The most essential role of the executive summary in the business plan is to

An executive summary is a brief introduction and summary of your business plan. It should describe your business, the problem that it solves, your target market, and financial highlights.

A good executive summary grabs your reader’s attention and lets them know what it is you do and why they should read the rest of your business plan or proposal. It’s not unusual for investors to make an initial decision just based on reading an executive summary, so it’s important to get it right. We’ll show you how to write an executive summary that sets your business plan apart from the rest.

Is an executive summary necessary?

Are you writing a business plan to show to investors or bankers? Then you need a good executive summary. Many people will read only the summary, no matter what. Others will read the summary first to decide whether or not they read the rest of the plan. The executive summary is essential in plans that are being written for outsiders. 

Now if you’re writing a business plan solely for internal use you may not need to write out an executive summary. However, there are some internal plans ––such as an annual operations plan or a strategic plan—that can use a summary to highlight necessary information and showcase a digestible version of the overall plan.

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

How long should an executive summary be?

The general rule of thumb is that executive summaries should be as short as possible. Your audience has limited time and attention and they want to get the details of your business plan as quickly as possible.

Try to keep your executive summary under 2 pages if possible, although it can be longer if absolutely necessary. 

You might even be able to write it on one page using a Lean Plan format. You can learn more about that one-page business plan format and download a template here.

6 Tips for writing an effective executive summary

No matter why you’re writing your executive summary, there are some general rules of thumb that make it easier, and ultimately more effective. Here are a few to keep in mind as you get started:

1. Think of an executive summary as a pitch

Think of an executive summary as being a lot like an elevator pitch, but with constraints. A good summary sells the rest of the plan, but it can’t be just a hard sell—it has to actually summarize the plan. Readers expect it to cover your business, product, market, and financial highlights, at the very least (see below for more detail on this).

Of course, you’ll highlight what will most spark the reader’s interest, to achieve this plan’s immediate business objective. But your readers expect the key points covered. It’s a summary, not just a pitch.

2. Write it last

Don’t start writing your business plan with your summary. Even though the executive summary is at the beginning of a finished business plan, many experienced entrepreneurs (including me) choose to write the executive summary after they’ve written everything else.

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, so if you save it for the end, it will be quick and easy.

3. Keep your executive summary short

Be brief and concise. I know experts who recommend a single page, just a page or two, no more than five, and sometimes even longer. I say less is more. Keep it as short as you can without missing any essentials. And—I can’t resist, because I read hundreds of plans every year—one page is better than two, and two is better than five, and longer than five pages (my opinion here) is too long.

4. Keep it simple

Form follows function, so don’t over complicate or over-explain things in your summary. Most executive summaries are short texts, often with bullets, broken into subheadings. Illustrations such as a picture of a product, or a bar chart showing financial highlights, are usually a welcome addition.

5. Prioritize sections based on importance and strengths

Don’t bury the lead. Organize your executive summary so that the most important information appears first. There is no set order of appearance of the different key items included, quite the contrary, in fact— so use the order to show emphasis.

Lead with what you want to get the most attention, and follow with items in the order of importance. I tend to like summaries that start with stating a problem because that can add drama and urgency that tees up the solution in your business.

6. Use it for your summary memo

When it’s finished, repurpose it as a summary memo. It’s the first chapter of a formal plan, but you can also use it as a stand-alone “summary memo.” Investors often ask startups to send a summary memo instead of a full business plan.

It might be a short document, often attached to an email, or simply a summary in an email. You can also use it again to fill in startup profiles on investment platforms such as Gust and AngelList or to apply for an incubator or a business plan competition.

Download a template for your executive summary

If you’d like to start with a template, consider using a Lean Plan for your executive summary. It’s available as a free download here on Bplans, and it covers everything you might want to include.

View hundreds of executive summary examples

Take advantage of Bplans’ more than 500 examples of good business plans—all available online for free—to search for the sample plan that best fits your business’s profile, and then use that plan’s free example executive summary as a guide to help you through the process of writing your own.