An Effective Executive Summary Format for a Business Plan

Many people have the urge to write more than is really necessary. That's because we expect that the reader will actually read what we write. This thinking, however, contradicts our own logic when it comes to reading. Firstly, most people prefer to read concise, simple messages, rather than long, formal passages. Secondly, most people do not read every word or sentence in a passage when reading anyways.

Think about the last time you read an email or document - how quickly did you scan for key words and messages? Did you read the message entirely, or did you skim through and pick up on the main ideas?

Since our goal is to get those key messages in our executive summary across to the reader, we want to keep the executive summary concise and focused only on those key messages we aim to highlight from the full report.

Writing the Executive Summary - an example...

The Organic Pizza Co.

There is no organic, lactose-free, gluten-free pizza restaurant in the urban district of Summer Hill. In fact, there are no whole food restaurants within a 5 mile radius of the district. Yet, the urban district is home to many young high income, health-conscious professionals with an affinity for all things whole and organic. These are young adults who grew up eating pizza among other fast foods now considered unhealthy.

I have identified a location opposite the Summer Hill urban district, that can be leased for the restaurant. Due to the current economic downturn, the lease can be acquired well below normal market rates for this area.

The restaurant would need 5 employees to run effectively. It would need 3 cooks and two staff to take orders.

Financial projections show that $1 million in equity invested will achieve a 20% return within 3 years.

Notice the executive summary above is brief enough that the reader would not be discouraged to read. Notice that the executive summary format also covers the highlights of the plan...

• Who does my business, product or service benefit? (Health-conscious professionals, investors at 20% ROI)
• How much do I need to get started and running? ($1 million)
• What's my strategy for success? (sell healthy pizza to health-conscious residents in the urban district)
• Who is my target market? (Young urban professionals living in the Summer Hill urban district)
• What is my marketing strategy? (Location - opposite the the Summer Hill urban district)
• What is my sales strategy? (Sell a popular product - pizza - in a healthy format, to young professionals)
• Who will I hire to run my business (Hire 5 employees)
• What is my funding strategy? (Attract investors with a 20% return within 3 years of start-up)

By following this simple but effective executive summary format which covers the key points of your business plan, you will relate to your reader by addressing his or her concerns. And by using this brief executive summary format, you will interest your reader to read into the details of the plan, where you prove the feasibility of your business concept.