The Executive Summary
What are two main purposes of the Executive Summary? What value does the Executive Summary have to the reader?
The two main purposes of the Executive Summary is to show the reader how your product will solve the customers problem and what you hope to gain from the reader whether it be capital or other resources. An executive summary may be the only section a reader uses to make a decision on the proposal. It should explain the market environment, the special and unique business opportunity, the key strategies for success, the financial potential, the management team and the resources or capital being requested.
Thanks, Elizabeth, for your observations regarding the Executive Summary! Your point is excellent regarding the Executive Summary's importance.
As you reference, in many cases it can be the main instrument, used by a customer, or by a financier or capital/investment provider for making a sound business decision. It not only summarizes the plan, but draws special attention to the factors and key points made to entice a decision in the company's or institution's favor.
Of the things you listed as part of the summary, I think the one sometimes not emphasized enough is the uniqueness of the business opportunity. In this competitive day and time, not only must we address how a need may be met, but how our product or service UNIQUELY satisfies, and even goes beyond, the normal expectations.
Jay Hollowell
ML144 Facilitator
The executive summary should allow an overview that reflects the most important points of the plan to be executed, however is a reporting mechanism that shows how the plan manager has control over all situations, including the expected results. So the two most important objectives of the executive summary and report are summarizing and informing
Not only should one be able to show an uniqueness when bringing fourth a business opportunity but help me understand more why one omit your financial assumptions. shouldn't we show what it is we wld like to profit?
The main purpose of the executive summary is first, to provide a formal statement outlining the company facts as part of a legal document, and two, to provide a brief understanding of the proposal. The second purpose is no easy task, it requires thorough details in an effort to outline / describe the industry, environment, opportunity, strategies, financial potential the team and the resources needed, but in an abbreviated fashion. To accomplish this piece successfully, you will need to be concise and be sure to outline the key points of all sections of your overall plan.
The value this adds, is that is provides the reader with a quick understanding of your proposal. In today’s fast paced environment, it enables the reader to perhaps update others with a brief yet detailed version that will help them make a decision whether or not to partner on the investment. Critical to the summary, it allows you to capture interest and create excitement. The mission statement should complement this section and be written in a way that it draws people into your idea. Excitement is key, and can make all the difference when weighing potential risk.
The executive summary is a more compact way of stating all the points of the business plan. For some this may be the only part they use to make a determination of whether they are on board with the idea or not
The most important value is the efectiveness of the summary, because if a summary is a good comprise of the plan, could be a great help for accelerate processes
Roselyn,
Good point, we have seen many times when the executive summary not only set the stage for the full business plan, but in itself was the most deciding factor.
The purpose of writing the executive summary is to provide key information and an overview or preview to a reader who may or may not have time to read the whole report carefully. Here the reader can learn the main points of the business venture including the industry and market environment; the special and unique business opportunity; the key strategies for success; the financial potential; the management team; and the resources or capital being requested. Since the executive summary might be the only part a reader has time to read, it’s important that it draws attention to the key points made to entice a decision in the company’s favor. The audience reading it might be someone who makes funding, personnel, or policy decisions and needs information quickly and efficiently.
The purpose of the Executive Summary is to give the intended audience an understanding of what is in the proposal in form and language and to instill confidence and interest in the business. The Executive Summary should leave the reader with the understanding the business clearly understands the opportunity, will supply a unique product or service, and has the team to manage the risk and achieve a good return on the investment being requested in the plan.
Good points Carlos. The effectiveness of Executive Summary is ultimately measured by getting the audience to read plan and agree to support the venture.
I agree that uniqueness should be an important emphasis in the Executive Summary. This is important even if the uniqueness is looking at an old problem or existing way of doing business in a new perspective. Uniqueness is often incremental. Increments can be very profitable.
