What is an Executive Summary?
Before you consider the dos and don’ts of the executive summary; it’s important to understand the purpose for writing an executive summary.
For beginners, the executive is an document that provides an overview of the big picture. In other words, it condenses your plans. This document is structured in such a way that the reader can understand the big picture in 2 – 4 sentences. It provides the reader with a summary of your business schemes and plans. This document is important because it is usually the first report requested by investors or banks.
What is an executive summary? An executive summary is a compact document that lists your business plans. It is a brief overview that focuses on the main topics of your plans.
The development of an executive summary usually begins with the strategic thinking process. This marketing tool enables your organization to identify insights and opportunities. In addition, these findings will help you develop an authentic business strategy. The findings will also help you create a reliable marketing plan.
The subsequent phase involves strategic planning. This phase begins once you’ve determined which competencies you can capitalize on. As such, you can develop a more accurate understanding of the capacity of your organization.
The first section of the summary should include a brief description of the products and services you offer. It should include a brief description of the problems that your products or services solve.
Your product and service description should describe the problems your product(s) or services solves. It should also tell the audience the social, economic, financial and environmental solutions your product(s) and services provide for customers.
However, it does not mean that your company must tackle a major social problem. But it should signify why customers need your product or services or the opportunity you’re trying to address through them in the market.
3 Incentives to Develop an Executive Summary
Keep in mind that each executive summary is unique in its own way, which creates a lot of confusion about its length. Some experts believe the executive summary should be extensive. While others believe that the business purpose of a company can be explained relatively quickly.
In general, there is a vague consensus that an ideal summary should be 1 to 4 pages long. To be precise, your executive summary’s length depends on the size of your business plan or report you’re drafting. For example, if you feel that your two-page summary does not cover the core of your story, then you may not have thought things through well.
The objective of the executive summary involves grabbing your reader’s attention. Your organization must have the ability to court the attention potential customers at all costs. Therefore, your content must be persuasive, and straight to the point. In other words, it must quickly captivate the minds of the readers to be effective.
Furthermore, developing this statement not only informs the audience, but also motivates the employees. It tells employees why they should work for the organization opposed to the competitors while simultaneously creating consumer awareness.
Stand Out in the Market
This is the time when you begin to build your summary and show the reader why it is valuable to spend time reading your report. Assuming your business has competition, like any other business, you need to find ways to stand out from existing brands in the market.
You could use techniques or tools that help you differentiate your organization by establishing unique prices, management styles, employees, or something else. Here you have to think about your core strengths and competences. Use short and concise keywords to present your ideas. Ensure your speech tone is to the point and accurate.
It is advisable to treat your summary as if you were striving to get a good first impression. It will not be unusual for your investor to make his or her first investment decision based on your summary. Therefore, this document must impress your company stockholders.
Secure Funding From Investors
It would be best if you showed your readers that you have done your homework and who is behind the business idea. If you’re seeking investments, how much is it that you’re looking for?
These factors vary from company to company depending on whether your business already exists or is a start-up. For example, an existing company can only give its annual turnover and growth over a certain period for financial purposes. But in the case of a start-up, investors usually need a brief description of future goals in terms of revenue or budget projections. You can make this part presentable by adding graphics and diagrams to make it easier for the reader.
To Sum Up!
In a word, an executive summary works by presenting the required information to readers in a holistic fashion. So, it would help if you present the most significant information to the ‘executives’ or other readers in your executive summary.