executive summary of the business plan

How to Write an Executive Summary (+ Examples)

• March 21, 2024
• Business Plan , How to Write

The executive summary is the cornerstone of any business plan, serving as a gateway for readers to understand the essence of your proposal.

It summarizes the plan’s key points into a digestible format, making it crucial for capturing the interest of investors, partners, and stakeholders.

In this comprehensive guide, we’ll explore what the executive summary is, why we use it, and also how you can create one for your business plan. Let’s dive in!

What is an Executive Summary?

An executive summary is a concise and compelling overview of a business plan (or simply a report), designed to provide readers, such as investors, partners, or upper management, with a quick and clear understanding of the document’s most critical aspects.

For a business plan, it summarizes the key points including the business overview , market analysis , strategy plan timeline and financial projections.

Typically, the executive summary is the first section of a business plan, but it should be written last to ensure it accurately reflects the content of the entire document.

The primary goal of an executive summary is to engage the reader’s interest and encourage them to read the full document.

It should be succinct, typically no more than one to two pages, and articulate enough to stand on its own, presenting the essence of the business proposal or report without requiring the reader to go through the entire document for basic understanding.

Why Do We Use It?

The executive summary plays a crucial role in whether a business plan opens doors to funding, partnerships, or other opportunities . It’s often the first (and sometimes the only) part of the plan that stakeholders read, making it essential for making a strong, positive first impression. As such, we use it in order to:

• Capture Attention: Given the volume of business plans investors, partners, and lenders might receive, an executive summary’s primary function is to grab the reader’s attention quickly. It highlights the most compelling aspects of the business to encourage further reading.
• Save Time: It provides a succinct overview of the business plan, allowing readers to understand the key points without going through the entire document. This is particularly beneficial for busy stakeholders who need to make informed decisions efficiently.
• Facilitate Understanding: An executive summary distills complex business concepts and strategies into a concise format. Therefore, it makes it easier for readers to grasp the business’s core mission, strategic direction, and potential for success.
• Driving Action: By summarizing the financial projections and funding requirements, an executive summary can effectively communicate the investment opportunity. Indeed the investment opportunity, whether to raise money from investors or a loan from a bank, is the most common reason why we prepare business plans.
• Setting the Tone: The executive summary sets the tone for the entire business plan. A well-written summary indicates a well-thought-out business plan, reflecting the professionalism and competence of the management team.

How to Write an Executive Summary in 4 Simple Steps

Here’s a streamlined approach to crafting an impactful executive summary:

1. Start with Your Business Overview

• Company Name: Begin with the name of your business.
• Location: Provide the location of your business operations.
• Business model: Briefly describe how you make money, the producfs and/or services your business offers.

2. Highlight the Market Opportunity

• Target Market : Identify your target market and its size.
• Market Trends : Highlight the key market trends that justify the need for your product or service.
• Competitive Landscape : Describe how your business is positioned to meet this need effectively.

3. Present Your Management Team

• Team Overview: Introduce the key members of your management team and their roles.
• Experience: Highlight relevant experience and skills that contribute to the business’s success.

4. Include Financial Projections

• Financial Summary: Provide a snapshot of key financial projections, including revenue, profits, and cash flow over the next three to five years.
• Funding Requirements: If seeking investment, specify the amount needed and how it will be used.

2 Executive Summary Examples

Here are 2 examples you can use as an inspiration to create yours. These are taken from our coffee shop and hair salon business plan templates.

Coffee Shop Executive Summary

Hair Salon Executive Summary

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When you’re starting a business, one of the first things you need to do is write a business plan. Your business plan is like a roadmap for your business, so you can lay out your goals and a concrete plan for how you’ll reach them.

Not only is a business plan essential for any business owner, but it’s also a requirement if you decide to apply for small business funding or find investors. After all, before a bank or individual hands over any money, they’ll want to be sure your company is on solid ground (so they can get their money back).

A business plan consists of several pieces, from an executive summary and market analysis to a financial plan and projections. The executive summary will be the first part of your business plan.

If wondering how to write an executive summary has kept you from completing your business plan, we’re here to help. In this guide, we’ll explain what an executive summary is and provide tips for writing your own so your business plan can start strong.

What is an executive summary?

An executive summary is a short, informative, and easy-to-read opening statement to your business plan. Even though it’s just one to two pages, the executive summary is incredibly important.

An executive summary tells the story of what your business does, why an investor might be interested in giving funds to your business, why their investment will be well-spent, and why you do what you do. An executive summary should be informative, but it should also capture a busy reader’s attention.

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Why write an executive summary?

Anyone you’re sending your executive summary and business plan to is likely busy—very busy. An entire business plan is long, involved, and deals with a lot of numbers.

Someone busy wants to get an understanding of your business, and they want to do it quickly, which is to say not by diving into a complicated, 80-page business plan. That’s where your executive summary comes in.

An executive summary provides just the opportunity to hook someone’s interest, tell them about your business, and offer a clear selling point as to why they should consider investing in your business.

Your executive summary is your chance to sell your business to potential investors and show them your business is worth not only their money but also their time.

What to include in an executive summary

By its nature, an executive summary is short. You must be able to clearly communicate the idea of your business, what sets you apart, and how you plan to grow into a successful enterprise.

The subsequent sections of your business plan will go into more detail, but your executive summary should include the most critical pieces of your business plan—enough to stand on its own, as it’s often the only thing a prospective investor will read. Here’s what your executive summary should include—consider it an executive summary template from which you can model your own.

1. The hook

The first sentence and paragraph of your executive summary determine whether or not the entire executive summary gets read. That’s why the hook or introduction is so important.

In general, a hook is considered anything that will get a reader’s attention. While an executive summary is a formal business document, you do want your hook to make you stand out from the crowd—without wasting time.

Your hook can be sharing something creative about your company, an interesting fact, or just a very well-crafted description of your business. It’s crucial to craft your hook with the personality of your reader in mind. Give them something that will make your company stand out and be memorable among a sea of other business plans.

Grab their attention in the first paragraph, and you’re much more likely to get your executive summary read, which could lead to an investment.

2. Company description summary

Now that you’ve hooked your reader, it’s time to get into some general information about your business. If an investor is going to give you money, after all, they first need to understand what your company does or what product you sell and who is managing the company.

Your company description should include information about your business, such as when it was formed and where you’re located; your products or services; the founders or executive team, including names and specific roles; and any additional details about the management team or style.

3. Market analysis

Your market analysis in the executive summary is a brief description of what the market for your business looks like. You want to show that you have done your research and proven that there is a need for your specific product or services. Some questions you should answer:

Who are your competitors?

Is there a demand for your products or services?

What advantages do you have that make your business unique in comparison to others?

To reiterate, stick to the highlights of your market analysis in your executive summary. You’ll provide a complete analysis in a separate section of your business plan, but you should be able to communicate enough in the executive summary that a potential investor can gauge whether your business has potential.

4. Products and services

Now that you’ve established a need in the market, it’s time to show just how your business will fill it. This section of your executive summary is all about highlighting the product or service that your company offers. Talk about your current sales, the growth you’ve seen so far, and any other highlights that are a selling point for your company.

This is also a good time to identify what sets your business apart and gives you a competitive advantage. After all, it’s unlikely that your business is the first of its kind. Highlight what you do better than the competition and why potential customers will choose your product or service over the other options on the market.

5. Financial information and projections

In this section of your executive summary, you want to give the reader an overview of your current business financials. Again, you’ll go more in-depth into this section later in your business plan, so just provide some highlights. Include your current sales and profits (if you have any), as well as what funding you’re hoping to acquire and how this will affect your financials in the next few years.

This is also where you can explain what funding, if any, you’ve received in the past. If you paid back your loan on time, this is an especially bright selling point for potential lenders.

6. Future plans

While asking for what funding you need is essential, you’ve also got to make clear what you’re going to use that funding for. If you’re asking for money, you want the person to know you have a plan to put those funds to good use.

Are you hoping to open another location, expand your product line, invest in your marketing efforts? This final section of your executive summary should detail where you want your business to go in the future, as well as drive home how funding can help you get there.

Tips for writing an executive summary

Even if you include each part of a good executive summary, you might not get noticed. What is written can be just as important as how it’s written. An executive summary has to strike a delicate balance between formal, personable, confident, and humble.

1. Be concise

An executive summary should include everything that’s in your business plan, just in a much shorter format. Writing a concise executive summary is no easy task and will require many revisions to get to the final draft. And while this is the first section of your executive summary, you’ll want to write it last, after you’ve put together all the other elements.

To choose your most important points and what should be included in the executive summary, go through your business plan, and pull out single-line bullet points. Go back through those bullet points and eliminate everything unnecessary to understanding your business.

Once you have your list of bullet points narrowed down, you can start writing your executive summary. Once it’s written, go back in and remove any unnecessary information. Remember, you should only be including the highlights—you have the rest of your business plan to go into more detail. The shorter and clearer your executive summary is, the more likely someone is to read it.

2. Use bullet points

One simple way to make your executive summary more readable is to use bullet points. If someone is reading quickly or skimming your executive summary, extra whitespace can make the content faster and easier to read.

Short paragraphs, short sentences, and bullet points all make an executive summary easier to skim—which is likely what the reader is doing. If important numbers and convincing stats jump out at the reader, they’re more likely to keep reading.

3. Speak to your audience

When writing your executive summary, be sure to think about who will be reading it; that’s who you’re speaking to. If you can personalize your executive summary to the personality and interests of the person who will read it, you’re more likely to capture their attention.

Personalizing might come in the form of a name in the salutation, sharing details in a specific way you know that person likes and the tone of your writing. An executive summary deals with business, so it will generally have a formal tone. But, different industries may be comfortable with some creativity of language or using shorthand to refer to certain ideas.

Know who you’re speaking to and use the right tone to speak to them. That might be formal and deferential, expert and clipped, informal and personable, or any other appropriate tone. This may also involve writing different versions of your executive summary for different audiences.

4. Play to your strengths

One of the best ways to catch the attention of your reader is to share why your business is unique. What makes your business unique is also what makes your business strong, which can capture a reader’s interest and show them why your business is worth investing in. Be sure to highlight these strengths from the start of your executive summary.

5. Get a test reader

Once you’ve written and edited your executive summary, you need a test reader. While someone in your industry or another business owner can be a great resource, you should also consider finding a test reader with limited knowledge of your business and industry. Your executive summary should be so clear that anyone can understand it, so having a variety of test readers can help identify any confusing language.

If you don’t have access to a test reader, consider using tools such as Hemingway App and Grammarly to ensure you’ve written something that’s easy to read and uses proper grammar.

How long should an executive summary be?

There’s no firm rule on how long an executive summary should be, as it depends on the length of your business plan and the depth of understanding needed by the reader to fully grasp your ask.

That being said, it should be as short and concise as you can get it. In general, an executive summary should be one to two pages in length.

You can fudge the length slightly by adjusting the margin and font size, but don’t forget readability is just as important as length. You want to leave plenty of white space and have a large enough font that the reader is comfortable while reading your executive summary. If your executive summary is hard to read, it’s less likely your reader will take the time to read your business plan.

What to avoid in an executive summary

While the rules for writing a stellar executive summary can be fuzzy, there are a few clear rules for what to avoid in your executive summary.

Your executive summary should avoid:

Focusing on investment. Instead, focus on getting the reader to be interested enough to continue and read your business plan or at least schedule a meeting with you.

Clichés, superlatives, and claims that aren’t backed up by fact. Your executive summary isn’t marketing material. It should be straightforward and clear.

Avoiding the executive summary no-nos is just as important as striking the right tone and getting in the necessary information for your reader.

The bottom line

While an executive summary is short, it’s challenging to write. Your executive summary condenses your entire introduction, business description, business plan, market analysis, financial projections, and ask into one to two pages. Condensing information down to its most essential form takes time and many drafts. When you’re putting together your business plan’s executive summary, be sure to give yourself plenty of time to write it and to seek the help of friends or colleagues for editing it to perfection.

However, some tools make crafting a business plan, including your executive summary, a simpler process. A business plan template is a great place to start, and business plan software can especially help with the design of your business plan. After all, a well-written executive summary can make all the difference in obtaining funding for your business, so you’ll want all the help you can get.

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

How to Write an Executive Summary

9 min. read

Updated December 13, 2023

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.

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• Writing tips
• Additional resources

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How to Write a Business Plan Executive Summary (Example Included!)

How do you turn your brilliant business idea into a reality? You've done your homework and know that to get investors or partners, you need a business plan . But more than that, you want to really stand out and make a strong first impression—and that's where the business plan executive summary steps in.

This key section gives a quick snapshot of your entire business strategy, and is designed to catch the interest of potential investors, stakeholders, or partners. It can be the difference between landing that dream deal or getting lost in the slush pile.

So, what's better than a business plan executive summary example to point you in the right direction? Below, you'll find a great one—plus tips on what to include, what to avoid, and how to craft yours.

What is a business plan executive summary?

A business plan executive summary is a condensed overview of the key elements of your business plan. It introduces your business, what you offer (products or services), your target market, and what sets you apart from the competition. It also outlines your financial projections and funding needs (if applicable) and gives a clear picture of your company description and vision.

Your business plan executive summary could be decisive in several situations:

• Pitching to investors: Investors often make preliminary decisions based on the executive summary. A well-crafted summary can get you a meeting and a chance to present your full business plan.
• Summarizing for stakeholders: Stakeholders need to quickly understand your business's direction and key strategies. An executive summary gives them a concise update.
• Business competitions: In many business plan competitions, judges rely on the executive summary to decide which plans move to the next round.

Now that you understand the importance of an executive summary in a business plan, let’s see the key components that make up a winning one.

What should an executive summary include in a business plan

Crafting an effective executive summary means transforming the most critical elements of your business plan into a clear and compelling story. It's typically positioned at the beginning of the document but is written last to ensure it accurately reflects the entire plan.

Here are the key parts of an executive summary in a business plan:

Mission statement

Your mission statement is the heart of your business; it can grab your audience's attention and clarify your business’s core values and objectives. Briefly describe your company’s purpose and what you aim to achieve.

Company history and management team

Provide a brief overview of your business’s history, noting key milestones and achievements. Introduce your management team, highlighting their experience and expertise. This section helps build credibility and shows that you have a capable team behind the business.

Products or services

Describe the products or services your business offers, focusing on what makes them unique and how they meet market needs. This part should clearly explain the value your offerings provide.

Target market

Define your target customers, including their demographics, needs, and pain points. Highlight the demand for your products or services and how your business meets this demand. Assess your main competitors, identifying their strengths, weaknesses, and market share.

Competitive edge

Identify what sets your business apart from the competition. This could be unique technology, excellent customer service, a strong brand, patents, or trademarks—anything that really gives you an edge. Emphasize these strengths to show why your business will thrive in the market.

Financial projections

Give a high-level overview of your financial projections, covering revenue, profit margins, and growth expectations. This section should reassure readers about your business’s financial viability and potential for success. Do not forget to include the amount of funding you're seeking and how you'll use it to achieve your goals.

Speaking of funding, you can build your dream business with the help of a high-paying job—browse open jobs on The Muse »

How to write a business plan executive summary: Dos and Don'ts

So, how do you write an executive summary for a business plan? Here's what you should do—and what you should avoid.

• Hook them early: Start with a captivating introduction that grabs the reader's attention. This could be a strong opening statement or an impactful statistic that highlights your most compelling value proposition.
• Write with clarity: Keep your language clear and straightforward. Using jargon or technical terms could confuse your audience.
• Tell a story : People are naturally drawn to stories. Try to frame your business plan executive summary as a narrative that includes challenges and successes.
• Focus on impact: Prioritize the most important information. Remember, it's a summary, not the full story.
• Quantify your success: Use data and metrics whenever you can to back up your claims about market size, growth potential, and financial projections.
• Proofread like a pro: Typos and grammatical errors can leave a negative impression. Double (or triple) check your work before sending it out. Don’t just use spelling and grammar check—actually re-read it to catch any mistakes.
• Showcase your passion: That should be the easy part. Just let your enthusiasm for your business and its mission shine through!
• Bury the lead: Don't wait until the end to share your most important information. Start strong and capture their interest right away.
• Be too vague: Instead, be specific and provide concrete details. Vague statements don’t add value or clarity, so they don't belong in your business executive summary.
• Ignore your audience: Tailor your summary to the needs and interests of your audience. Consider what they need to know and what will capture their interest.
• Overpromise and underdeliver: Be realistic about your projections and timelines. Setting unrealistic expectations can damage your credibility.
• Get bogged down in details: Save the nitty-gritty details for your full business plan. Focus on the key highlights in your executive summary.
• Forget the call to action: Tell your readers what you want them to do next. Do you want them to invest? Partner with you? Clearly outline your desired outcome.
• Write in a vacuum: Get feedback from trusted advisors or mentors before finalizing your summary. Fresh eyes can help spot areas for improvement.

Business plan executive summary example

Wondering how these tips look in action? Here's the business plan summary example you've been looking for.

This one is for a fictitious company—let's call it Econnovate—specializing in renewable energy solutions. Use it as a guide to craft your own business plan executive summary.

Mission and vision statements

Econnovate is revolutionizing the energy landscape with innovative, sustainable solutions that empower businesses and communities to embrace a cleaner future. Our mission is to use the power of renewable energy sources to provide innovative, affordable, and sustainable energy solutions to reduce our reliance on fossil fuels and create a more environmentally conscious world.

Founded in 2021, Econnovate is a team of passionate engineers and environmental enthusiasts dedicated to developing cutting-edge renewable energy technologies. Our team boasts over 50 years of combined industry experience, including experts in technology, marketing, and operations. Headquartered in Denver, CO, we operate with a global mindset, serving clients across diverse industries and geographies.

Our products

Econnovate's flagship product, SolarMax, is a cutting-edge solar panel system that offers 20% more efficiency than conventional panels. Additionally, we provide EcoBattery, a state-of-the-art energy storage solution that maximizes the utility of our solar panels, ensuring energy availability even during non-sunny periods. Our products are designed to be both cost-effective and easy to install, making sustainable energy accessible to a wider audience.

The global renewable energy market is expected to grow at a CAGR of 7.8% over the next decade. Our target market includes environmentally conscious homeowners and businesses seeking sustainable energy solutions. With increasing regulatory support and growing environmental awareness, the demand for our products is poised for substantial growth.

Econnovate’s proprietary solar technology not only increases efficiency but also reduces costs, giving us a significant edge over competitors. We not only provide renewable energy solutions but also adhere to sustainable practices in our own operations. Additionally, our exceptional customer service and strong brand reputation further differentiate us in the marketplace. We also offer comprehensive warranties and maintenance services, ensuring long-term customer satisfaction and loyalty.

We project a 30% annual revenue growth over the next five years, with profitability expected to be achieved by year three. Our robust financial model is based on conservative estimates and thorough market analysis. By year five, we anticipate generating $50 million in annual revenue, with a healthy profit margin of 15%.

We are seeking $2 million in funding to scale our manufacturing capabilities and expand our market reach. This investment will enable Econnovate to double production capacity and increase market share by 15% within two years. The funds will be allocated to enhancing our production facilities, boosting our marketing plan, and expanding our sales team.

1. What is an executive summary in a business plan?

It's a concise summary of the key points of a business plan, highlighting the business’s mission, products or services, market, competitive advantages, financial projections, and funding needs. The goal is to give a quick overview that captures the reader’s interest and encourages them to read the full plan.

2. How long should an executive summary be?

An executive summary is typically one to two pages long. It should provide a concise overview without overwhelming the reader. Focus on the most important aspects of your business plan, making sure each point is clear and impactful.

3. Can I use a template to write an executive summary?

Yes! Templates offer an effective structure and help ensure you cover all essential elements. But don't just fill in the blanks. Tailor the template to fit your business and make it your own. (Feel free to use our example as a guide.)

4. Should an executive summary be written in first person or third person?

An executive summary is typically written in the third person to maintain a professional tone. However, if your business plan is for internal use or a more personal presentation, using the first person can be appropriate. The key is to keep your writing clear and professional at all times.

5. How do I make my executive summary stand out?

To make your executive summary stand out, focus on being clear and compelling. Start with a strong opening statement that grabs attention. Use visual elements like bullet points, headings, and charts to make it easy to read. Highlight your unique selling points and ensure your summary is free of complex jargon and technical language.

Remember, your executive summary is often the first impression of your business, so make it count!

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5 Steps for Writing an Executive Summary

Learn what to include in your executive summary and how to go about writing one.

Table of Contents

Anyone starting a new business must create a business plan that clearly outlines the organization’s details and goals. The executive summary is a crucial element of that business plan.

We’ll explore five steps to writing your business plan’s executive summary, including what to include and avoid. We’ll also point you toward executive summary templates to help you get started. 

What is an executive summary?

New entrepreneurs or business owners typically use a business plan to present their great business idea to potential stakeholders like angel investors . The purpose of the business plan is to attract financing from investors or convince banking executives to get a bank loan for their business . An executive summary is a business plan overview that succinctly highlights its most essential elements. 

It’s not just a general outline; the executive summary might be the only part of your business plan that busy executives and potential investors read. 

“The executive summary of a business plan is designed to capture the reader’s attention and briefly explain your business, the problem you are solving, the target audience, and key financial information,” Ross Kimbarovsky, CEO and founder of Crowdspring, told Business News Daily. “If the executive summary lacks specific information or does not capture the attention of the reader, the rest of the plan might not be read.”

While your executive summary should be engaging and comprehensive, it must also be quick and easy to read. These documents average one to four pages – ideally, under two pages – and should comprise less than 10% of your entire business plan.

How do you write an executive summary?

Your executive summary will be unique to your organization and business plan. However, most entrepreneurs and business owners take the following five steps when creating their executive summary.

• Write your business plan first. The executive summary will briefly cover the most essential topics your business plan covers. For this reason, you should write the entire business plan first, and then create your executive summary. The executive summary should only cover facts and details included in the business plan.
• Write an engaging introduction. What constitutes “engaging” depends on your audience. For example, if you’re in the tech industry, your introduction may include a surprising tech trend or brief story. The introduction must be relevant to your business and capture your audience’s attention. It is also crucial to identify your business plan’s objective and what the reader can expect to find in the document.
• Write the executive summary. Go through your business plan and identify critical points to include in your executive summary. Touch on each business plan key point concisely but comprehensively. You may mention your marketing plan , target audience, company description, management team, and more. Readers should be able to understand your business plan without reading the rest of the document. Ideally, the summary will be engaging enough to convince them to finish the document, but they should be able to understand your basic plan from your summary. (We’ll detail what to include in the executive summary in the next section.)
• Edit and organize your document. Organize your executive summary to flow with your business plan’s contents, placing the most critical components at the beginning. A bulleted list is helpful for drawing attention to your main points. Double-check the document for accuracy and clarity. Remove buzzwords, repetitive information, qualifying words, jargon, passive language and unsupported claims. Verify that your executive summary can act as a standalone document if needed.
• Seek outside assistance. Since most entrepreneurs aren’t writing experts, have a professional writer or editor look over your document to ensure it flows smoothly and covers the points you’re trying to convey.

What should you include in an executive summary?

Your executive summary is based on your business plan and should include details relevant to your reader. For example, if your business plan’s goal is pitching a business idea to potential investors , you should emphasize your financial requirements and how you will use the funding. 

The type of language you use depends on whether your audience consists of generalists or industry experts.

While executive summary specifics will vary by company, Marius Thauland, business strategist at OMD EMEA, says all executive summaries should include a few critical elements:

• Target audience
• 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 you’ll implement the business plan 

When synthesizing each section, highlight the details most relevant to your reader. Include any facts and statistics they must know. In your introduction, present pertinent company information and clearly state the business plan’s objective. To pinpoint key messages for your executive summary, ask yourself the following questions: 

• What do you want the reader to take away from the document? 
• What do you want to happen after they read it? 

“Put yourself in the business plan reader’s shoes, and think about what you would like to know in the report,” Thauland advised. “Get their attention by making it simple and brief yet still professional. It should also attract them to read the entire document to understand even the minute details.”

What should you avoid in an executive summary?

When writing your executive summary, be aware of the following common mistakes: 

• Making your executive summary too long. An executive summary longer than two pages will deter some readers. You’re likely dealing with busy executives, and an overlong stretch of text can overwhelm them.
• Copying and pasting from other executive summary sections. Reusing phrases from other sections and stringing them together without context can seem confusing and sloppy. It’s also off-putting to read the same exact phrase twice within the same document. Instead, summarize your business plan’s central points in new, descriptive language.
• Too many lists and subheadings in your executive summary. After one – and only one – introductory set of bullets, recap your business plan’s main points in paragraph form without subheadings. Concision and clarity are more important for an executive summary than formatting tricks.
• Passive or unclear language in your executive summary. You’re taking the reins of your business, and your executive summary should show that. Use active voice in your writing so everyone knows you’re running the show. Be as clear as possible in your language, leaving no questions about what your business will do and how it will get there.
• Avoid general descriptions in your executive summary. Kimbarovsky said it’s best to avoid generalities in your executive summary. For example, there’s no need to include a line about “your team’s passion for hard work.” This information is a given and will take attention away from your executive summary’s critical details.
• Don’t use comparisons in your executive summary. Kimbarovsky also advises staying away from comparisons to other businesses in your executive summary. “Don’t say you will be the next Facebook, Uber or Amazon,” said Kimbarovsky. “Amateurs make this comparison to try and show how valuable their company could be. 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.”

Executive summary templates and resources

If you’re writing an executive summary for the first time, online templates can help you outline your document. However, your business is unique, and your executive summary should reflect that. An online template probably won’t cover every detail you’ll need in your executive summary. Experts recommend using templates as general guidelines and tailoring them to fit your business plan and executive summary.

To get you started, here are some popular executive summary template resources:

• FormSwift. The FormSwift website lets you create and edit documents and gives you access to over 500 templates. It details what an effective executive summary includes and provides a form builder to help you create your executive summary. Fill out a step-by-step questionnaire and export your finished document via PDF or Word.
• Smartsheet. The Smartsheet cloud-based platform makes planning, managing and reporting on projects easier for teams and organizations. It offers several free downloadable executive summary templates for business plans, startups, proposals, research reports and construction projects.
• Template.net. The Template.net website provides several free business templates, including nine free executive summary templates that vary by project (e.g., business plan, startup, housing program development, proposal or marketing plan). Print out the templates and fill in your relevant details.
• TemplateLab. The TemplateLab website is a one-stop shop for new business owners seeking various downloadable templates for analytics, finance, HR, marketing, operations, project management, and time management. You’ll find over 30 free executive summary templates and examples.
• Vertex42. The Vertex42 website offers Excel templates for executive summaries on budgets, invoices, project management and timesheets, as well as Word templates for legal forms, resumes and letters. This site also provides extensive information on executive summaries and a free executive summary template you can download into Word or Google Docs.

Summing it all up

Your executive summary should preview your business plan in, at most, two pages. Wait until your business plan is complete to write your executive summary, and seek outside help as necessary. A thorough, engaging business plan and executive summary are well worth the time and money you put into them. 

Max Freedman contributed to the reporting and writing in this article. Some source interviews were conducted for a previous version of this article.

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How to Write an Executive Summary Execs Can't Ignore [+ 5 Top Examples]

Published: May 30, 2024

Early in my career, I was intimidated by executive summaries. They sounded so corporate and formal. But, proper name aside, they’re really just the elevator pitch or the TL;DR (too long, didn’t read) of a document.

Writing an executive summary is an important leadership skill, whether you're an entrepreneur creating a business plan or a CEO delivering a quarterly report.

So, let’s sharpen that skill.

What is an Executive Summary?

An executive summary is a brief overview of a longer professional document, like a business plan, proposal, or report. It's commonly at the beginning of a document and aims to grab a reader’s attention while summarizing critical information such as the problem or opportunity being addressed, objectives, key findings, goals, and recommendations.

Ultimately, an executive summary gives readers a concise overview of the most important information in a document, so they don't have to read the entire thing.

Think of it like the SparkNotes of the business world.

Documents that frequently have an executive summary include:

• Business plans
• Research reports
• Project proposals
• Annual reports

How does it differ from other business statements? Let’s compare.

Free Executive Summary Template

Use this executive summary template to provide a summary of your report, business plan, or memo.

• Company & Opportunity
• Industry & Market Analysis
• Management & Operations
• Financial Plan

Download Free

All fields are required.

You're all set!

Click this link to access this resource at any time.

Executive Summary vs. Business Plan

All business plans have an executive summary, but not all executive summaries belong to business plans.

A business plan includes a company overview, short-term and long-term goals, information on your product or service, sales targets, expense budgets, your marketing plan, and even team information

Business plans are very detailed and comprehensive. They can be as short as a dozen pages or as long as 100 pages. The executive summary is the first section of the business plan.

An in-demand CEO or investor might not have the bandwidth to read your full business plan without first understanding your company or goals. That’s where an executive summary comes in handy.

Note: Need help putting together your business plan? We’ve got a template for you.

Executive Summary vs. Mission Statement

Mission statements and executive summaries are typically found in business plans, but they serve different purposes.

A mission statement defines your organization’s purpose, values, and vision. It’s your company’s North Star and communicates your core identity and reason for existence. On the other hand, an executive summary provides a high-level overview of the document.

I also love how we define key terms to help readers understand the rest of the report. This is an excellent example of setting the tone for the rest of your document in an executive summary and making it easier to navigate.

3. ClickUp: Product Update Release Notes

Now, I know this article is about writing an executive summary, but I love ClickUp’s unique approach with its product release notes videos.

This digital report from research firm McKinsey Global Institute features an executive summary titled “At a Glance.”

Here, the organization recaps the key findings from its 56-page research report in six easy-to-skim bullet points.

It’s compelling, easy to digest, and makes it easy to jump into the full report with download links.

5. UN: World Economic Situation and Prospects 2024

Finally, we have a fairly traditional approach to an executive summary from the United Nations (UN) , clocking in at 16 pages.

Now, I know. Sixteen pages seems lengthy, but the full report is just shy of 200 pages.

The executive summary highlights the report’s largest conclusions with headers. Then, it expands on those headers with relevant statistics. It also uses bold font to draw attention to the countries or regions affected (something the reader will likely be most interested in).

The tone and visual design are both formal, which matches the esteem of the United Nations. Overall, this executive summary does an admirable job of making the report's information more approachable.

Make your executive summary memorable.

Make sure your executive summary is strong. Tell your story. Include compelling data and facts. Use easy-to-understand and digest language. If you can, get visual.

An executive summary should be concise, but also memorable. After all, this may be the only part of your proposal, report, or analysis that actually gets read.

Use the guidance above to ensure your executive summary resonates with your audience and opens the door to the opportunities you crave.

Editor's note: This post was originally published in December 2018 and has been updated for comprehensiveness.

Don't forget to share this post!

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• Writing Tips

How to Write an Executive Summary for a Business Plan

3-minute read

• 19th November 2023

An executive summary is the part of a business plan that gives an outline of the main plan. So to write an executive summary, we first need to read the business plan carefully and understand its key points. These key points are what we will condense to form the executive summary. It’s important to ensure that the executive summary can stand alone because plenty of users will read only that and not the main business plan. We could say that the business plan is the original TL;DR (too long; didn’t read)!

But first, let’s take a quick look at what goes into a business plan so we can focus on the sections we need for our executive summary.

What Is a Business Plan?

A business plan is a document that sets out a business’s strategy and the means of achieving it. The business plan usually contains the following sections:

How to Write an Executive Summary

The executive summary covers the same headings as the main business plan but not in so much detail. This is where our editing skills come to the fore!

The following six steps explain how to approach writing the executive summary.

Consider the Audience

Who will be using the summary? The business plan might be issued only to a very specific group of people, in which case, their needs are paramount and specialized. If the business plan is going out on wider release, we need to think about what a general reader will want to know.

Check That It Makes Sense on Its Own

Make sure the summary can be read as a stand-alone document for users who won’t read the whole plan.

Use Formatting Effectively

Make good use of formatting, headings, numbering, and bullets to increase clarity and readability.

Keep It Brief

One page (or around ten percent of the total word count for a large document) is great.

Avoid Jargon

Try to avoid jargon and use straightforward language. Readers of the executive summary might not have business backgrounds (for instance, if they are friend and family investors in a small start-up business).

Find this useful?

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Proofread the Executive Summary

The executive summary will very likely be the first – and perhaps the only – part of the business plan some people will read, and it must be error-free to make a professional impression.

●  Consider the audience .

●  Ensure that the executive summary can stand alone.

●  Use formatting tools to good advantage.

●  Keep it brief.

●  Keep it simple.

●  Proofread it.

If you’d like an expert to proofread your business plan – or any of your writing – get in touch!

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Everything you need to write a killer executive summary for your business plan

What is Executive Summary—and Why Should You Care?

Executive Summary is the first and most important section of a business plan, providing a snapshot of the overall plan with the aim to compel the reader to continue reading the full document by highlighting its most important components and strengths .

Keep reading for insider tips from a professional business writer on how exactly to write a captivating executive summary that will maximize the impact and success of your business plan.

You’ll discover:

• Why: Critical importance of an executive summary
• What: The key elements you need to include
• How: The best structure—length, layout and components

Importance: Why is Executive Summary Important in a Business Plan?

Executive summary is the most important part of a business plan because it is the first and only opportunity to grab readers’ interest as they review this section prior to deciding whether or not to read the rest of the document.

No matter how excellent your business idea, it is the executive summary alone that persuades a reader to spend more time with the plan to find out more about your venture.

Some financiers receive hundreds of business plans every month. Understandably, they do not read them all . Instead, they can tell in a couple of paragraphs if it is something they may be interested in.

The Executive Summary is so important, in fact, that some investors and lenders prefer to receive just the summary and financials before requesting the full business plan. So if you can hook your readers here, they will ask for more.

Similarly, senior decision-makers on many company or bank boards and committees will often read nothing else than an executive summary when approving a decision to back a business.

In other words, your Executive Summary is the  first impression  many readers will get of your business. Make sure it is a great one. Only a  clear ,  concise , and  compelling  summary of your business right up front twill persuade readers to wade through the rest of the plan.

Contents: What Should an Executive Summary for a Business Plan Include?

Executive summary brings the separate parts of a business plan together to sum up what the business is, where it is going, why it will be successful – and why it is worthy of backing . Highlight the most important and impressive facts about the company , management , offering , market , strategy and financials .

When completed, your executive summary will answer these questions for your readers:

• What is your business all about ?
• What are the most compelling qualities?
• Is the business likely to succeed and why?

Executive summary is an introduction to your business, which provides a brief snapshot of your plan as a whole. To that end, concisely highlight the most important concepts and impressive features from each section of your completed plan, addressing the following areas:

Essentially, you should make it crystal clear to the that a compelling market opportunity exists for your product/service and demonstrate that your business is well-positioned to exploit it .

Remember to be brief and concise . Organize the information in a way that gives the best impression of your business to your target reader. Combine related topics if that improves the flow of the document.

If the readers of your executive summary conclude that the above elements exist in your business, they are likely to commit to reading the rest of your business plan.

So, let’s examine each of the key elements in more detail to make the reader excited about the potential of your business plan and interested to read further:

Mission Statement

Answer this question for your readers:

• What is your business on a mission to create and why?

Aim: Convince the reader that your basic business concept makes sense.

Give a concise overview of your business idea, purpose and goals. Summarize why you have created this company and what your business is all about in one or two sentences, but no more than a paragraph.

Products and Services

Answer these questions for your readers:

• What product(s) and/or service(s) does your business provide?
• What problems are you solving for your target customers and how?
• What makes your product/service different and compelling for the customers to buy?

Aim: Demonstrate to the reader that your product/service solves a real problem in the market and that the problem is worth solving.

Briefly describe the products and services your company provides and what problems you solve for your target customers, making the case for why your product will be successful:

Description:

List the products or services your company sells or plans to sell.

Problem & Solution:

Explain the need for the products or services:

• Problem: Summarize the problem your product/service solves and why it is worth solving. In other words, what is it that your customers need and cannot find elsewhere.
• Solution: Summarize how you will solve the problem that your customers face.

Value Proposition:

Outline why your product or service will be valuable to your customers and the advantages that will make it compelling enough for them to purchase.

Market Opportunity

• Who are your (ideal) target customers?
• Is there a real market demand for your product/service?
• What is the size of the market opportunity?

Aim: Convince the reader that large and compelling market demand opportunity exists for your product/service.

List the target market you intend to reach and explain why you chose it:

Target Market:

Provide a brief description of your ideal customers and how do they break down into recognizable types or segments.

Market Analysis:

Indicate that you have done thorough market analysis by providing a summary of your market research results, including:

• How many potential customers are there for your solution (target market)
• What proportion of the market your company can reasonably capture (market share)
• Forecast estimating what the future holds for the industry and market demand

Competitive Advantage

• Who are your competitors?
• How is the market currently divided?
• What advantages does your company have over the competition?

Aim: Convince the reader that your business has a significant competitive edge to succeed in your target market.

This section is where you describe the gap in your target market, how your solution can fill it, and the competitive advantages that will enable you to exploit this market gap.

Hence, include information about your competition and what differentiates your business:

Competitors and Market Distribution:

Who are you up against? What other options do your customers have to address their needs? Indicate the nature of your competition and how the market is currently divided.

Competitive Advantage:

What comparative advantage does your product/service have?

Show your conclusions on your company’s competitive position and why your company will be able to compete successfully. Remember to list any important distinctions, such as patents, major contracts, or letters-of-intent.

Unique Selling Proposition:

What unique selling proposition will help your business succeed?

What makes your solution better for your customers compared to the competition?

Is competition going to get tougher?

Summarize your conclusions on whether competition is going to intensify going forward.

Company Description

Company information:.

• Is the management team capable?
• What are the basic details of your business?
• What is the company’s current stage of development?
• What are some of the milestones you’ve met?

Aim: Convince the reader that your business has the right structure and capable management team in place to succeed.

Your goal is to demonstrate that you are well-positioned to exploit the market opportunity by highlighting the positive factors in your company’s management, structure and history.

Company Details:

Include a short statement that covers the basic company details, such as the company name, when your business was formed, the names of the founders and their roles, number of employees, business location(s), and legal status.

Stage of Development:

State whether your company is a startup or continuing business, when it was founded, how far along the product or service is in its creation, and if you’ve already made sales or started shipping.

Track Record:

• If you are an established business, provide a brief history of the company’s trading activity to date, including financial and market growth highlights.
• If you are just starting a business, you won’t have as much information as an established company. Instead, focus on your experience and background as well as the decisions that led you to start this particular enterprise.

Management:

Briefly describe the bios of the key members of your management team , particularly those of company founders/owners , as well as the key professional advisors .

What do they bring to the table that will position your company well to take advantage of the market opportunity and make the business a success?

Highlight management’s vision and passion , along with the relevant skills , experience , qualifications , subject-matter expertise , business acumen , industry connections and other capabilities as they relate to the venture.

Operations:

Showcase the key operational features that will give the business a competitive edge.

This could include anything from an advantageous location, through innovative manufacturing technology and processes, to preferential supplier and distribution agreements – and anything in between.

Outline the strategy to achieve the company’s goals and continuously strengthen its competitive position.

Next, indicate the keys to success that you intend to use in order to implement that strategy, such as:

• Marketing and Sales: Briefly describe the methods you will utilize to reach your target customers to market your offering and secure sales.
• Operations and Resources: Summarize the most important resources and operational features your company will deploy to implement its strategy.

Address your plans for where you would like to take your business in the future.

Spell out the objectives you have for the company, what you plan to do:

• Where do you expect the business to be in 1 year, 3 years, 5 years ?
• What are some of the key milestones you plan to meet?
• What are your long-term goals ?
• What is your potential exit strategy ?

Make an educated projection for the expected performance of your business, including:

• Sales volume and value
• Cash flow position
• Profitability
• Number of employees
• Number of locations
• Market share
• New products

Financial Forecast

Summarize the expected financial outlook and performance for your business, answering the following questions for your readers:

• How much do you expect to make in the first year of your business?
• What kind of growth do you expect to see in the following years?
• If you do not expect your business to be profitable , do you have a strategic reason for running at a loss?
• What are the key metrics that you need to watch?
• Will your backers (if any) be able to get their money back and when ?
• Are your financial projections realistic ?

In general, it is customary to indicate financial information for years one through three or five , depending on the requirements of the business plan reader. Typically, this includes Year 1 and Year 3 / 5 results; and Year 10 / long-term goals.

However, your readers can find the detail of the projected financials further on in the plan. In this section, only provide the highlights of your forecast and encourage the reader to keep reading to learn more about your company.

Funding Requirements

How will you fund your business to get it started and grow it to the next level?

• Is it already self-sufficient?
• Do you plan to invest your own money?
• Do you seek outside financing?

If the business does not require any outside financing, you can note that here or just remove this section from your plan altogether.

When you are using the business plan for financing purposes, explain how much money is needed, from whom, and how you will utilize it to grow your business, hinting at an exit opportunity:

• Existing Source of Funds: Include information about your current lenders and investors, if any.
• Funding Requirements: Indicate how much money you are seeking, from what sources, and perhaps even under what conditions.
• Use of Funds: Specify how the raised funds will be used.
• Exit Strategy: Hint at how the backers will get their money out, with the expected timing and returns.

Tips: How Do You Write an Executive Summary?

Writing an executive summary is arguably the most fun – and important – part of writing a business plan.

You have already completed all the research, thinking and writing about market demand, competition, strategy, operations and financials.

All that is left to do now is to summarize the key conclusions into a coherent narrative , answering the million-dollar question:

Why is your plan worthy of backing?

Here are 7 tried and tested tips to prepare a compelling summary of your business that will convince the readers to read through the rest of your plan:

Target Audience (Tip #1)

Ask yourself: “Who will be reading my business plan?”

Since the summary is what the reader reads first, and may be the only section read at all, you can significantly improve your chances of a positive reception if you know the answer to that question before you prepare your executive summary.

Remember, your reader is only going to spend a few minutes , or even seconds , on your executive summary. This is especially true if you are targeting busy investors or lenders for whom it is not unusual to review more than 1,000 each year.

Naturally, the readers are going to focus on the issues that interest and concern them most . If you understand their priorities, you will be better able to craft the summary to “push the right buttons”. For example:

• Bankers are likely to look for aspects of your business that minimize risk to make sure the loan is secure and they will get their money back.
• Investors are focused on aspects that maximize the potential of your company scaling significantly and rapidly, because they will receive a share of that success.
• Management may be interested in accessing new markets for the company.

Do your homework to discover the interests and concerns of your most likely business plan recipients, and then write and organize the summary in a way that most appeals to your target audience:

• Place the issues most important to the reader near the top of your summary.
• Order the sections in any way that gives the best impression of your business to your target reader.
• In the text itself, give more emphasis to those aspects that concern your reader most.

If you are not able to identify the specific person who will read your plan, just focus on the general type of a person that is most likely to receive it and their concerns. 

However, it is not a good idea to tailor the executive summary for just one specific person or organization, especially if your plan is likely to end up in the hands multiple and/or unknown recipients.

To be on the safe side, target your summary to address general institutional concerns rather than individual preferences.

Insider Tips: Writing a Winning Executive Summary

Convey your enthusiasm (tip #2).

The Executive Summary enables the readers to quickly understand the highlights of your business and decide whether to commit more of their time to reading the full plan.

To that end, you need to motivate and entice the readers by your own optimism about how well-positioned your business is to exploit a compelling market opportunity, conveyed in a dynamic , positive and confident tone.

Write Executive Summary Last (Tip #3)

Your executive summary will be the last chapter of the business plan that you prepare.

Even though the executive summary always appears first in the completed document, it is usually crafted last after you have had a chance to carefully consider all key aspects of your business throughout the rest of the plan.

The executive summary is the place where you bring all your planning together and sum up the separate parts of your business proposal to provide an overall outline and highlight the strengths of your entire plan.

Therefore, you will find it much easier and faster to come back and produce this section once you have completed the rest of your business plan.

That way, you will have thought through all the elements of your business, work out the details, and be prepared to summarize them. This approach will not only increase the consistency and accuracy of the plan, but also help make it more compelling .

So, if you have not yet finalized the other sections of your plan, proceed to the next section, and return to the executive summary when you have completed the rest of your plan.

Once finished, the executive summary will become “ Chapter 1 ” of your business plan document.

Summarize Highlights (Tip #4)

A good summary contains highlights from all of the subsequent sections of the business plan.

To achieve that, select the key points from each section of your completed plan by summarizing conclusions you have reached in each area. Remember to focus only on the most important and impressive features of your business.

What sets your business apart from the competition? Early on in your summary, showcase your distinguishing qualities and make sure you describe your winning concept in a way that any reader can easily grasp .

Use logical writing to tell a story, freely changing the order of sections and combining related topics if that helps to improve the flow and make a good impression.

Make Each Word Count (Tip #5)

The executive summary provides a brief snapshot of your business, casting a spotlight on the most important facts and concepts from your entire business plan.

As a result, this section should be clear , concise and to the point. Make each word should count.

Avoid Jargon (Tip #6)

In case the summary read by people unfamiliar with your industry, avoid any technical jargon or provide sufficient explanatory notes .

Edit, Edit, … And Edit Some More (Tip #7)

By the time you reach the executive summary, you may be tired from all the planning and writing. However, remember that this really is the most important section of the business plan.

The best investment you can make is to spend sufficient time to perfect the summary, including ruthless editing . There are professional editors who can help you make it flawless.

Design: How Do You Design an Executive Summary?

Looks matter. Your business plan will be well researched, analysed and written, but it must also be well presented. While your plan will ultimately be judged on the quality of your business concept and strategy, you also want to make sure it gives the best first impression possible.

And nowhere is presentation more important than in the executive summary, because for all readers it will be the first page(s) they read – and some will read nothing else.

The key advice here is: Break it Up . Large, dense blocks of text intimidate readers.

Dividing the Summary text with paragraph headings, bullet points and white space makes the information on a page more inviting and appealing:

• Paragraphs: Break up the Summary into paragraphs that roughly mirror the sections of your business plan
• Brief: Keep each topic as brief as possible
• Subheads: Insert informative topic headings at the beginning of each paragraph to help readers’ quick comprehension
• Bullets: Use bullet points to highlight the most compelling information
• Numbers: Use numbers instead of words where appropriate
• Visuals: Include a (small) chart or graph if it helps to clarify an important point
• Spacing: Use white space to break up the text to make the page look less intimidating. Single space text, but leave an extra line of space between paragraphs.

Because you are limited to so few pages, it may seem counterintuitive to give up space for visual considerations, but these effective techniques make your Summary much more accessible to the business plan readers.

The way you prepare and present the executive summary is an indicator of your professionalism. A polished Summary sheds a favourable light on your business. A sloppy one works against you.

Length: How long is an executive summary?

The executive summary in a business plan should be no more than 2-3 pages in length, with 1 page being perfectly acceptable and often preferable. The advantage to the busy business plan reader is that they are able to skim through this short summary in a few seconds and read it in full in less than 5 minutes .

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Business Plan Executive Summary with Example

Written by Dave Lavinsky

Executive Summary of a Business Plan

The Executive Summary is the most important part of your business plan. This is because it’s the first section in your plan, and if it doesn’t excite readers, they won’t continue reviewing it. Importantly, there is a way to ensure your executive summary is compelling and includes the key information readers expect. In this article, you’ll learn how to craft the perfect executive summary for your business plan.

Download our Ultimate Business Plan Template here >

Table of Contents:

What is an executive summary, why do i need an executive summary, how long should an executive summary be for a business plan, how to write an executive summary for a business plan + template, sample executive summary, other helpful resources for writing your business plan.

An executive summary of a business plan gives readers an overview of your business plan and highlights its key points.

The executive summary should start with a brief overview of your business concept. Then it should briefly summarize each section of your business plan: your industry analysis, customer analysis, competitive analysis, marketing plan, operations plan, management team, financial plan and funding needs.

If presented for funding, the executive summary provides the lender or investor a quick snapshot which helps them determine their interest level and if they should continue reading the rest of the business plan.

An effective executive summary is a quick version of your complete business plan. You need to keep it simple and succinct in order to grab the reader’s attention and convince them it’s in their best interest to keep reading.

As mentioned above, your business plan is a detailed document that requires time to read. Capturing the reader’s attention with a concise format that provides an interesting overview of your plan saves them time and indicates which parts of the business plan may be most important to read in detail. This increases the odds that your business plan will be read and your business idea understood. This is why you need a well-written executive summary.

When structuring your executive summary, the first thing to keep in mind is that it should be short and comprehensive. The length of your executive summary should never exceed 3 pages; the ideal length is one or two pages.

Finish Your Business Plan Today!

To write a compelling executive summary, follow the steps below and use our executive summary template as a guide:

State the Problem and/or Business Opportunity

Briefly describe your business idea, provide key information about your company history, conduct market research about your industry, identify the target market or ideal customer, explain your competitive advantage, establish relevant milestones for your business to achieve, develop a financial plan, describe the qualifications of your management team.

To help you get started, you can download our executive summary example business plan pdf here.

Whether you’re a large or small business, your executive summary is the first thing someone reads that forms an opinion of your business. Whether they decide to read your detailed business plan or push it aside depends on how good your executive summary is. We hope your executive summary guide helps you craft an effective and impactful executive summary. That way, readers will be more likely to read your full plan, request an in-person meeting, and give you funding to pursue your business plans.

Looking to get started on your business plan’s executive summary? Take a look at the business plan executive summary example below!

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Shoutmouth.com Executive Summary

Business Overview Launched late last year, Shoutmouth.com is the most comprehensive music news website on the Internet.

Music is one of the most searched and accessed interests on the Internet. Top music artists like Taylor Swift receive over 5 million searches each month. In addition, over 500 music artists each receive over 25,000 searches a month.

However, music fans are largely unsatisfied when it comes to the news and information they seek on the artists they love. This is because most music websites (e.g., RollingStone.com, MTV.com, Billboard.com, etc.) cover only the top eight to ten music stories each day – the stories with mass appeal. This type of generic coverage does not satisfy the needs of serious music fans. Music fans generally listen to many different artists and genres of music. By publishing over 100 music stories each day, Shoutmouth enables these fans to read news on all their favorite artists.

In addition to publishing comprehensive music news on over 1200 music artists, Shoutmouth is a social network that allows fans to meet and communicate with other fans about music, and allows them to:

• Create personal profiles
• Interact with other members
• Provide comments on news stories and music videos
• Submit news stories and videos
• Recommend new music artists to add to the community
• Receive customized news and email alerts on their favorite artists

Success Factors

Shoutmouth is uniquely qualified to succeed due to the following reasons:

• Entrepreneurial track record : Shoutmouth’s CEO and team have helped launch numerous successful ventures.
• Monetization track record : Over the past two years, Shoutmouth’s founders have run one of the most successful online affiliate marketing programs, having sold products to over 500,000 music customers online.
• Key milestones completed : Shoutmouth’s founders have invested $500,000 to-date to staff the company (we currently have an 11-person full-time team), build the core technology, and launch the site. We have succeeded in gaining initial customer traction with 50,000 unique visitors in March, 100,000 unique visitors in April, and 200,000 unique visitors in May.

Unique Investment Metrics

The Shoutmouth investment opportunity is very exciting due to the metrics of the business.

To begin, over the past five years, over twenty social networks have been acquired. The value in these networks is their relationships with large numbers of customers, which allow acquirers to effectively sell to this target audience.

The sales price of these social networks has ranged from $25 to $137 per member. Shoutmouth has the ability to enroll members at less than $1 each, thus providing an extraordinary return on marketing expenditures. In fact, during a recent test, we were able to sign-up 2,000 members to artist-specific Shoutmouth newsletters at a cost of only 43 cents per member.

While we are building Shoutmouth to last, potential acquirers include many types of companies that seek relationships with music fans such as music media/publishing (e.g., MTV, Rolling Stone), ticketing (e.g., Ticketmaster, LiveNation) and digital music sales firms (e.g., iTunes).

Financial Strategy, Needs and Exit Strategy

While Shoutmouth’s technological, marketing and operational infrastructure has been developed, we currently require $3 million to execute on our marketing and technology plan over the next 24 months until we hit profitability.

Shoutmouth will primarily generate revenues from selling advertising space. As technologies evolve that allow us to seamlessly integrate music sampling and purchasing on our site, sales of downloadable music are also expected to become a significant revenue source. To a lesser extent, we may sell other music-related items such as ringtones, concert tickets, and apparel.

Topline projections over the next three years are as follows:

• Contact sales

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How to Write an Executive Summary (Example & Template Included)

Here’s the good news: an executive summary is short. It’s part of a larger document like a business plan, business case or project proposal and, as the name implies, summarizes the longer report.

Here’s the bad news: it’s a critical document that can be challenging to write because an executive summary serves several important purposes. On one hand, executive summaries are used to outline each section of your business plan, an investment proposal or project proposal. On the other hand, they’re used to introduce your business or project to investors and other stakeholders, so they must be persuasive to spark their interest.

What Is an Executive Summary?

An executive summary is a short section of a larger document like a business plan , investment proposal or project proposal. It’s mostly used to give investors and stakeholders a quick overview of important information about a business plan like the company description, market analysis and financial information.

It contains a short statement that addresses the problem or proposal detailed in the attached documents and features background information, a concise analysis and a conclusion. An executive summary is designed to help executives and investors decide whether to go forth with the proposal, making it critically important. Pitch decks are often used along with executive summaries to talk about the benefits and main selling points of a business plan or project.

Unlike an abstract, which is a short overview, an executive summary format is a condensed form of the documents contained in the proposal. Abstracts are more commonly used in academic and research-oriented writing and act as a teaser for the reader to see if they want to read on.

Executive Summary Format & Template

To put all of that information together, here’s the basic format of an executive summary. You can find this same information in our free executive summary template :

• Introduction, be sure to know your audience
• Table of contents in the form of a bulleted list
• Explain the company’s role and identify strengths
• Explain the need, or the problem, and its importance
• Recommend a solution and explain its value
• Justify said solution by explaining how it fits the organization
• A strong conclusion that once more wraps up the importance of the project

You can use it as an executive summary example and add or remove some of its elements to adjust it to your needs. Our sample executive summary has the main elements that you’ll need project executive summary.

How to Write an Executive Summary

The pressure of writing an executive summary comes from the fact that everyone will pay attention to it, as it sits at the top of that heap of documents. It explains all that follows and can make or break your business plan or project plan . The executive summary must know the needs of the potential clients or investors and zero in on them like a laser. Fortunately, we’ll show you how to write and format your executive summary to do just that.

Executive summaries vary depending on the document they’re attached to. You can write an executive summary for a business plan, project proposal, research document, or business case, among other documents and reports. However, when writing an executive summary, there are guidelines to ensure you hit all the bases.

Executive Summary Length

According to the many books that have been written about executive summaries, as well as training courses, seminars and professional speakers, the agreed-upon length for an executive summary format should be about five to 10 percent of the length of the whole report.

Appropriate Language

The language used should be appropriate for the target audience. One of the most important things to know before you write professionally is to understand who you’re addressing. If you’re writing for a group of engineers, the language you’ll use will differ greatly from how you would write to a group of financiers.

That includes more than just the words, but the content and depth of explanation. Remember, it’s a summary, and people will be reading it to quickly and easily pull out the main points.

Pithy Introduction

You also want to capture a reader’s attention immediately in the opening paragraph. Just like a speech often opens with a joke to break the tension and put people at ease, a strong introductory paragraph can pull a reader in and make them want to read on. That doesn’t mean you start with a joke. Stick to your strengths, but remember, most readers only give you a few sentences to win them over before they move on.

Don’t forget to explain who you are as an organization and why you have the skills, personnel and experience to solve the problem raised in the proposal. This doesn’t have to be a lengthy biography, often just your name, address and contact information will do, though you’ll also want to highlight your strengths as they pertain to the business plan or project proposal .

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Executive Summary Template

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Relevant Information

The executive summary shouldn’t stray from the material that follows it. It’s a summary, not a place to bring up new ideas. To do so would be confusing and would jeopardize your whole proposal.

Establish the need or the problem, and convince the target audience that it must be solved. Once that’s set up, it’s important to recommend the solution and show what the value is. Be clear and firm in your recommendation.

Justify your cause. Be sure to note the key reasons why your organization is the perfect fit for the solution you’re proposing. This is the point where you differentiate yourself from competitors, be that due to methodology, testimonials from satisfied clients or whatever else you offer that’s unique. But don’t make this too much about you. Be sure to keep the name of the potential client at the forefront.

Don’t neglect a strong conclusion, where you can wrap things up and once more highlight the main points.

Related: 10 Essential Excel Report Templates

What to Include in an Executive Summary

The content of your executive summary must reflect what’s in the larger document which it is part of. You’ll find many executive summary examples on the web, but to keep things simple, we’ll focus on business plans and project proposals.

Getting everything organized for your executive summary can be challenging. ProjectManager can help you get your thoughts in order and collaborate with your team. Our powerful task management tools make it easy to get everything prioritized and done on time. Try it free today.

How to Write an Executive Summary for a Business Plan

As we’ve learned above, your executive summary must extract the main points of all the sections of your business plan. A business plan is a document that describes all the aspects of a business, such as its business model, products or services, objectives and marketing plan , among other things. They’re commonly used by startups to pitch their ideas to investors.

Here are the most commonly used business plan sections:

• Company description: Provide a brief background of your company, such as when it was established, its mission, vision and core values.
• Products & services: Describe the products or services your company will provide to its customers.
• Organization and management: Explain the legal structure of your business and the members of the top management team.
• SWOT analysis: A SWOT analysis explains the strengths, weaknesses, opportunities and threats of your business. They describe the internal and external factors that impact your business competitiveness.
• Industry & market analysis: This section should provide an overview of the industry and market in which your business will compete.
• Operations: Explain the main aspects of your business operations and what sets it apart from competitors.
• Marketing plan: Your marketing plan describes the various strategies that your business will use to reach its customers and sell products or services.
• Financial planning: Here, you should provide an overview of the financial state of your business. Include income statements, balance sheets and cash flow statements.
• Funding request: If you’re creating your business plan to request funding, make sure to explain what type of funding you need, the timeframe for your funding request and an explanation of how the funds will be used.

We’ve created an executive summary example to help you better understand how this document works when using it, to sum up a business plan.

Executive Summary Example

For this executive summary example, we’ll imagine a company named ABC Clothing, a small business that manufactures eco-friendly clothing products and it’s preparing a business plan to secure funding from new investors.

Company Description We are ABC Clothing, an environmentally-friendly manufacturer of apparel. We’ve developed a unique method of production and sourcing of materials that allows us to create eco-friendly products at a low cost . We have intellectual property for our production processes and materials, which gives us an advantage in the market.

• Mission: Our mission is to use recycled materials and sustainable methods of production to create clothing products that are great for our customers and our planet.
• Vision: Becoming a leader in the apparel industry while generating a positive impact on the environment.

Products & Services We offer high-quality clothing products for men, women and all genders. (Here you should include pictures of your product portfolio to spark the interest of your readers)

Industry & Market Analysis Even though the fashion industry’s year-over-year growth has been affected by pandemics in recent years, the global apparel market is expected to continue growing at a steady pace. In addition, the market share of sustainable apparel has grown year-over-year at a higher pace than the overall fashion industry.

Marketing Plan Our marketing plan relies on the use of digital marketing strategies and online sales, which gives us a competitive advantage over traditional retailers that focus their marketing efforts on brick-and-mortar stores.

Operations Our production plant is able to recycle different types of plastic and cotton waste to turn it into materials that we use to manufacture our products . We’ve partnered with a transportation company that sorts and distributes our products inside the United States efficiently and cost-effectively.

Financial Planning Our business is profitable, as documented in our balance sheet, income statement and cash flow statement. The company doesn’t have any significant debt that might compromise its continuity. These and other financial factors make it a healthy investment.

Funding Request We’re requesting funding for the expansion of our production capacity, which will allow us to increase our production output in order to meet our increasing customer demand, enter new markets, reduce our costs and improve our competitiveness.

If you’d like to see more executive summary examples for your business plan, you can visit the U.S. small business administration website. They have business plans with executive summary examples you can download and use.

Executive summaries are also a great way to outline the elements of a project plan for a project proposal. Let’s learn what those elements are.

How to Write an Executive Summary for a Project Proposal

An executive summary for your project proposal will capture the most important information from your project management plan. Here’s the structure of our executive summary template:

• Introduction: What’s the purpose of your project?
• Company description: Show why you’re the right team to take on the project.
• Need/problem: What is the problem that it’s solving?
• Unique solution: What is your value proposition and what are the main selling points of your project?
• Proof: Evidence, research and feasibility studies that support how your company can solve the issue.
• Resources: Outline the resources needed for the project
• Return on investment/funding request: Explain the profitability of your project and what’s in for the investors.
• Competition/market analysis: What’s your target market? Who are your competitors? How does your company differentiate from them?
• Marketing plan: Create a marketing plan that describes your company’s marketing strategies, sales and partnership plans.
• Budget/financial planning: What’s the budget that you need for your project plan?
• Timeline: What’s the estimated timeline to complete the project?
• Team: Who are the project team members and why are they qualified?
• Conclusions:  What are the project takeaways?

Now that we’ve learned that executive summaries can vary depending on the type of document you’re working on, you’re ready for the next step.

What to Do After Writing an Executive Summary

As with anything you write, you should always start with a draft. The first draft should hit all the marks addressed above but don’t bog yourself down in making the prose perfect. Think of the first draft as an exploratory mission. You’re gathering all the pertinent information.

Next, you want to thoroughly review the document to ensure that nothing important has been left out or missed. Make sure the focus is sharp and clear, and that it speaks directly to your potential client’s needs.

Proofread for Style & Grammar

But don’t neglect the writing. Be sure that you’re not repeating words, falling into cliché or other hallmarks of bad writing. You don’t want to bore the reader to the point that they miss the reason why you’re the organization that can help them succeed.

You’ve checked the content and the prose, but don’t forget the style. You want to write in a way that’s natural and not overly formal, but one that speaks in the manner of your target audience . If they’re a conservative firm, well then, maybe formality is called for. But more and more modern companies have a casual corporate culture, and formal writing could mistakenly cause them to think of you as old and outdated.

The last run should be proofing the copy. That means double-checking to ensure that spelling is correct, and there are no typos or grammatical mistakes. Whoever wrote the executive summary isn’t the best person to edit it, however. They can easily gloss over errors because of their familiarity with the work. Find someone who excels at copy-editing. If you deliver sloppy content, it shows a lack of professionalism that’ll surely color how a reader thinks of your company.

Criticism of Executive Summaries

While we’re advocating for the proper use of an executive summary, it’d be neglectful to avoid mentioning some critiques. The most common is that an executive summary by design is too simple to capture the complexity of a large and complicated project.

It’s true that many executives might only read the summary, and in so doing, miss the nuance of the proposal. That’s a risk. But if the executive summary follows the guidelines stated above, it should give a full picture of the proposal and create interest for the reader to delve deeper into the documents to get the details.

Remember, executive summaries can be written poorly or well. They can fail to focus on results or the solution to the proposal’s problem or do so in a vague, general way that has no impact on the reader. You can do a hundred things wrong, but if you follow the rules, then the onus falls on the reader.

ProjectManager Turns an Executive Summary Into a Project

Your executive summary got the project approved. Now the real work begins. ProjectManager is award-winning project management software that helps you organize tasks, projects and teams. We have everything you need to manage each phase of your project, so you can complete your work on time and under budget.

Work How You Want

Because project managers and teams work differently, our software is flexible. We have multiple project views, such as the kanban board, which visualizes workflow. Managers like the transparency it provides in the production cycle, while teams get to focus only on those tasks they have the capacity to complete. Are you more comfortable with tasks lists or Gantt charts? We have those, too.

Live Tracking for Better Management

To ensure your project meets time and cost expectations, we have features that monitor and track progress so you can control any deviations that might occur. Our software is cloud-based, so the data you see on our dashboard is always up to date, helping you make better decisions. Make that executive summary a reality with ProjectManager.

You’ve now researched and written a persuasive executive summary to lead your proposal. You’ve put in the work and the potential client sees that and contracts you for the project. However, if you don’t have a reliable set of project management tools like Gantt charts , kanban boards and project calendars at hand to plan, monitor and report on the work, then all that preparation will be for nothing.

ProjectManager is online project management software that gives you real-time data and a collaborative platform to work efficiently and productively. But don’t take our word for it, take a free 30-day trial.

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• How to write an executive summary, with ...

How to write an executive summary, with examples

The best way to do that is with an executive summary. If you’ve never written an executive summary, this article has all you need to know to plan, write, and share them with your team.

What is an executive summary?

An executive summary is an overview of a document. The length and scope of your executive summary will differ depending on the document it’s summarizing, but in general an executive summary can be anywhere from one to two pages long. In the document, you’ll want to share all of the information your readers and important stakeholders need to know.

Imagine it this way: if your high-level stakeholders were to only read your executive summary, would they have all of the information they need to succeed? If so, your summary has done its job.

You’ll often find executive summaries of:

Business cases

Project proposals

Research documents

Environmental studies

Market surveys

In general, there are four parts to any executive summary:

Start with the problem or need the document is solving.

Outline the recommended solution.

Explain the solution’s value.

Wrap up with a conclusion about the importance of the work.

What is an executive summary in project management?

In project management, an executive summary is a way to bring clarity to cross-functional collaborators, team leadership, and project stakeholders . Think of it like a project’s “ elevator pitch ” for team members who don’t have the time or the need to dive into all of the project’s details.

The main difference between an executive summary in project management and a more traditional executive summary in a business plan is that the former should be created at the beginning of your project—whereas the latter should be created after you’ve written your business plan. For example, to write an executive summary of an environmental study, you would compile a report on the results and findings once your study was over. But for an executive summary in project management, you want to cover what the project is aiming to achieve and why those goals matter.

The same four parts apply to an executive summary in project management:

Start with the problem or need the project is solving.  Why is this project happening? What insight, customer feedback, product plan, or other need caused it to come to life?

Outline the recommended solution, or the project’s objectives.  How is the project going to solve the problem you established in the first part? What are the project goals and objectives?

Explain the solution’s value.  Once you’ve finished your project, what will happen? How will this improve and solve the problem you established in the first part?

Wrap up with a conclusion about the importance of the work.  This is another opportunity to reiterate why the problem is important, and why the project matters. It can also be helpful to reference your audience and how your solution will solve their problem. Finally, include any relevant next steps.

If you’ve never written an executive summary before, you might be curious about where it fits into other project management elements. Here’s how executive summaries stack up:

Executive summary vs. project plan

A  project plan  is a blueprint of the key elements your project will accomplish in order to hit your project goals and objectives. Project plans will include your goals, success metrics, stakeholders and roles, budget, milestones and deliverables, timeline and schedule, and communication plan .

An executive summary is a summary of the most important information in your project plan. Think of the absolutely crucial things your management team needs to know when they land in your project, before they even have a chance to look at the project plan—that’s your executive summary.

Executive summary vs. project overview

Project overviews and executive summaries often have similar elements—they both contain a summary of important project information. However, your project overview should be directly attached to your project. There should be a direct line of sight between your project and your project overview.

While you can include your executive summary in your project depending on what type of  project management tool  you use, it may also be a stand-alone document.

Executive summary vs. project objectives

Your executive summary should contain and expand upon your  project objectives  in the second part ( Outline the recommended solution, or the project’s objectives ). In addition to including your project objectives, your executive summary should also include why achieving your project objectives will add value, as well as provide details about how you’re going to get there.

The benefits of an executive summary

You may be asking: why should I write an executive summary for my project? Isn’t the project plan enough?

Well, like we mentioned earlier, not everyone has the time or need to dive into your project and see, from a glance, what the goals are and why they matter.  Work management tools  like Asana help you capture a lot of crucial information about a project, so you and your team have clarity on who’s doing what by when. Your executive summary is designed less for team members who are actively working on the project and more for stakeholders outside of the project who want quick insight and answers about why your project matters.

An effective executive summary gives stakeholders a big-picture view of the entire project and its important points—without requiring them to dive into all the details. Then, if they want more information, they can access the project plan or navigate through tasks in your work management tool.

How to write a great executive summary, with examples

Every executive summary has four parts. In order to write a great executive summary, follow this template. Then once you’ve written your executive summary, read it again to make sure it includes all of the key information your stakeholders need to know.

1. Start with the problem or need the project is solving

At the beginning of your executive summary, start by explaining why this document (and the project it represents) matter. Take some time to outline what the problem is, including any research or customer feedback you’ve gotten . Clarify how this problem is important and relevant to your customers, and why solving it matters.

For example, let’s imagine you work for a watch manufacturing company. Your project is to devise a simpler, cheaper watch that still appeals to luxury buyers while also targeting a new bracket of customers.

Example executive summary:

In recent customer feedback sessions, 52% of customers have expressed a need for a simpler and cheaper version of our product. In surveys of customers who have chosen competitor watches, price is mentioned 87% of the time. To best serve our existing customers, and to branch into new markets, we need to develop a series of watches that we can sell at an appropriate price point for this market.

2. Outline the recommended solution, or the project’s objectives

Now that you’ve outlined the problem, explain what your solution is. Unlike an abstract or outline, you should be  prescriptive  in your solution—that is to say, you should work to convince your readers that your solution is the right one. This is less of a brainstorming section and more of a place to support your recommended solution.

Because you’re creating your executive summary at the beginning of your project, it’s ok if you don’t have all of your deliverables and milestones mapped out. But this is your chance to describe, in broad strokes, what will happen during the project. If you need help formulating a high-level overview of your project’s main deliverables and timeline, consider creating a  project roadmap  before diving into your executive summary.

Continuing our example executive summary:

Our new watch series will begin at 20% cheaper than our current cheapest option, with the potential for 40%+ cheaper options depending on material and movement. In order to offer these prices, we will do the following:

Offer watches in new materials, including potentially silicone or wood

Use high-quality quartz movement instead of in-house automatic movement

Introduce customizable band options, with a focus on choice and flexibility over traditional luxury

Note that every watch will still be rigorously quality controlled in order to maintain the same world-class speed and precision of our current offerings.

3. Explain the solution’s value

At this point, you begin to get into more details about how your solution will impact and improve upon the problem you outlined in the beginning. What, if any, results do you expect? This is the section to include any relevant financial information, project risks, or potential benefits. You should also relate this project back to your company goals or  OKRs . How does this work map to your company objectives?

With new offerings that are between 20% and 40% cheaper than our current cheapest option, we expect to be able to break into the casual watch market, while still supporting our luxury brand. That will help us hit FY22’s Objective 3: Expanding the brand. These new offerings have the potential to bring in upwards of three million dollars in profits annually, which will help us hit FY22’s Objective 1: 7 million dollars in annual profit.

Early customer feedback sessions indicate that cheaper options will not impact the value or prestige of the luxury brand, though this is a risk that should be factored in during design. In order to mitigate that risk, the product marketing team will begin working on their go-to-market strategy six months before the launch.

4. Wrap up with a conclusion about the importance of the work

Now that you’ve shared all of this important information with executive stakeholders, this final section is your chance to guide their understanding of the impact and importance of this work on the organization. What, if anything, should they take away from your executive summary?

To round out our example executive summary:

Cheaper and varied offerings not only allow us to break into a new market—it will also expand our brand in a positive way. With the attention from these new offerings, plus the anticipated demand for cheaper watches, we expect to increase market share by 2% annually. For more information, read our  go-to-market strategy  and  customer feedback documentation .

Example of an executive summary

When you put it all together, this is what your executive summary might look like:

Common mistakes people make when writing executive summaries

You’re not going to become an executive summary-writing pro overnight, and that’s ok. As you get started, use the four-part template provided in this article as a guide. Then, as you continue to hone your executive summary writing skills, here are a few common pitfalls to avoid:

Avoid using jargon

Your executive summary is a document that anyone, from project contributors to executive stakeholders, should be able to read and understand. Remember that you’re much closer to the daily work and individual tasks than your stakeholders will be, so read your executive summary once over to make sure there’s no unnecessary jargon. Where you can, explain the jargon, or skip it all together.

Remember: this isn’t a full report

Your executive summary is just that—a summary. If you find yourself getting into the details of specific tasks, due dates, and attachments, try taking a step back and asking yourself if that information really belongs in your executive summary. Some details are important—you want your summary to be actionable and engaging. But keep in mind that the wealth of information in your project will be captured in your  work management tool , not your executive summary.

Make sure the summary can stand alone

You know this project inside and out, but your stakeholders won’t. Once you’ve written your executive summary, take a second look to make sure the summary can stand on its own. Is there any context your stakeholders need in order to understand the summary? If so, weave it into your executive summary, or consider linking out to it as additional information.

Always proofread

Your executive summary is a living document, and if you miss a typo you can always go back in and fix it. But it never hurts to proofread or send to a colleague for a fresh set of eyes.

In summary: an executive summary is a must-have

Executive summaries are a great way to get everyone up to date and on the same page about your project. If you have a lot of project stakeholders who need quick insight into what the project is solving and why it matters, an executive summary is the perfect way to give them the information they need.

For more tips about how to connect high-level strategy and plans to daily execution, read our article about strategic planning .

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Start » startup, a guide to writing an executive summary for your business plan.

An executive summary should include a concise overview of your business and pique the interest of readers.

The most crucial component of any business plan is the executive summary. It’s usually the first thing investors will read about your business, so it should thoroughly summarize your objectives and pique the reader’s interest in learning more.

Like all first impressions, you rarely get a second chance to make a great one. Here’s what you need to know about writing an executive summary that will leave a lasting impact on your readers.

What information is included in an executive summary?

The specific information you provide in your executive summary will vary depending on your industry, your goals and whether you own a startup or an established business. The summary should be one to two pages in length and sum up the more detailed content in the rest of your business plan, including:

• Who you are. Start with the basics. List your business name, location and contact information. For established businesses, give a brief history of your company and provide your mission statement . Include the names of the owners and the key players in your business, as well as the number of employees you have.
• The business opportunity. Describe the market need or problem for which your business has a solution.
• How you address that opportunity. Explain your business model and how your products or services will satisfy that market need or problem.
• Competition. Provide an overview of your competition and how your products or services differ from theirs.
• Target market. Describe the specific customer base you plan to attract to your business.
• M arketing strategy. Explain how you plan to reach your target market and entice them to your products or services.
• Financial summary. For established businesses, provide a financial summary and state whether you are seeking additional funding or not. For startups, list your financial plan and include your projections for the next few years.

Although it will be the first section of your business plan, most experts recommend writing your executive summary at the end of your drafting process.

How to write an executive summary

Writing an executive summary from scratch is a daunting process. Here are a few tips to help you create a strong executive summary:

• Write it last. Although it will be the first section of your business plan, most experts recommend writing your executive summary at the end of your drafting process. Doing so will ensure that you have all the detailed information you need to refer back to when writing the summary.
• Be brief, yet precise. An executive summary should be just that: a summary. You don’t need to go into great detail here as the business plan itself should provide all the details needed to attract investors, lenders, buyers or new business partners. Be brief and provide a high-level overview of your business plan.
• Know your audience. Just as you tailor a sales pitch to a specific audience, your executive summary should highlight the information your readers will find most interesting and valuable. If you are trying to attract investors or new partners, focus on how your business can be beneficial to their long-term success. If you’re applying for a business loan, focus on your financial reports and show that your business is reliable and that you present minimal risk.

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How to Write an Executive Summary for a Business Plan

Back to Business Plans

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on February 27, 2023 Updated on December 12, 2023

Launching a business involves countless tasks, but a crucial early hurdle is writing a business plan . Many entrepreneurs who aren’t looking for funding think they can skip this step, but that’s never a good idea . 

A sharp business plan is essentially a business owner’s commitment to and preparation for the road ahead, and the executive summary might be the most important part. Investors and lenders usually only read the executive summary, unless it succeeds in grabbing their interest. 

Thus, if you’re looking for financing, an excellent executive summary is absolutely essential. But even if you’re not, writing a strong executive summary can help gather your thoughts and lessons learned. Lucky for you, this guide shows you just how to do it. 

• What is an Executive Summary?

The executive summary opens your business plan, but it’s the section you’ll write last. It summarizes the key points and highlights the most important aspects of your plan. 

Again, often investors and lenders will only read the executive summary; if it doesn’t capture their interest they’ll stop reading, so it must be as compelling as possible, even at two pages or less. 

• What to Include in the Executive Summary

Several key points should be included in the executive summary.

1. The Business Opportunity

What problem are you solving in the market and for whom? Write a few sentences about the opportunity and your target market . This should be at the top of your executive summary after a very brief introduction of your concept and vision. 

2. The Business Idea and Model

Provide specific information about your product or service, how it solves a market problem, and how you’ll sell it. Will it be one-time sales or a subscription? Focus on your product or service as a solution, discussing how it solves the problem and why it’s better than other solutions. 

3. Company History

What have you done to this point? When you’re just getting started, this may be nothing more than coming up with the idea, choosing a business name , and forming a business entity. Highlight milestones you’ve achieved. 

4. Market Summary

Discuss the state of the industry, market size, and projected growth. Include data points with links to sources. Also, touch upon why you chose your target market and the competitive landscape of your market. Don’t go into too much detail, just mention the most intriguing elements.

5. Competitive Advantage

Write a strong statement about how your company is going to stand out in the market – why will customers choose your product over those of competitors? This is extremely important to investors, so take your time on this one after you’ve done your full competitive analysis . 

6. Objectives

Write a short list of specific goals that you plan to achieve in the short term, such as developing your product, launching a marketing campaign, or hiring a key person. 

7. Management team

Provide a summary of your management team, their roles, and the relevant experience that they have to serve in those roles. Don’t be overly self-promotional here; just state the facts in a positive way. 

8. Financial Highlights

Provide a summary of your financial plan including revenue and profit projections (best in bullet form) for at least three years and a break-even analysis in a simple chart form. If you’ve already made some sales, include your revenue numbers.

9. The “Ask”

Your “ask”, if applicable, is what you’re requesting from the investor or lender. You’ll include the amount you’d like and how it will be spent, such as “We are seeking $50,000 in seed funding to develop our beta product”.  

It’s best not to specify the terms of funding you’re requesting, such as stating an equity offer. That will be a matter of negotiation.

10. Other Compelling Points

If there are any other points from your business plan that illustrate how your business will be unique and successful, be sure to include those as well. The executive summary should be as persuasive as possible. 

If you finish your executive summary and it’s more than two pages long, cut it down. Investors and lenders aren’t looking for a long read; they want you to get to the point and to be “wowed” by your vision. That will persuade them to dig into your full plan. 

So take all the time you need to write an excellent summary, then have somebody you trust review it to make sure it delivers. The future of your business could depend on it.

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How to Write An Executive Summary for a Business Plan

It is important to know how to write an executive summary for a business plan, particularly if you expect an outside source to read it. 3 min read updated on February 01, 2023

It is important to know how to write an executive summary for a business plan, particularly if you expect an outside source to read it. This part of your business plan will provide a brief, but thorough overview of the most critical details of your company so that you can attract investors or reach other important goals as an organization.

What is an Executive Summary?

An executive summary can be defined as a short introduction in your business plan. The goal of the executive summary is to highlight the key points of the plan for anyone who reads it, which helps to save time and lets them know what the rest of the business plan will include.

It is essentially an advance organizer. The executive summary can often be considered the most crucial part of a business plan. It will describe a business, which problems it will solve, the target market, and a highlight of the financials.

Every plan will not need a summary. It is crucial for the plans that are written for outsiders. It will take considerable effort to write an excellent summary. If there is no real business use for it, do not write the summary.

There are many jobs that are accomplished by an executive summary . It needs to show readers the answers to their questions by pointing to the section with detailed information about their query. It should also make it easier for anyone who has to read it while making it enjoyable, through the presentation of interesting and useful facts about a company.

What Should an Executive Summary Include?

What needs to be included in an executive summary will largely depend on the business. The summary for a start-up and an established company will vary greatly. For start-ups, the primary goal of the business plan is to get money by convincing banks, venture capitalists, or angel investors to invest in a business by providing equity or debt financing.

To accomplish this, a company will need to present a tight case for a business idea. This is where the executive summary is very important.

An executive summary needs to include the following :

• Who are you? You need to provide the name of your business, its location, and all contact information.
• What do you offer and what problems will your business solve ? You should include a short description of the products and services you provide and why it is needed. The business does not need to solve a huge social problem, but it needs to show why it meets a specific need in the market.
• Who is your target market? You need to describe the type of customer you are trying to reach. Your product can define itself through its name in some cases, such as “Prius dashboard accessory.” If this is not the case, simply provide a short description of who your target customer is.
• What is the purpose of your business plan? You need to state whether you are trying to get investments or a bank loan. The executive summary is really only needed when you are sharing your plan with outsiders.
• Who is your competition? Talk about your competition and describe the strategies you will implement for getting a share of the market. Name your competitive advantages and how you stand out against the competition.
• How are your finances? You should include a financial analysis to summarize your financial plan. You also need to include all projections for the next three years.
• What is your size and scale? For instance, if you own an existing company, this information can consist of simply adding your most recent sales numbers. For a start-up, it can be a short description of your goals or aspirations for the next one to three years.
• Are there any further critical details? You should mention any important, defining detailed information that will be important to whoever reads your summary. For example, you could include that those who founded the company are all local MBA students or any development grants you have received.

If you need help with writing an executive summary for your business plan, you can post your legal need on UpCounsel’s marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law, and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.

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• Example of a Good Executive Summary for Business Plan
• Business Plan Executive Summary Example Startup
• Creating a Business Plan
• Business Plan Format: Everything you Need to Know
• Management Summary Business Plan Sample
• Business Plan
• Parts of Business Plan and Definition
• Business Description Outline
• Contents of a Business Plan
• Startup Business Plan Presentation Template

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How to Write a Great Business Plan: The Executive Summary

The second in a comprehensive series to help you craft the perfect business plan for your startup..

This article is part of a series on  how to write a great business plan .

The Executive Summary is a brief outline of the company's purpose and goals.

While it can be tough to fit on one or two pages, a good Summary includes:

• A brief description of products and services
• A summary of objectives
• A solid description of the market
• A high-level justification for viability (including a quick look at your competition and your competitive advantage)
• A snapshot of growth potential
• An overview of funding requirements

I know that seems like a lot, and that's why it's so important you get it right. The Executive Summary is often the make-or-break section of your business plan.

A great business solves customer problems; if your Summary cannot clearly describe, in one or two pages, how your business will solve a particular problem and make a profit, then it's very possible the opportunity does not exist--or your plan to take advantage of a genuine opportunity is not well developed.

So think of it as a snapshot of your business plan. Don't try to "hype" your business--focus on helping a busy reader get a great feel for what you plan to do, how you plan to do it, and how you will succeed.

Since a business plan should above all help you start and grow your business, your Executive Summary should first and foremost help you do the following.

1. Refine and tighten your concept.

Think of it as a written "elevator pitch" (with more detail, of course). Your Summary describes the highlights of your plan, includes only the most critical points, and leaves out less important issues and factors.

As you develop your Summary you will naturally focus on the issues that contribute most to potential success. If your concept is too fuzzy, too broad, or too complicated, go back and start again. Most great businesses can be described in several sentences, not several pages.

2. Determine your priorities.

Your business plan walks the reader through your plan. What ranks high in terms of importance? Product development? Research? Acquiring the right location? Creating strategic partnerships?

Your Summary can serve as a guide to writing the rest of your plan.

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3. make the rest of the process easy..

Once your Summary is complete, you can use it as an outline for the rest of your plan. Simply flesh out the highlights with more detail.

Then work to accomplish your secondary objective by focusing on your readers. Even though you may be creating a business plan solely for your own purposes, at some point you may decide to seek financing or to bring on other investors, so make sure your Summary meets their needs as well. Work hard to set the stage for the rest of the plan. Let your excitement for your idea and your business shine through.

In short, make readers want to turn the page and keep reading. Just make sure your sizzle meets your steak by providing clear, factual descriptions.

How? The following is how an Executive Summary for a bicycle rental store might read.

Introduction

Blue Mountain Cycle Rentals will offer road and mountain bike rentals in a strategic location directly adjacent to an entrance to the George Washington National Forest. Our primary strategy is to develop Blue Mountain Cycle Rentals as the most convenient and cost-effective rental alternative for the thousands of visitors who flock to the area each year.

Once underway we will expand our scope and take advantage of high-margin new equipment sales and leverage our existing labor force to sell and service those products. Within three years we intend to create the area's premier destination for cycling enthusiasts.

Company and Management

Blue Mountain Cycle Rentals will be located at 321 Mountain Drive, a location providing extremely high visibility as well as direct entry and exit from a primary national park access road. The owner of the company, Marty Cycle, has over twenty years experience in the bicycle business, having served as a product manager for ACME Cycles as well as the general manager of Epic Cycling.

Because of his extensive industry contacts, initial equipment inventory will be purchased at significant discounts from OEM suppliers as well by sourcing excess inventory from shops around the country.

Due to the somewhat seasonal nature of the business, part-time employees will be hired to handle spikes in demand. Those employees will be attracted through competitive wages as well as discounts products and services.

Market Opportunities

460,000 people visited the George Washington National Forest during the last twelve months. While the outdoor tourism industry as a whole is flat, the park expects its number of visitors to grow over the next few years.

• The economic outlook indicates fewer VA, WV, NC, and MD cycling enthusiasts will travel outside the region
• The park has added a camping and lodging facilities that should attract an increased number of visitors
• The park has opened up additional areas for trail exploration and construction, ensuring a greater number of single-track options and therefore a greater number of visitors

The market potential inherent in those visitors is substantial. According to third-party research data, approximately 30% of all cyclists would prefer to rent rather than transport their own bicycles, especially those who are visiting the area for reasons other than cycling.

Competitive Advantages

The cycling shops located in Harrisonburg, VA, are direct and established competitor. Our two primary competitive advantages will be location and lower costs.

Our location is also a key disadvantage where non-park rentals are concerned. We will overcome that issue by establishing a satellite location in Harrisonburg for enthusiasts who wish to rent bicycles to use in town or on other local trails.

We will also use online tools to better engage customers, allowing them to reserve and pay online as well as create individual profiles regarding sizes, preferences, and special needs.

Financial Projections

Blue Mountain Cycle Rentals expects to earn a modest profit by year two based on projected sales. Our projections are based on the following key assumptions:

• Initial growth will be moderate as we establish awareness in the market
• Initial equipment purchases will stay in service for an average of three to four years; after two years we will begin investing in "new" equipment to replace damaged or obsolete equipment
• Marketing costs will not exceed 14% of sales
• Residual profits will be reinvested in expanding the product and service line

We project first-year revenue of $720,000 and a 10% growth rate for the next two years. Direct cost of sales is projected to average 60% of gross sales, including 50% for the purchase of equipment and 10% for the purchase of ancillary items. Net income is projected to reach $105,000 in year three as sales increase and operations become more efficient.

Keep in mind this is just a made-up example of how your Summary might read. Also keep in mind this example focused on the rental business, so a description of products was not included. (They'll show up later.) If your business will manufacture or sell products, or provide a variety of services, then be sure to include a Products and Services section in your Summary. (In this case the products and services are obvious, so including a specific section would be redundant.)

Bottom line: Provide some sizzle in your Executive Summary... but make sure you show a reasonable look at the steak, too.

Now let's look at another main component in a business plan: your Business Overview and Objectives .

More from this series:

• How to Write a Great Business Plan: Key Concepts
• How to Write a Great Business Plan: the Executive Summary
• How to Write a Great Business Plan: Overview and Objectives
• How to Write a Great Business Plan: Products and Services
• How to Write a Great Business Plan: Market Opportunities
• How to Write a Great Business Plan: Sales and Marketing
• How to Write a Great Business Plan: Competitive Analysis
• How to Write a Great Business Plan: Operations
• How to Write a Great Business Plan: Management Team
• How to Write a Great Business Plan: Financial Analysis

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Executive Summary

A condensed version of a complete business plan or proposal

What is an Executive Summary?

An executive summary is the first section of a business plan or proposal that provides a brief overview of the document and contains its main points. In other words, it is a condensed version of a complete business plan or proposal. It is primarily used in the business world, but its application in academia is also possible.

Breaking Down Executive Summary

Generally, an executive summary is relatively short, with an average length of one to four pages. It should be written in short paragraphs, using clear and concise language appropriate for the target audience. One should know well the target audience of the document to convey the message as clearly as possible. In addition, the summary must have a similar structure and flow as the main document.

The executive summary must not be confused with an abstract of the document. The abstract is a complementary overview of a larger document that does not provide much value to the reader by itself. On the other hand, the executive summary is a shorter version of the main document and can be read separately because it provides all the key points of the document.

Components of the Summary

Despite the fact that the components of the executive summary may vary depending on the specifics of the main document, some major parts are still presented in the majority of the summaries. The key components typically include:

• Overview of a company/business
• Identification of a main problem or proposition
• Analysis of a problem or proposition, with supporting facts, data, and figures
• Possible solutions and their justifications
• Clearly defined conclusions

Importance of an Executive Summary

The primary goals of the executive summary are to provide a condensed version of the main document, such as a business plan, and to grab the attention of the reader(s). Since the readers of the business plans and reports (investors, lenders, and C-level executives ) generally do not have time to read all the lengthy documents they receive, a well-written summary can help you to grab their attention and subsequently achieve your business goals.

As the executive summary is the initial representation of the complete document, it should cover the main parts of a plan or proposal and indicate the points that are elaborated on in the final document.

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First Steps: Writing the Executive Summary of Your Business Plan This quick guide offers tips that will help you create the executive summary for your business plan.

By Entrepreneur Staff Jan 4, 2015

In their book Write Your Business Plan , the staff of Entrepreneur Media, Inc. offer an in-depth understanding of what's essential to any business plan, what's appropriate for your venture, and what it takes to ensure success. In this edited excerpt, the authors outline what to include in your business plan's executive summary and why.

The first part of your business plan that anybody will see is the executive summary. It's a brief look at the key elements of the whole plan—and it's critical.

The executive summary should be only a page or two. In it, you may include your mission and vision statements, a brief sketch of your plans and goals, a quick look at your company and its organization, an outline of your strategy, and highlights of your financial status and needs. Your executive summary is the CliffsNotes of your business plan.

The summary is the most important part of your whole plan, so you want it to be as strong as possible because it's the first thing people read in your plan, and we all know the power of a strong first impression. This is where you want to wow people and make them think.

The executive summary has to perform a host of jobs. First and foremost, it should grab the reader's attention. It has to briefly hit the high points of your plan. It should point readers with questions requiring detailed responses to the full-length sections of your plan where they can get answers. It should ease the task of anybody whose job it is to read it, and it should make that task enjoyable by presenting an interesting and compelling account of your company.

Here's a suggested format for an executive summary:

1. What's the business idea, what problem does it solve and how does it fit into the marketplace?

You'll need to explain why your idea has merit and how it can solve a common problem by making things easier, faster, or cheaper for the prospective customer(s). No matter how brilliantly crafted, written and presented your business plan is, it will be difficult to win your investors, and later customers, with a bad idea. Therefore, you want to wow them first with your idea! If they're not interested, no matter what your financials are, they won't help.

2. How much will it cost, and how much financing are you seeking?

Provide a short explanation of how you'll use any financing you seek. Tell investors why you need the money. Nobody wants to lend you money if they don't know exactly why you need it. It's not necessary to get into much detail here—just make it clear that you need it for x, y and z. You should also let the reader know how the investment will help the company grow and/or increase its profits. Why else would you be seeking funding? The best use of somebody else's money is to buy or build something that will make more money, both for you and for that person.

3. What will the return be to the investor? Over what length of time?

In your executive summary, consider the following:

• Friends and family want to get their money back someday but are not very interested in timing and returns.
• Bankers look for free cash flow to pay back the principal and interest of their loan. They also look closely at management experience and marketing. They may ask for collateral. By law they have to be conservative, that is, risk averse, so they are not great candidates for risky financing.
• Angel investors look for moderate rates of return, usually above the prime rate, plus some capital appreciation. They sometimes want to be involved at a hands-on level.
• Venture capitalists seek annual compound rates of return in the area of 35 to 50 percent per annum. They seldom want to go longer than three to five years to cash out. They always want to know what the exit strategy is.

Don't forget yourself: It's a rare company that doesn't have any investment from the entrepreneur or entrepreneurs who started it.

4. How will the ownership be divided?

When a business starts generating profits and plowing them back into the firm, value can build rapidly. Even if you aren't in an industry likely to purchase buildings or patent valuable technology, the business derives value from the fact that it can generate profits into the future.

Spell out who owns what. If you have many equity investors coupled with a pile of creditors, this can get pretty complicated. For the summary section of your plan, a basic description such as "Ownership of the company will be divided so that each of the four original partners owns 25 percent" will suffice. If you have to negotiate details of exactly what any equity investors will get, there's time to do that later. For now, you just want to give people an idea of how the ownership will be divided.

Additional questions you may want to consider answering in your executive summary include:

• What is the management team?
• What are the product and competitive strategies?
• What is your marketing plan?
• What is your exit strategy?

Give It a Happy Ending

The summary is the place to put your best foot forward, to talk up the upside and downplay the downside. As always, accentuating the positive doesn't mean exaggeration or lying. If there's a really important, unusual risk factor in your plan—such as that one certain big customer has to make a huge order for the whole plan to work—then you'll want to mention that in your summary. But run-of-the-mill risks like unexpected competition or customer reluctance can be ignored here. Paint a convincing portrait of an opportunity so compelling that only a dullard wouldn't recognize it and desire to take part in it.

The key to the executive summary is to pick out the best aspects of every part of your plan. So extract the essence of each key part, and offer your readers a highlight reel of your business.

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Mistakes To Avoid When Writing an Executive Summary

Learn how to create a strong executive summary for your business plan

• Writing Your Executive Summary First

Making the Executive Summary Too Long

Not engaging the reader, how to write a good executive summary, frequently asked questions (faqs).

paulaphoto / Getty Images

Writing an executive summary is a key step in creating a business plan. An executive summary is a brief synopsis of your business's main points—but more than that, it's an opportunity to draw in the reader.

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.

Key Takeaways

• A business plan executive summary offers an overview of the plan itself and what the business is all about.
• An effective executive summary conveys the most important aspects of the plan in short form while pushing the reader to want to learn more.
• Rambling and including unrealistic goals or projections are some of the most common mistakes business owners make when writing an executive summary.
• It may be worth investing in a professionally written business plan if you're struggling to create a memorable executive summary or flesh out the other parts of the plan.

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 summary
• Company description
• Market analysis
• Organization and management
• Service and product line
• Marketing and sales
• Funding request
• Financial projections

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.

A business plan for a startup may look very different and emphasize things such as key partnerships, customer relationships, revenue streams, and the company's overall value proposition.

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.

If three to five pages doesn’t work, aim to have your executive summary length be equivalent to 5% to 10% of the total business plan length.

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.

Consider what kind of return on investment (ROI) you might be able to get by outsourcing the executive summary or business plan to a professional writer versus writing it yourself.

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.

What is an executive summary?

An executive summary is the introductory section of a business plan that showcases key information about the business. An executive summary offers an overview of your business at a glance and should be designed to entice the reader to learn more.

How long should an executive summary be?

Generally speaking, an executive summary should be no more than five pages or 5% to 10% of the total length of the business plan. An executive summary that's too long may cause readers to lose interest, while one that's too short may not be compelling enough to convince them to keep reading.

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More From Forbes

How To Start A Business Plan: A Step-By-Step Guide

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Creating a business plan is a critical first step for any entrepreneur. Knowing how to start a business plan will help you create a roadmap, guiding your business from startup to growth and beyond. Whether you're looking for investment, trying to set clear goals, or simply organizing your thoughts, a solid business plan can make all the difference.

Here is a guide to help you get started on your business plan:

1. executive summary.

What It Is: This section summarizes your business plan as a whole and outlines your company profile and goals.

What to Include:

• Business name and location
• Products or services offered
• Mission statement
• The purpose of the plan (e.g., seeking funding, guiding the startup process)

Tip: Keep it concise. Although it's the first section, it's often best to write it last, after you’ve detailed everything else.

2. Company Description

What It Is: This section provides detailed information about your company, including who you are, what you do, and what markets you serve.

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• Your business structure (e.g., sole proprietorship, LLC, corporation)
• The industry and marketplace needs your business meets
• Your business’s objectives and how you stand out from competitors

Tip: Use this section to highlight your company’s strengths and what makes you unique.

3. Market Research

What It Is: Market research demonstrates your understanding of the industry and target market.

• Market size and growth potential
• Target customer demographics
• Market trends and outlook
• Competitive analysis, including strengths and weaknesses of competitors

Tip: Include data and statistics to back up your findings and show that you’ve done your homework.

4. Organization and Management

What It Is: This section outlines your business’s organizational structure and management team.

• Organizational chart
• Information about the ownership of the company
• Backgrounds and qualifications of the management team
• Roles and responsibilities within the company

Tip: Highlight the skills and experiences of your team that will help the business succeed.

5. Products or Services Line

What It Is: Here, you detail the products or services you offer or plan to offer.

• A description of each product or service
• The lifecycle of products or services
• Research and development activities, if applicable
• Intellectual property, such as patents or trademarks

Tip: Focus on the benefits your products or services bring to your customers.

6. Marketing and Sales Strategy

What It Is: This section explains how you will attract and retain customers.

• Marketing strategies, including advertising, promotions, and public relations
• Sales strategies, including sales processes, channels, and tactics
• Pricing strategy and how it compares to competitors

Tip: Ensure your marketing and sales strategies are aligned with your market research findings.

7. Funding Request

What It Is: If you’re seeking funding , this section outlines your requirements.

• Your current funding needs
• Future funding requirements over the next five years
• How you intend to use the funds
• Potential future financial plans (e.g., selling the business, repaying debt)

Tip: Be specific and realistic about how much funding you need and how it will be used.

8. Financial Projections

What It Is: Financial projections provide a forecast of your business’s financial future.

• Income statements
• Cash flow statements
• Balance sheets
• Break-even analysis

Tip: Use realistic and conservative estimates. Consider hiring a financial professional to help with this section if needed.

9. Appendix

What It Is: The appendix includes any additional information that supports your business plan.

• Resumes of key management team members
• Permits and leases
• Legal documents
• Detailed market research data
• Product photos

Tip: Only include essential information that adds value to your business plan.

Final Tips for Creating a Business Plan

Creating a business plan requires clarity and precision. First and foremost, keep your business plan clear and concise. Avoid using jargon or complex language that could make the plan difficult to read or understand. Your aim should be to communicate your ideas effectively and efficiently.

Next, be realistic in your approach. Ensure that your goals and financial projections are attainable based on your research and understanding of the market. Overly ambitious projections can undermine your credibility and potentially lead to unrealistic expectations.

It's also essential to remember that a business plan is a dynamic document. As your business grows and market conditions change, you should revisit and revise your plan regularly. This helps you stay aligned with your goals and adapt to new challenges and opportunities.

Finally, seek feedback from experienced business professionals. Having someone with business experience review your plan can provide valuable insights and help identify any potential issues or areas for improvement. Their feedback can enhance the overall quality and effectiveness of your business plan.

By following these tips, you'll be better equipped to create a robust and effective business plan that can guide your business towards success.

The bottom line is that starting a business plan may seem challenging, but with careful planning and attention to detail, you can create a comprehensive guide to steer your business toward success. Use this step-by-step guide to ensure that all essential components are covered, giving your business the best possible start.

Melissa Houston, CPA is the author of Cash Confident: An Entrepreneur’s Guide to Creating a Profitable Business and the founder of She Means Profit . As a Business Strategist for small business owners, Melissa helps women making mid-career shifts, to launch their dream businesses, and I also guide established business owners to grow their businesses to more profitably.

The opinions expressed in this article are not intended to replace any professional or expert accounting and/or tax advice whatsoever.

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Watch CBS News

What is Project 2025? What to know about the conservative blueprint for a second Trump administration

By Melissa Quinn , Jacob Rosen

Updated on: July 11, 2024 / 9:40 AM EDT / CBS News

Washington — Voters in recent weeks have begun to hear the name "Project 2025" invoked more and more by President Biden and Democrats, as they seek to sound the alarm about what could be in store if former President Donald Trump wins a second term in the White House.

Overseen by the conservative Heritage Foundation, the multi-pronged initiative includes a detailed blueprint for the next Republican president to usher in a sweeping overhaul of the executive branch.

Trump and his campaign have worked to distance themselves from Project 2025, with the former president going so far as to call some of the proposals "abysmal." But Democrats have continued to tie the transition project to Trump, especially as they find themselves mired in their own controversy over whether Mr. Biden should withdraw from the 2024 presidential contest following his startling debate performance last month.

Here is what to know about Project 2025:

What is Project 2025?

Project 2025 is a proposed presidential transition project that is composed of four pillars: a policy guide for the next presidential administration; a LinkedIn-style database of personnel who could serve in the next administration; training for that pool of candidates dubbed the "Presidential Administration Academy;" and a playbook of actions to be taken within the first 180 days in office.

It is led by two former Trump administration officials: Paul Dans, who was chief of staff at the Office of Personnel Management and serves as director of the project, and Spencer Chretien, former special assistant to Trump and now the project's associate director.

Project 2025 is spearheaded by the Heritage Foundation, but includes an advisory board consisting of more than 100 conservative groups.

Much of the focus on — and criticism of — Project 2025 involves its first pillar, the nearly 900-page policy book that lays out an overhaul of the federal government. Called "Mandate for Leadership 2025: The Conservative Promise," the book builds on a "Mandate for Leadership" first published in January 1981, which sought to serve as a roadmap for Ronald Reagan's incoming administration.

The recommendations outlined in the sprawling plan reach every corner of the executive branch, from the Executive Office of the President to the Department of Homeland Security to the little-known Export-Import Bank. 

The Heritage Foundation also created a "Mandate for Leadership" in 2015 ahead of Trump's first term. Two years into his presidency, it touted that Trump had instituted 64% of its policy recommendations, ranging from leaving the Paris Climate Accords, increasing military spending, and increasing off-shore drilling and developing federal lands. In July 2020, the Heritage Foundation gave its updated version of the book to then-White House Chief of Staff Mark Meadows. 

The authors of many chapters are familiar names from the Trump administration, such as Russ Vought, who led the Office of Management and Budget; former acting Defense Secretary Chris Miller; and Roger Severino, who was director of the Office of Civil Rights at the Department of Health and Human Services.

Vought is the policy director for the 2024 Republican National Committee's platform committee, which released its proposed platform on Monday. 

John McEntee, former director of the White House Presidential Personnel Office under Trump, is a senior advisor to the Heritage Foundation, and said that the group will "integrate a lot of our work" with the Trump campaign when the official transition efforts are announced in the next few months.

Candidates interested in applying for the Heritage Foundation's "Presidential Personnel Database" are vetted on a number of political stances, such as whether they agree or disagree with statements like "life has a right to legal protection from conception to natural death," and "the President should be able to advance his/her agenda through the bureaucracy without hindrance from unelected federal officials."

The contributions from ex-Trump administration officials have led its critics to tie Project 2025 to his reelection campaign, though the former president has attempted to distance himself from the initiative.

What are the Project 2025 plans?

Some of the policies in the Project 2025 agenda have been discussed by Republicans for years or pushed by Trump himself: less federal intervention in education and more support for school choice; work requirements for able-bodied, childless adults on food stamps; and a secure border with increased enforcement of immigration laws, mass deportations and construction of a border wall. 

But others have come under scrutiny in part because of the current political landscape. 

Abortion and social issues

In recommendations for the Department of Health and Human Services, the agenda calls for the Food and Drug Administration to reverse its 24-year-old approval of the widely used abortion pill mifepristone. Other proposed actions targeting medication abortion include reinstating more stringent rules for mifepristone's use, which would permit it to be taken up to seven weeks into a pregnancy, instead of the current 10 weeks, and requiring it to be dispensed in-person instead of through the mail.

The Alliance Defending Freedom, a conservative legal group that is on the Project 2025 advisory board, was involved in a legal challenge to mifepristone's 2000 approval and more recent actions from the FDA that made it easier to obtain. But the Supreme Court rejected the case brought by a group of anti-abortion rights doctors and medical associations on procedural grounds.

The policy book also recommends the Justice Department enforce the Comstock Act against providers and distributors of abortion pills. That 1873 law prohibits drugs, medicines or instruments used in abortions from being sent through the mail.

Now that the Supreme Court has overturned Roe v. Wade , the volume states that the Justice Department "in the next conservative administration should therefore announce its intent to enforce federal law against providers and distributors of such pills."

The guide recommends the next secretary of Health and Human Services get rid of the Reproductive Healthcare Access Task Force established by the Biden administration before Roe's reversal and create a "pro-life task force to ensure that all of the department's divisions seek to use their authority to promote the life and health of women and their unborn children."

In a section titled "The Family Agenda," the proposal recommends the Health and Human Services chief "proudly state that men and women are biological realities," and that "married men and women are the ideal, natural family structure because all children have a right to be raised by the men and women who conceived them."

Further, a program within the Health and Human Services Department should "maintain a biblically based, social science-reinforced definition of marriage and family."

During his first four years in office, Trump banned transgender people from serving in the military. Mr. Biden reversed that policy , but the Project 2025 policy book calls for the ban to be reinstated.

Targeting federal agencies, employees and policies

The agenda takes aim at longstanding federal agencies, like the National Oceanic and Atmospheric Administration, or NOAA. The agency is a component of the Commerce Department and the policy guide calls for it to be downsized. 

NOAA's six offices, including the National Weather Service and National Marine Fisheries Service, "form a colossal operation that has become one of the main drivers of the climate change alarm industry and, as such, is harmful to future U.S. prosperity," the guide states. 

The Department of Homeland Security, established in 2002, should be dismantled and its agencies either combined with others, or moved under the purview of other departments altogether, the policy book states. For example, immigration-related entities from the Departments of Homeland Security, Justice and Health and Human Services should form a standalone, Cabinet-level border and immigration agency staffed by more than 100,000 employees, according to the agenda.

If the policy recommendations are implemented, another federal agency that could come under the knife by the next administration, with action from Congress, is the Consumer Financial Protection Bureau.

The agenda seeks to bring a push by conservatives to target diversity, equity and inclusion, or DEI, initiatives in higher education to the executive branch by wiping away a slew of DEI-related positions, policies and programs and calling for the elimination of funding for partners that promote DEI practices.

It states that U.S. Agency for International Development staff and grantees that "engage in ideological agitation on behalf of the DEI agenda" should be terminated. At the Treasury Department, the guide says the next administration should "treat the participation in any critical race theory or DEI initiative without objecting on constitutional or moral grounds, as per se grounds for termination of employment."

The Project 2025 policy book also takes aim at more innocuous functions of government. It calls for the next presidential administration to eliminate or reform the dietary guidelines that have been published by the Department of Agriculture for more than 40 years, which the authors claim have been "infiltrated" by issues like climate change and sustainability.

Immigration

Trump made immigration a cornerstone of his last two presidential runs and has continued to hammer the issue during his 2024 campaign. Project 2025's agenda not only recommends finishing the wall along the U.S.-Mexico border, but urges the next administration to "take a creative and aggressive approach" to responding to drug cartels at the border. This approach includes using active-duty military personnel and the National Guard to help with arrest operations along the southern border.

A memo from Immigration and Customs Enforcement that prohibits enforcement actions from taking place at "sensitive" places like schools, playgrounds and churches should be rolled back, the policy guide states. 

When the Homeland Security secretary determines there is an "actual or anticipated mass migration of aliens" that presents "urgent circumstances" warranting a federal response, the agenda says the secretary can make rules and regulations, including through their expulsion, for as long as necessary. These rules, the guide states, aren't subject to the Administration Procedure Act, which governs the agency rule-making process.

What do Trump and his advisers say about Project 2025?

In a post to his social media platform on July 5, Trump wrote , "I know nothing about Project 2025. I have no idea who is behind it. I disagree with some of the things they're saying and some of the things they're saying are absolutely ridiculous and abysmal. Anything they do, I wish them luck, but I have nothing to do with them."

Trump's pushback to the initiative came after Heritage Foundation President Kevin Roberts said in a podcast interview that the nation is "in the process of the second American Revolution, which will remain bloodless if the left allows it to be."

The former president continued to disavow the initiative this week, writing in another social media post  that he knows nothing about Project 2025.

"I have not seen it, have no idea who is in charge of it, and, unlike our very well received Republican Platform, had nothing to do with it," Trump wrote. "The Radical Left Democrats are having a field day, however, trying to hook me into whatever policies are stated or said. It is pure disinformation on their part. By now, after all of these years, everyone knows where I stand on EVERYTHING!"

While the former president said he doesn't know who is in charge of the initiative, the project's director, Dans, and associate director, Chretien, were high-ranking officials in his administration. Additionally, Ben Carson, former secretary of Housing and Urban Development under Trump; John Ratcliffe, former director of National Intelligence in the Trump administration; and Peter Navarro, who served as a top trade adviser to Trump in the White House, are listed as either authors or contributors to the policy agenda.

Still, even before Roberts' comments during "The War Room" podcast — typically hosted by conservative commentator Steve Bannon, who reported to federal prison to begin serving a four-month sentence last week — Trump's top campaign advisers have stressed that Project 2025 has no official ties to his reelection bid.

Susie Wiles and Chris LaCivita, senior advisers to the Trump campaign, said in a November statement that 2024 policy announcements will be made by Trump or his campaign team.

"Any personnel lists, policy agendas, or government plans published anywhere are merely suggestions," they said.

While the efforts by outside organizations are "appreciated," Wiles and LaCivita said, "none of these groups or individuals speak for President Trump or his campaign."

In response to Trump's post last week, Project 2025 reiterated that it was separate from the Trump campaign.

"As we've been saying for more than two years now, Project 2025 does not speak for any candidate or campaign. We are a coalition of more than 110 conservative groups advocating policy & personnel recommendations for the next conservative president. But it is ultimately up to that president, who we believe will be President Trump, to decide which recommendations to implement," a statement on the project's X account said.

The initiative has also pushed back on Democrats' claims about its policy proposals and accused them of lying about what the agenda contains.

What do Democrats say?

Despite their attempts to keep some distance from Project 2025, Democrats continue to connect Trump with the transition effort. The Biden-Harris campaign frequently posts about the project on X, tying it to a second Trump term.

Mr. Biden himself accused his Republican opponent of lying about his connections to the Project 2025 agenda, saying in a statement that the agenda was written for Trump and "should scare every single American." He claimed on his campaign social media account  Wednesday that Project 2025 "will destroy America."

Congressional Democrats have also begun pivoting to Project 2025 when asked in interviews about Mr. Biden's fitness for a second term following his lackluster showing at the June 27 debate, the first in which he went head-to-head with Trump.

"Trump is all about Project 2025," Pennsylvania Sen. John Fetterman told CNN on Monday. "I mean, that's what we really should be voting on right now. It's like, do we want the kind of president that is all about Project '25?"

Rep. Jim Clyburn of South Carolina, one of Mr. Biden's closest allies on Capitol Hill, told reporters Monday that the agenda for the next Republican president was the sole topic he would talk about.

"Project 2025, that's my only concern," he said. "I don't want you or my granddaughter to live under that government."

In a statement reiterating her support for Mr. Biden, Rep. Frederica Wilson of Florida called Project 2025 "MAGA Republicans' draconian 920-page plan to end U.S. democracy, give handouts to the wealthy and strip Americans of their freedoms."

What are Republicans saying about Project 2025?

Two GOP senators under consideration to serve as Trump's running mate sought to put space between the White House hopeful and Project 2025, casting it as merely the product of a think tank that puts forth ideas.

"It's the work of a think tank, of a center-right think tank, and that's what think tanks do," Florida Sen. Marco Rubio told CNN's "State of the Union" on Sunday.

He said Trump's message to voters focuses on "restoring common sense, working-class values, and making our decisions on the basis of that."

Ohio Sen. J.D. Vance raised a similar sentiment in an interview with NBC's "Meet the Press," saying organizations will have good ideas and bad ideas.

"It's a 900-page document," he said Sunday. "I guarantee there are things that Trump likes and dislikes about that 900-page document. But he is the person who will determine the agenda of the next administration."

Jaala Brown contributed to this report.

Melissa Quinn is a politics reporter for CBSNews.com. She has written for outlets including the Washington Examiner, Daily Signal and Alexandria Times. Melissa covers U.S. politics, with a focus on the Supreme Court and federal courts.

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Department of Transportation Equity Action Plan Update

A Notice by the Transportation Department on 07/15/2024

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Office of the Secretary (OST), Department of Transportation (DOT).

Request for Information (RFI).

The Office of the Secretary of Transportation (OST) invites public comment on the most meaningful activities to advance equity that should be considered as part of DOT's 2024 update to its Equity Action Plan. The responses to this RFI will help the Department of Transportation (DOT, or the Department) understand the impact of our equity activities to date and inform what equity-related activities and performance metrics we prioritize through the Plan.

Comments are requested by August 14, 2024. See the SUPPLEMENTARY INFORMATION section on “Public Participation,” below, for more information about written comments.

Written Comments: Responses to this RFI are voluntary Comments should refer to the docket number above and be submitted by one of the following methods:

• Federal Rulemaking Portal: http://www.regulations.gov . Follow the online instructions for submitting comments.
• Mail: Docket Management Facility, U.S. Department of Transportation, 1200 New Jersey Avenue SE, West Building Ground Floor, Room W12-140, Washington, DC 20590-0001.
• Hand Delivery: 1200 New Jersey Avenue SE, West Building Ground Floor, Room W12-140, Washington, DC, between 9 a.m. and 5 p.m. ET, Monday through Friday, except Federal Holidays.

Instructions: For detailed instructions on submitting comments and additional information on the rulemaking process, see the Public Participation heading of the SUPPLEMENTARY INFORMATION section of this document. Note that all comments received will be posted without change to http://www.regulations.gov , including any personal information provided.

Privacy Act: Except as provided below (“ confidential business information ”), all comments received into the docket will be made public in their entirety. The comments will be searchable by the name of the individual submitting the comment (or signing the comment, if submitted on behalf of an association, business, labor union, etc.). You should not include information in your comment that you do not want to be made public. For information on DOT's Privacy Act compliance, see https://www.transportation.gov/​privacy .

Docket: For access to the docket to read background documents or comments received, go to http://www.regulations.gov or to the street address listed above. Follow the online instructions for accessing the dockets.

Please email [email protected] or contact Kristin Wood at 774-293-2726 with questions. Office hours are from 8 a.m. to 5 p.m. EDT, Monday through Friday, except for Federal holidays.

Through this Request for Information (RFI), the Department solicits input from the public on the following question:

(1) What activities being advanced through DOT's Equity Action Plan would be the most meaningful in advancing equity?

(a) What activities can be expanded?

(b) What new activities can DOT consider for the future?

This section includes additional background information related to DOT's Equity Action Plan that may be helpful in responding to this question.

The DOT Strategic Plan (available at https://www.transportation.gov/​dot-strategic-plan ) is a roadmap for the Department's implementation of six strategic goals, one of which is Equity. The Equity strategic goal states that the Department will “reduce inequities across our transportation systems and the communities they affect” and “support and engage people and communities to promote safe, affordable, accessible, and multimodal access to opportunities and services while reducing transportation-related disparities, adverse community impacts, and health effects.”

In response to Executive Order (E.O.) 13985, Advancing Racial Equity and Support for Underserved Communities Through the Federal Government ( https://www.federalregister.gov/​documents/​2021/​01/​25/​2021-01753/​advancing-racial-equity-and-support-for-underserved-communities-through-the-federal-government ), the Department developed its first Equity Action Plan ( https://www.transportation.gov/​priorities/​equity/​actionplan ). It highlighted key actions that the Department will Start Printed Page 57517 undertake to expand access and opportunity to all communities while focusing on underserved, overburdened, and disadvantaged communities.

E.O. 14091 , Further Advancing Racial Equity and Support for Underserved Communities Through the Federal Government ( https://www.federalregister.gov/​documents/​2023/​02/​22/​2023-03779/​further-advancing-racial-equity-and-support-for-underserved-communities-through-the-federal ), directs all federal agencies to update their Equity Action Plans on an annual basis. Specifically, each update should include: the progress made by the agency on the actions, performance measures, and milestones highlighted in the preceding year's Equity Action Plan; potential barriers that underserved communities may face; strategies to address those barriers, and a description of how the agency intends to meaningfully engage with underserved communities. In response to E.O. 14091 , the 2023 update to DOT's Equity Action Plan ( https://www.transportation.gov/​priorities/​equity/​2023-equity-action-plan ) highlights DOT accomplishments and updated commitments to equity. Actions in the EAP fall under five focus areas, including four that carried over from the original Equity Action Plan: Wealth Creation; Power of Community; Proactive Intervention, Planning, and Capacity Building; Expanding Access; and a new Institutionalizing Equity focus area.

The Bipartisan Infrastructure Law (BIL; enacted November 15, 2021 as the Infrastructure Investment and Jobs Act) and Inflation Reduction Act (IRA; enacted August 16, 2022) make historic investments in the transportation sector, improving public safety and climate resilience, creating jobs across the country, and delivering a more equitable future. The Department is committed to applying an equity lens to implementation of BIL and IRA, including through actions described in our initial and updated Equity Action Plans.

Government-wide definitions of (a) equity, (b) underserved communities, and (c) disadvantaged communities have been established via Executive Order(s). DOT has adopted these government-wide definitions for the purpose of this RFI and our Equity Action Plan:

(a) The term “equity” means the consistent and systematic treatment of all individuals in a fair, just, and impartial manner, including individuals who belong to communities that often have been denied such treatment, such as Black, Latino, Indigenous and Native American, Asian American, Native Hawaiian, and Pacific Islander persons and other persons of color; members of religious minorities; women and girls; lesbian, gay, bisexual, transgender, and queer (LGBTQ+) persons; persons with disabilities; persons who live in rural areas; persons who live in United States Territories; persons otherwise adversely affected by persistent poverty or inequality; and individuals who belong to multiple such communities. [Source: E.O. 14091 .]

(b) The term “underserved communities” refers to those populations [included in the definition of “equity”] as well as geographic communities that have been systematically denied the opportunity to participate fully in aspects of economic, social, and civic life, as defined in E.O. 13985 . [Source: E.O. 14091 .]

(c) The term “disadvantaged community” refers to a community that experiences disproportionately high and adverse health, environmental, climate related, economic, and other cumulative impacts. [Source: E.O. 14008 , Tackling the Climate Crisis at Home and Abroad, https://www.federalregister.gov/​documents/​2021/​02/​01/​2021-02177/​tackling-the-climate-crisis-at-home-and-abroad . ]

In addition, DOT has adopted the following definitions of (d) overburdened community and (2) for the purpose of this RFI and our Equity Action Plan:

(d) The term “overburdened community” refers to minority, low-income, tribal, or Indigenous populations or geographic locations in the United States that potentially experience disproportionate environmental and/or safety harms and risks. This disproportionality can be a result of greater vulnerability to environmental hazards, heightened safety risks, lack of opportunity for public participation, or other factors. [Source: https://www.epa.gov/​environmentaljustice/​ej-2020-glossary . ]

(e) The term “meaningful public involvement” refers to a process that proactively seeks full representation from the community, considers public comments and feedback, and incorporates that feedback into a project, program, or plan. [Source: https://www.transportation.gov/​public-involvement . ]

DOT is in the process of preparing the 2024 Equity Action Plan update. The responses to this RFI will help the Department understand the impact of our equity activities to date and inform what we prioritize through this year's update to DOT's Equity Action Plan. Through this request, the Department seeks information from stakeholders in public agencies, academic researchers involved in the study of equity in transportation decision-making, advocacy, community-based organizations, and not-for-profit institutions and individuals working in the transportation sector or the field of equity, and State, local, Tribal, and territorial areas, and the public. A summary of input provided to the 2023 EAP update is available at: https://www.transportation.gov/​equity-RFI and a webinar will be hosted on July 25, 2024.

To ensure that your comments are filed correctly, please include the docket number of this document DOT-OST-2024-0072 in your comments.

Please submit one copy (two copies if submitting by mail or hand delivery) of your comments, including any attachments, to the docket following the instructions given above under ADDRESSES . Please note, if you are submitting comments electronically as a PDF (Adobe) file, we ask that the documents submitted be scanned using an Optical Character Recognition (OCR) process, thus allowing the Agency to search and copy certain portions of your submissions.

Any submissions containing Confidential Information must be delivered to DOT in the following manner:

• Submitted in a sealed envelope marked “confidential treatment requested”;
• Document(s) or information that the submitter would like withheld from the public docket should be marked “PROPIN”;
• Accompanied by an index listing the document(s) or information that the submitter would like the Departments to withhold. The index should include information such as numbers used to identify the relevant document(s) or information, document title and description, and relevant page numbers and/or section numbers within a document; and
• Submitted with a statement explaining the submitter's grounds for objecting to disclosing the information to the public.

DOT will treat such marked submissions as confidential under the FOIA and not include them in the public docket. DOT also requests that Start Printed Page 57518 submitters of Confidential Information include a non-confidential version (either redacted or summarized) of those confidential submissions in the public docket. If the submitter cannot provide a non-confidential version of its submission, DOT requests that the submitter post a notice in the docket stating that it has provided DOT with Confidential Information. Should a submitter fail to docket either a non-confidential version of its submission or to post a notice that Confidential Information has been provided, we will note the receipt of the submission on the docket, with the submitter's organization or name (to the degree permitted by law) and the date of submission.

DOT will consider all comments received before the close of business on the comment closing date indicated above under DATES . To the extent practicable, DOT will also consider comments received after that date.

You may read the comments received at the address given above under Written Comments. The hours of the docket are indicated above in the same location. You may also see the comments on the internet, identified by the docket number at the heading of this notice, at http://www.regulations.gov .

Please note, this RFI is a planning document and will serve as such. The RFI should not be construed as policy, a solicitation for applications, or an obligation on the part of the government.

Issued in Washington, DC, on July 10, 2024.

Mariia Zimmerman,

Principal Deputy Assistant Secretary for Transportation Policy.

[ FR Doc. 2024-15456 Filed 7-12-24; 8:45 am]

BILLING CODE 4910-9X-P

• Executive Orders

Corporate sustainability due diligence

Fostering sustainable and responsible corporate behaviour for a just transition towards a sustainable economy.

On 23 February 2022, the European Commission adopted a proposal for a Directive on corporate sustainability due diligence. On 24 May 2024 the Council of the European Union approved the political agreement, thereby completing the adoption process. The aim of this Directive is to foster sustainable and responsible corporate behaviour in companies’ operations and across their global value chains. The new rules will ensure that companies in scope identify and address adverse human rights and environmental impacts of their actions inside and outside Europe.

What are the benefits of these new rules?

• Better protection of human rights, including labour rights.
• Healthier environment for present and future generations, including climate change migration.
• Increased trust in businesses.
• More transparency enabling informed choices.
• Better access to justice for victims. 

• Harmonised legal framework in the EU, creating legal certainty and level playing field.
• Greater customer trust and employees’ commitment.
• Better awareness of companies’ negative human rights and environmental impacts, less liability risks.
• Better risk management, more resilience and increased competitiveness.
• Increased attractiveness for talent, sustainability-oriented investors and public procurers.
• Increased incentives for innovation.
• Better access to finance.

• Better protection of human rights and the environment.
• Sustainable investment, capacity building and support for value chain companies.
• Improved sustainability-related practices.
• Increased take-up of international standards.
• Improved living conditions for people.

What are the obligations for companies?

This Directive establishes a  corporate due diligence duty . The core elements of this duty are identifying and addressing potential and actual adverse human rights and environmental impacts in the company’s own operations, their subsidiaries and, where related to their value chain(s), those of their business partners. In addition, the Directive sets out an obligation for large companies to adopt and put into effect, through best efforts, a transition plan for climate change mitigation aligned with the 2050 climate neutrality objective of the Paris Agreement as well as intermediate targets under the European Climate Law.

Which companies will the new EU rules apply to?

Large EU limited liability companies & partnerships :  

+/- 6,000 companies  - >1000 employees and >EUR 450 million turnover (net) worldwide.

Large non–EU companies: 

+/- 900 companies  - > EUR 450 million turnover (net) in EU .

The Directive contains provisions to facilitate compliance and limit the burden on companies, both in scope and in the value chain.

Micro companies and SMEs are not covered by the proposed rules. However, the Directive provides supporting and protective measures for SMEs, which could be indirectly affected as business partners in value chains.

What are the estimated costs of the new rules for companies?

Businesses will have to bear :

• The costs of establishing and operating the due diligence process.
• Transition costs, including expenditure and investments to adapt a company’s own operations and value chains to comply with the due diligence obligation, if needed. 

How will the new rules be enforced?

The rules on  corporate sustainability due diligence  will be enforced through:

• Administrative supervision : Member States will designate an authority to supervise and enforce the rules, including through injunctive orders and effective, proportionate and dissuasive penalties (in particular fines). At European level, the Commission will set up a European Network of Supervisory Authorities that will bring together representatives of the national bodies to ensure a coordinated approach.
• Civil liability : Member States will ensure that victims get compensation for damages resulting from an intentional or negligent failure to carry out due diligence.

Why does the EU need to foster sustainable corporate behaviour?

The Directive will contribute to the just transition to a sustainable economy, in which businesses play a key role.

A broad range of stakeholder groups, including civil society representatives, EU citizens, businesses as well as business associations, have been calling for mandatory due diligence rules. 70% of the businesses who responded to the public consultation sent a clear message:  EU action on corporate sustainability due diligence is needed .

A third of companies recognised the need to act and are taking measures to address adverse effects of their actions on human rights or the environment, but progress is slow and uneven. The increasing complexity and global nature of value chains makes it challenging for companies to get reliable information on business partners’ operations. The fragmentation of national rules on corporate, sustainability-related due diligence obligations further slows down the take-up of good practices. Stand-alone measures by some Member States are not enough to help companies exploit their full potential and act sustainably.

EU rules will provide a uniform legal framework and ensure a level playing field for companies across the EU Single Market. Such rules will also foster international competitiveness, increase innovation and ensure legal certainty for companies addressing sustainability impacts. The Directive will steer businesses towards responsible behaviour and could become a new global standard with regard to mandatory environmental and human rights due diligence. 

What are the next steps?

The Directive will enter into force 20 days after its publication in the Official Journal of the European Union. Member States will have two years to transpose the Directive into national law and communicate the relevant texts to the Commission. One year later, the rules will start to apply to companies, with a gradual phase-in between 3 and 5 years after entry into force. 

A set of guidelines to be issued by the Commission will help companies to conduct due diligence.

Related links

Sustainable corporate governance consultation

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