Executive summary | Meaning | Contents of Executive Summary

What is an Executive Summary?

Executive summary is a brief which gives a bird’s eye view of the business plan. Many investors, bankers, managers and other readers analyze the executive summary to determine quickly whether the venture is of any interest to them.

Executive Summary - Meaning, Contents
Executive Summary – Meaning, Contents

Contents of an Executive summary

The executive summary usually contains a paragraph or two covering the following aspects:

1. Description of the business concept and the business

This part of an executive summary contains a brief description, in about 25 words, mentioning the specific product or service.

2. The opportunity and strategy

Summarizes what the opportunity is, why it is compelling and the entry strategy planned to exploit. The information on description of industry, market size, demand, supply, growth opportunity, etc are included in this part of Executive Summary.

3. The target market and projection

Identify who the consumers will be, what position the product will occupy in the market. The structure of the market is to be described in this part of the summary.

4. The competitive advantage

The Executive Summary should indicate the competitive advantage your product or service has over the competitors. The benefits and the additional value and benefit the consumers will have, using your product.

5. The economics, profitability and harvest potential

An Executive summary should specify the anticipated gross margin, operating margin and profit on the basis of forecast sales and costs.

6. The team

Executive summary should summarize the relevant information and experience, know-how and skills of the lead entrepreneur and any other team member. The entrepreneur’s qualification, experience, age, and details pertaining to previous achievements.

7. The offering

Executive summary should briefly indicate the amount of equity or debt financing needed, and the investment of the company. How the targeted investor, lender or strategic partner will achieve the expected rate of return should also be included in the executive summary.

8. Exit route

Executive summary should also specify how will you withdraw from the business.