to Write an Executive Summary That Persuades (+The One Example you Need to Steal).
An executive summary can be a key component in persuasion, whether you are trying to convince investors that your business is worth investing in or a client that your solution is the best.
Why? Why?
Many people make this mistake. The executive summary of your business plan is not a CliffsNotes version. The sizzle reel is the executive summary. It’s the movie trailer. You can use the trailer to convince a client or executive of your company’s value.
If you want to be able to write a business plan or a project proposal of any kind, you will also need to become an expert at writing executive summary.
We will break down in this article the elements of a successful executive summary. We will give you plenty of tips on how to make your executive summary convincing. We’ll also give you a sample executive summary that you can use to make your own.
What is a executive summary?
A brief summary of a longer document, such as a business report, is an executive summary. It grabs the reader’s interest and helps them understand the key points. The executive summary should not be a mere teaser. The executive summary should be a condensed version of the entire document.
The summary will be placed at the start of your business plan. This allows readers to get the information they need without having to read through your entire plan. You can also use a version of the summary as copy for your “About Us page.
A business plan’s executive summary should accomplish three main things.
- Explain the problem: Describe the problem in a few words.
- Describe the problem and suggest a solution: A brief description of your solution and value proposition.
- Benefits for clients and investors.
In order to achieve these goals, the executive summary must follow the same format as the business plan. It should also cover the same topics. You should even assume that some readers may only read your executive summary and never look at the entire plan.
What is the purpose of a executive summary?
Your 15-page plan of business will not be read by most people. Not at first. It’s important to have a five-minute elevator pitch that will convince them to take your proposal seriously. The executive summary is what does this.
We’ll break this down into ways that an executive summary can help your reader decide about your business.
Informative Articles
A good executive summary will give the reader the necessary information to make an informed decision. The most important data from your plan should be included. This will provide context on the current market, your competitors, financials and growth plans.
Harry’s, a men’s grooming company, provides a detailed description of their business on the About Us page.
Proves
You cannot just state that there is a issue and your solution is the best. To prove your statements, you’ll have to provide enough information. Your executive summary must leave your reader feeling confident about the opportunity that you are presenting.
Persuades
Your executive summary should convince the reader that working with your company is the only logical decision. You will use statistics and language that support your argument.
Yellow Leaf, a hammock manufacturer, uses its About Us page as an executive summary of their company. The brand’s version argues that relaxing and doing good are not mutually exclusive.
Asks
A business plan, unlike academic papers often asks the reader to take some sort of action. This could be a request to borrow money. It may also ask the customer to select your product or service. The call-to-action should be very clear.
What is included in a executive summary?
Executive summaries are unique. The final product will be affected by your audience, business type, and goals. There are some elements that you will include in almost all types of summaries.
- A problem statement. What is the current situation? What’s the current situation? What is the need to fill this gap?
- Solution statement. What is the product or business idea that will fill the gap and solve the problem?
- A business description. How did your business start? Who are your company’s leaders? What are your successes?
- A Market Analysis. Who are your customers? What is the size of your market? What is the market evolution?
- A Competitive Analysis. What existing companies are targeting this market? How can you differentiate your solution? How would a SWOT analysis of a competitor look?
- A financial statement. What amount of funding will you require? What are your operating expenses? What are your future expectations for this data?
- Conclusion. What is the reader required to do? What is the outcome of this decision?
How to write a executive summary
You’ve seen how useful and important an executive summary can be. How do you write one? These steps will help you create a summary which gets people excited and motivated to act about your company.
1. Complete your business plan first
A good executive summary is a stand-alone document that relies solely on your business plan. The first step is to finish the rest of your plan, and then use it as a guide for your executive summary.
2. Decide on your reader
Write multiple executive summaries of the same business plan. Each one should be aimed at a specific reader or purpose. You’ll likely focus on the short- and long-term finances if you are asking for a bank loan. If the summary is intended to convince someone to hire you, it will focus more on your social proof and abilities.
Be clear about your audience before you start. Ask them what they need to know to make a choice.
3. Create an outline
You can better understand your executive summary by creating a structure. This will help you see the logical progression of your problem to solution. It will also make easier to write summary.
4. Write a compelling introduction
Your reader should be hooked by the first few sentences. They will want to continue reading. You should write an introduction to quickly explain what your company is and why your reader will be interested.
It’s easy to grab people’s interest in an executive summary when a one woman show becomes the industry’s trailblazer and earns billions of dollars. Like Spanx, lead your business with its uniqueness.
5. Tell a Story
Storytelling is a great way to get people to take action and understand information. When writing your executive summary include characters (customers or business leaders), your Mission Statement and a story arc explaining the current and future state.
Fashion brand Allbirds tells an intriguing story with a focus in sustainability and comfort. This is a good example of a company’s About Us page, which can easily be translated into a executive summary.
6. Write in an approachable but professional tone
The name of the document makes it clear that an executive summary is for an executive. The language you use and the layout that you choose should reflect professionalism and confidence.
You don’t need to complicate the summary. Keep in mind that your audience is very busy. Your summary should be easy to read and understand.
7. Get feedback
Ask a few people to read your executive summary within five or ten minutes. Ask them to answer questions such as “What does my company do?” or “How will my business resolve the problem?”. The goal is to determine if it is simple to understand.
How to write a strong executive summary
Your executive summary is going to have a lot of work. Make sure your executive summary is ready to grab attention and inspire action.
Keep it short
Your executive summary should be short for the same reasons. A one- or two-page summary is usually sufficient for most business plans. It will almost never exceed 10% of your entire business plan. It’s a good idea to keep the summary concise while being thorough.
Avoid using useless jargon
Jargon that is not useful, such as “industry leading” or “bleeding edge”, does not add substance to your argument. They are at best extra words which slow down readers. They’ll at worst hurt your credibility.
Differentiate yourself clearly
Offer a “white glove” or low-cost service. Will you offer a service that other businesses do not? Customers, lenders and investors should be able to tell what your differentiation is by reading your executive summary.
Magic Spoon produces breakfast cereals that are tasty for kids, yet healthy for adults. On their About Us page, they lean into this product comparison.
Add Social Proof
Social proof is a collection of testimonials, ratings, and referrals from customers who have praised your business. You can sprinkle positive feedback if you already have any to show that your business is the one people are looking for.
Make it skimmable
Use bullet points and subheaders as a way to make your point to those who are skimming the document. The reader should be able recite all the main points within 60 seconds.
Consult your business plan directly
The executive summary is a guide that you can use to reference your business plan. You should call out any additional financial information in your plan that is not included in the executive summary. The reader can then select specific sections of your business plan based on their interest.
Example of Executive Summary
It is helpful to visualize the whole process before you begin a new project. Here is an executive summary that I wrote for a fictional business called Nirvana Studios. Use this template to create your next executive summaries.
Nirvana Studios executive summary example
Nirvana Studios, a boutique health and wellness service provider in New York City since 2016, offers affordable services to the community.
In these communities, people regularly wait in line for Reiki, sports massaging, yoga and nutritional classes. A recent survey revealed that people from all generations consider holistic wellness essential for their long-term health.
There are very few options for New Jersey residents with middle-incomes to get these services. Local providers are geared towards high-income clients. The majority of the population cannot afford to pay for holistic wellness.
Nirvana Studios, by leveraging its proven and profitable business model, its streamlined technology stack and its advantageous vendor relationships, can bring Reiki to New Jersey’s neighborhoods in need. We expect a high demand for these services – especially when they are offered at prices that the average plumber or office worker can afford.
A record for successful growth
In 2015, Nirvana Studios co-founders Imani Evans and Rosa Diaz–themselves yoga and Reiki master instructors–realized that they couldn’t afford the classes they taught. Diaz and Evans created a business plan with the help of business consultants, real estate experts, and technology specialists to solve the problem.
Nirvana Studio can now offer similar services to those of its competitors, but at a discount of 30%.
Nirvana quickly expanded to 20 locations in the five boroughs thanks to its combination of highly-experienced instructors, beautiful studios and affordable pricing.
Unmatched Investment Opportunity
Nirvana Studios is a great investment opportunity.
There’s been a surge in interest for holistic health. Recent Trudential Insurance research showed that 93% their clients want more access to yoga classes and stretching. Social media mentions about preventative health have risen by 483% in the last two years.
Nirvana has the perfect opportunity to grow within this environment of increased need. The projected net profit of the New Jersey locations will be over 45% due to the dramatically lower operating costs. This is based on a client pricing of 25% less than other studios.
In the first year of operations, it is expected that class fees at 10 new locations will generate $50 million. Nirvana is also expected to generate $5 million in retail sales of branded apparel and products at an 80% margin during the first year full of operations in New Jersey.
Financial requirements to expand
Nirvana Studios needs to invest $5 million dollars in order to maximize growth opportunities on the New Jersey Market. The extra funds will be used for long-term leases and to outfit physical locations. They will also purchase equipment and pay marketing costs until the studios become operational.
The investor will receive 10% ownership of Nirvana Studios NJ LLC, a sub-company of Nirvana Studios Inc.
The Right Plan at the Right Time
Nirvana Studios’ mission has always centered on providing holistic wellness through operational excellence to as many people as possible. Your investment will accelerate that mission and make services needed by thousands of people available.
Nirvana Studio’s expansion to New Jersey is a great opportunity for the company to take advantage of an unprecedented growth trend.
Make your executive summary compelling
Writing an executive summary that is effective requires a combination of creativity and business sense. Here are some tips you should keep in mind as you work.
- Keep in mind that an executive summary is meant to persuade, as well as inform.
- Your business plan should follow a structure
- Include the most important information but avoid unnecessary jargon
- Make it easy to read by keeping it at one or two pages.
- Write in a professional voice and make your introduction interesting
The post How To Write A Persuasive Summary (The One Example That You Must Steal) first appeared on WordStream.