offer future stability. In the U. Like traditional bank loans, SBA loans require a solid traditional business plan that includes a good executive summary covering the five main points suggested in the first list above. It will still benefit you to have the financial stability elements laid out as you would for a bank, but the limitations may be less strict and provide more room for riskier businesses to gain funding.

Here are a few to keep in mind as you get started:. Think of an executive summary as being a lot like an elevator pitch , but with constraints.

Readers expect it to cover your business, product, market, and financial highlights, at the very least see below for more detail on this. But your readers expect the key points covered. Be brief and concise. I know experts who recommend a single page, just a page or two, no more than five, and sometimes even longer. I say less is more.

Keep it as short as you can without missing any essentials. Most executive summaries are short texts, often with bullets, broken into subheadings. Illustrations such as a picture of a product, or a bar chart showing financial highlights, are usually a welcome addition. Organize your executive summary so that the most important information appears first.

There is no set order of appearance of the different key items included, quite the contrary, in fact— so use the order to show emphasis. Lead with what you want to get the most attention, and follow with items in the order of importance. I tend to like summaries that start with stating a problem because that can add drama and urgency that tees up the solution in your business. It might be a short document, often attached to an email, or simply a summary in an email.

You can also use it again to fill in startup profiles on investment platforms such as Gust and AngelList or to apply for an incubator or a business plan competition. Hopefully, this article has alleviated some of the overwhelming feelings that come with getting the ball rolling. We use cookies to track how our visitors are browsing and engaging with our website in order to understand and improve the user experience.

Review our Privacy Policy to learn more. What is an Executive Summary? As such, an executive summary quickly becomes the most important element of any business plan. Executive summaries should include the following components: An explanation of why the research was performed The results that the research yielded Proposed suggestions for how management or leadership should best alter strategies based on the findings of research Writing an executive summary can be a daunting task.

Make sure your executive summary can stand on its own. Think of an executive summary as a more condensed version of your business plan. Include supporting research. Boil it down as much as possible. Start with a BANG. Keep things positive. The Five-Paragraph Formula for an Effective Executive Summary An effective executive summary can be broken down into five key paragraphs.

Paragraph 1: Provide an overview of your business. Paragraph 2: Discuss target market, competition, and marketing strategy. Paragraph 3: Provide an overview of operational highlights. Paragraph 4: Show forecasting. Paragraph 5: Detail your investment needs. Get started with Alchemer today. Start making smarter decisions Contact sales Start a free trial. Contact Sales.

These are all key messages for an effective executive summary. It should also attract them to read the entire document to understand even the minute details. Key takeaway: An executive summary should include your objective, market analysis, products and services, competitive analysis, financials, and implementation details.

Your executive summary will be unique to your organization and business plan, but there are a few general steps every entrepreneur and business owner can take when writing their executive summary for the first time.

You should also avoid a few things when writing an executive summary. For example, Kimbarovsky said to avoid talking about your general qualities that all entrepreneurs share, like "your team's passion for hard work.

You should also stay away from comparisons to other businesses in your executive summary. Instead, focus on providing the actual facts that you believe prove you have a strong company. It's better if the investor gives you this accolade because they see the opportunity.

Key takeaway: Write an engaging and concise executive summary after writing your business plan, and then seek outside assistance to edit, organize and ensure it flows smoothly.

If you are writing an executive summary for the first time, there are several online templates that you can use to outline your document. However, your business is unique, and your executive summary should reflect that. An online template probably won't cover every detail that you will need in your specific executive summary.

Experts recommend using templates as a general guideline, and then tailoring them to fit your specific business plan and executive summary. Key takeaway: Many free online templates are available to help you create your executive summary, though you'll need to carefully tailor any template you use to fit your unique business. Skye Schooley.

Learn what to include in your executive summary and how to go about writing one. An executive summary should highlight all the key points of your business plan in less than two pages. Write your business plan before writing your executive summary. If you use an executive summary template, be sure to tailor it to fit with your business plan. This article is for entrepreneurs and startups that are writing a business plan, such as to attract investors, and need to know how to write the executive summary section.

What is an executive summary? What should be included in an executive summary? Although the specifics of your executive summary will vary, Marius Thauland, business strategist at Leiekontor , said that every executive summary should include a few key elements: Objective Target market Products and services Marketing and sales strategies Competitive analysis Funding and budget allocation for the processes and operations Number of employees to be hired and involved How the business plan will be implemented When synthesizing each section, highlight the details that are most relevant to your reader and include the facts and statistics that they will need to know.

How to write an executive summary Your executive summary will be unique to your organization and business plan, but there are a few general steps every entrepreneur and business owner can take when writing their executive summary for the first time.

Write your business plan first. The executive summary will be a summation of the most important topics covered in your business plan, so it is often helpful to write the entire business plan before the executive summary. Make sure your executive summary only covers facts and details that can be found in the business plan.

Write an engaging introduction. What constitutes "engaging" will depend on your audience.