Professional Documents
Culture Documents
Log in
Mobile Row
START v2 //
Our platform
Pricing
Free trial
Log in
Help center
Resources
// END v2
/.navbar-collapse
Our platform
Resources
Main menu
Our platform
Pricing
Reviews and testimonials
Free trial
Log in
Help center
Main menu
Resources
The executive summary the most important part of your business plan, and perhaps the only one that
will get read so make it perfect!
The executive summary has only one objective : get the investor to read the rest of your business plan.
Ok but how?
Get in the reader's shoes
His inbox is probably full of business plans and he needs to get to the bottom of it.
He is therefore very likely to scan through each business plan in less than 2 minutes and to select only
the most promising projects.
Create your business plan online!Think your business idea could be profitable? Find out how with a
business planStart your free trial nowHow to make your executive summary stand out?
First on the form. Make the text easy to read by using short paragraphs rather than long blocks of text.
And keep it short: 1 (ideal) or 2 (maximum) pages.
Then on the content itself: go straight to the point. Introduce in a couple of paragraphs: the idea, the
team, the market, the potential in terms of profitability, and the funding requirements.
Don't try to cover everything in too many details: keep it high level and the investor will read the rest
of the plan to get the details if he is interested.
The investor (or the banker) will start by checking that the project matches its investment criteria:
the idea and the funding requirements match his investment stage: seed, series A, growth, or LBO
the sector is not over-allocated in its portfolio: investors have diversification criteria imposed by their
investors, banks by their credit committee
The introduction of your executive summary must touch briefly on all of the points above before
covering them in more details in the body of the executive summary.
For example:
www.abc.com an A/B testing solution and generated a turnover of £1m in 2012. The objective of this
business plan is to seek a financing of £20 to grow the
company's market share in the A/B testing market valued at around £2.3bn en 2012. The company is
led by 3 seasoned entrepreneurs and employs 2 other people.
The rest of executive summary must follow a progression. Start with the business description and the
team, then the market and your financial highlights, and finally the funding requirements.
Business description
Try to introduce the company in a couple of sentences (legal structure, location, shareholders and
management team), its activity, and the main milestones to date.
The aim is to build interest from the reader of your plan by showing that you have the right team to
carry this project and some traction around the product. If you have
some skill gaps within the team you need to address this concern by showing how you are going to fill
the gap (recruitment, external advisor).
Customers: who are they? How many are they? What is the estimated value of the market?
Strategy: what is your market positioning? How are you going to access the market?
If you are writing your business plan for a bank, try to reassure by showing that there is a real need for
your product and that you are going to generate revenues quickly.
If your business plan is for an equity investor, you also need to emphasize the market size and
demonstrate that there is the potential to establish a large business.
Financial highlights
Here you need to present your key historical and forecasted financials, along with the main
assumptions underlying your forecast.
Which figure should I mention? This really depends on both your sector and stage. As a minimum, try
to show:
That you are growing: your revenues, EBITDA, and operating cash flow are growing regularly
Depending on your sector you might also want to include a few Key Performance Indicators (KPIs). For
example the number of active users for a software company.
Need
Finish the executive summary by stating the funding requirements and the use of proceeds. If needed,
detail the offer (% of equity on offer, the ideal length of the loan, etc.).
If you are trying to raise equity and already received binding offers from a few investors, mention it
here as this will reinforce the attractiveness of your project.
That's it, now you know how to write a great executive summary! Don't hesitate to share your
thoughts or questions using the comment box below.
You can also check out our blog post regarding your business plan's conclusion.
TAM SAM SOM - what it means and why does it mattersHow investors analyse business plansFree
business plan template
Tips to write a business plan for investorsFeel free to share this post with a friend!
2.2k
Shares
59
16
2
CTA
It's easy to create a professional business plan with The Business Plan Shop
Want to find out more before you try? Learn more about our solution here
Create a convincing business plan
Assess the profitability of your business idea and create a persuasive business plan to pitch
to investors
200,000+ entrepreneurs have already tried our solution - why not join them?
Not ready to try our on-line tool ? Learn more about our solution here
Business plan
Our Platform
Free Trial
Pricing
Log in
Help center
Resources
About
Language
English | Français
function setLocaleReqAtt(event,_url,_newLoc){
event.preventDefault();
date.setTime(date.getTime() + (1 * 24 * 60 * 60 * 1000));
if(window.location.hostname != 'localhost'){
}else{
}
window.location.href = _url;
return false;
};
function getEnglishLocale(){
var pref=Cookies.get('tbps.eng_loc_pref');
if(pref){
return pref;
}else{
return "en_GB";
Follow Us
Copyright © 2013 - 2022 The Business Plan Shop Ltd. All rights reserved.
Mobile bottom CTAs //
BP templates
Our platform
Free trial
Want to find out more before you try? Learn more about our solution here
Close