I evaluate Business Proposals. I do this every week. In the last fifteen years, I’ve seen hundreds of business proposals ranging from the large Consultancies to one-man/women businesses. Part of evaluating a proposal is checking that the numbers add up but also to see if the project in question is worth investing in. How do we know that from a fifty page document? We don’t always know, of course. But, we can make certain deductions just by looking at the first ten pages. Or even the first five. To be honest, the Executive Summary is the first hurdle you need to master if you want to get investment. Let’s look at how to do it right.

Business Plan – Executive Summary

Executive Summary Checklist

Like we said above, first impressions count. For this reason, you need to pay special attention to the Executive Summary. If your clients or investors don’t get past the Executive Summary, then the rest of your document will go unread.

This also raises the question: Should you write your Executive Summary before or after you’ve written your Business Proposal? Some business writers prefer to do it first, others write it after the entire document is completed. I write it at the end as I want the complete text before me. That way, I can digest the document and write the Executive Summary based on what I’ve read.

The following is one suggested approach for an Executive Summary. Change this to suit your needs. In the Executive Summary, include the following:

Introduction

• Brief description of your product or service
• Identify when, where, and how the company was established
• Provide the current status, including funding, of your organization

Problem Definition

• What problem does the solution solve?
• How important is it to users over the next [x] years?
• What is the business and/or technical road map?
• Who are the customers and their needs?

Market Opportunity

• What is the market size?
• What is the timing of market development?
• What are the key market drivers?
• What are the inter-dependencies of this market to other markets, businesses or the government?
• What are the supply and distribution channels?
• Has the market been validated by a customer / partner?
• What is the marketing and sales strategy?

Competitive Analysis

• Who are your competitors?
• What are your advantages and the competitive products/services?
• What business models have been successful?

Management Team

• Who are the key management personnel? Cross-reference to Appendix if necessary.
• What is their track-record? 
• How will you complete the management team if all the key members are not yet identified?

Technology

• How unique is the technology?
• Can any parts be patented?
• What is the current development status of product/service?
• How will the products be tested?

Financial Analysis

• Summarize projections for revenue, cost and return on investment
• Describe funding required to achieve the next milestones

Conclusions and final writing tips

While this looks like a lot of work, the key is to select the parts that you want to highlight in the Executive Summary and move the rest to the main document.

Most Executive Summaries are one to two pages max.

With this is mind, write the text and get all the information down first. Then revise the material and see where you can refine the wording to reduce the word count, for example, by merging points together and remove filler text. Also, look for phrases that can be pruned and made shorter. For example?

Instead of

In the event of

Write

If

Instead of

We have come to the conclusion that

Write

We decided

Instead of

The purpose of this document is to

Write

This document… (The purpose of is redundant)

Look for ways to remove these fillers. You’ll sharpen the prose in the process and give your document a nice, polished tone.

What have I missed?

About the Author: Ivan Walsh provides Business Tips for Smart People on Klariti.com. His also runs the popular Business Planning Blog at http://www.ivanwalsh.com. Follow him on Twitter at ivanwalsh.

PS: You can get the Business Plan Template from our partner Klariti.com here.

Related posts:

1. 6 Ways To Write a Better Executive Summary
2. What Warren Buffett Taught Me About Writing Executive Summaries

What I like about Warren Buffets Annual Reports is that he says so much with so few words. And loses nothing in the process. For those of us who make a living writing business documents there are a few lessons to be learnt here.

Why The Executive Summary is Important

The Executive Summary of any business document is the first impression you make on the reader. If your business plan’s executive summary is poorly written, dull, or cut/pasted together it will hardly get noticed and the effort you put into the rest of the document won’t be seen.

Instead, set aside two or three hours and write the best Executive Summary you can. Challenge yourself to write three hundred words that excite you, generate interest, and paint a picture of your company. People want to read about other people. Don’t forget the power of human interest. In the end, they’re going to do business with you – not your product.

‘The business schools reward difficult complex behavior more than simple behavior, but simple behavior is more effective.’ Warren Buffett

How to Write an Executive Summary that generates interest

Your Executive Summary should excite the reader and help them understand the key results and conclusions in your business document, whether it’s your business proposal, business plan, annual report, case study or white paper.

Looking for inspiration?

Read the Annual Reports written by Warren Buffett and you’ll see how he does it. You know he has confidence in his company. He highlights the goods news in a nice understated way and delivers the less pleasant results with the same even tone.

Executive Summary Definition

Here’s one definition from The Handbook of Technical Writing, “An executive summary is to consolidate the principal points of a report in one place. It must cover the information in the report in enough detail to reflect accurately its content but concisely enough to permit an executive to digest the significance of the report without having to read it in full…."

Characteristics of a Well-Written Executive Summary

While this is a business document in the tradition sense, you must still find ways to stimulate the reader’s interest, make them want to turn the page and take some action.

• Executive summaries must be original.
• Executive summaries must not be cut-and-pastes extracts from the main document.
• Executive Summary should provide unique information not contained anywhere else.
• Executive summaries are standalone documents. The reader, for example, an investor, should be able to grasp your over-arching aims without having to read the entire document.

Documents That Require Executive Summaries

Some business documents require summaries, others don’t. Write an executive summary for the following types of documents:

• Grant Applications
• Standards
• System Design Documents
• Technical Reports
• Training Plans
• White Papers

Documents That Do Not Require Executive Summaries

You do NOT need to write an Executive Summary for shorter documents or certain technical publications, such as:

• Functional Specifications
• Meeting minutes
• Release Notes
• Status Reports
• User Manuals
• Workshop reports

Executive Summary Format & Guidelines

These are guidelines for your Executive Summary. They’re not set in stone, so adjust where necessary. The summary should cover the:

• Purpose
• Scope
• Methodology
• Results
• Conclusions

In general, you can write it as follows:

• First paragraph answers: "What is this document about?"
• Summary answers "How did you get the information?"
• Expand on the Software Development process (if applicable)
• Facts
• Results
• Conclusions
• Findings Note: present facts in tabular format.
• Recommendations

What doesn’t go in the Executive Summary?

Other information that doesn’t go in the Executive Summary includes:

• Acknowledgments
• Background data
• Cross-references
• Footnotes
• Industry updates
• Justifications
• Objectives
• Project history
• References

Remember to close your executive summary will a strong summary statement. This must persuade the reader that your business is a winner and the only way to do this is to turn the page and learn more about your company.

Final Tips for Writing the Business Plan’s Executive Summary

Provide a summary. The business plan itself gives the financial details.

• Use strong and positive language.
• No more two pages long. Don’t pad your business plan’s executive summary with fluff.
• Generate interest by enticing your reader to read the rest of the business plan, not tell him everything.
• Read it aloud. Does it read well or sound artificial? Is it clear and succinct?
• Adjust the executive summary for your respective audience. For example, if you want to attract investors, focus on the opportunity your business provides investors and why this opportunity is so special.
• Put yourself in your readers’ shoes. Does the executive summary really make you feel excited? If not, why?

The final word goes on Warren. Here’s his take on gold, “It gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.”

Make sense?

About the Author: Ivan Walsh provides Business Tips for Smart People on Klariti.com. His also runs the Business Planning Blog at http://www.ivanwalsh.com

PS: The Business Plan Template is available from our partner here.

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