Last updated on September 13th, 2023 at 11:21 am
Important components of an executive summary are business name, location, mission statement, a brief description of products or services, a summary of company objectives and goals, financials, growth potential, and funding request (if you’re seeking investors or loans).
Table of Contents
What Is An Executive Summary?
In every professional business plan, there must be a prefix or a part that concisely gives a picture or snapshot of the key points contained within the document, that part is known as an executive summary.
Why It Matters
It is at the beginning of a business plan, which introduces the larger document and highlights its most important aspects. For us at InfomediaNG, executive summary allows potential investors and other stakeholders to quickly grasp the essence of the business.
What Should Be Included In An Executive Summary
In ascending order, a professional business plan should have the following sections:
- Business name
- Location
- Mission statement
- Brief description of products/services
- Summary of company objectives and goals
- Financials
- Growth potential
- Funding request
Business Name:
This is the title of the company. It’s the first thing that readers will see, so it should be clear and represent what the business stands for.
Location:
This specifies where the business is situated and may also include other locations if the company has multiple branches. For some businesses, the location can be vital, especially if it offers strategic advantages.
Mission Statement:
This is a concise declaration of the company’s purpose. It should encapsulate why the business exists, its overarching goals, and the values it stands for. A good mission statement can inspire trust and interest from potential investors.
Brief Description of Products/Services:
This is an overview of what the business offers. It should give potential investors a clear idea of what to expect from the company.
It is very important to highlight any Unique Selling Points (USPs) or distinctive features that set the business apart from competitors.
If the business is a startup, it’s a good idea to briefly explain the problem it plans to solve, providing answers to “why”, “how” it plans to solve an existing problem.
Summary of Company Objectives and Goals:
This is another important section of a business plan that outlines what the business aims to achieve in both the short and long term. Objectives are specific and measurable, while goals can be broader visions for the company’s future.
Some objectives might include specific sales targets, expansion plans, or milestones in product development.
Goals could be more general, like becoming the market leader in a particular region or establishing the brand as synonymous with a specific quality.
Financials:
This part should provide a snapshot of the company’s current financial position and projections.
Key metrics might include current revenue, projected revenue, profit margins, and major expenses. It can also mention any significant financial achievements, such as profitable quarters or reaching particular sales milestones.
Growth Potential:
This section focuses on focuses on the business’s prospects. This section should instill confidence in stakeholders that the company has the potential for robust growth.
It should mention market trends, research, or any other relevant data that supports the company’s growth projections. You can outline strategies that in place your business wants to capitalize on, if there any.
Funding Request
Funding request section is essential when presenting the plan to potential investors, lenders, or other financial stakeholders.
Why you should include funding request in the executive summary:
While some sole proprietorships may not include funding requests, for partnership businesses, here is why it should be included:
Immediate clarity: By stating the funding request upfront in the executive summary, you immediately clarify the primary purpose of the document and set clear expectations for the reader.
Highlighting investment needs: The funding request showcases the capital required to realize specific business objectives, be it starting a new venture, expanding operations, launching a new product line, or overcoming a financial challenge.
Terms of funding: Besides the amount, this section can also briefly touch on the type of funding being sought (equity, loan, convertible note, etc.), how the funds will be utilized, and any other critical terms.
Demonstrate confidence: Requesting funding in a straightforward manner demonstrates confidence in the business’s viability and potential return on investment.
Quick reference: For potential investors who review multiple proposals, having a clear funding request in the executive summary allows for easy reference and comparison with other opportunities.
Importance of an Executive Summary
First impressions matter:
For many stakeholders or lenders, the executive summary is their first introduction to your business. A well-written executive summary can pique their interest, while a poorly crafted one can discourage them from reading further.
Captures key information:
It enables stakeholders to quickly ascertain the company’s mission, goals, strategies, and financial prospects without reading the entire document.
Engages potential investors:
Investors often “scan” through multiple business plans in search of promising ventures. A compelling executive summary can ensure your plan stands out and motivates investors to consider your proposal.
Saves time:
For busy lenders who might not have the time to read the full business plan, the executive summary provides a condensed version of the most critical information.
Clarifies business focus:
Writing an executive summary forces entrepreneurs to distill their business idea and strategy down to its essence. This exercise ensures clarity in the business’s direction and purpose.
Acts as a teaser:
An intriguing executive summary can entice potential investors to explore the detailed sections of the business plan, increasing the likelihood of them understanding the business depth and potential fully.
Useful for various stakeholders:
While it’s vital for potential investors, the executive summary also serves other stakeholders, including employees, suppliers, and partners, offering them a clear overview of the company’s objectives and strategies.
Basis for other materials:
Elements of the executive summary can be repurposed for other promotional materials, such as pitch decks, brochures, or website content.
Guide for future reference:
As businesses evolve, revisiting the executive summary can help entrepreneurs stay aligned with their original mission and objectives, ensuring consistent strategic direction.
Sample Of Executive Summary
Executive Summary for Infomatrix Logistics Solutions
Business Name: Infomatrix Logistics Solutions
Location: 160 Commerce Drive, Allen Avenue, Ikeja, Lagos, Nigeria
Mission Statement: To provide businesses with efficient, reliable, and technologically advanced logistics solutions that streamline operations and enhance supply chain transparency.
Brief Description of Services/Products:
Infomatrix Logistics Solutions offers a comprehensive suite of logistics services catering to businesses of all sizes. Our services range from warehousing and inventory management to freight forwarding and last-mile delivery.
Our proprietary software ensures that clients have real-time access to their shipment status, enhancing transparency and predictability. A unique feature of our service is the integration of green technologies, ensuring a reduced carbon footprint for our operations and our clients.
Summary of Company Objectives and Goals:
Short-term Objectives:
- Expand our warehousing facilities by 30% within the next 12 months.
- Increase our fleet by incorporating 50 additional eco-friendly trucks.
- Partner with at least 20 new major e-commerce companies for last-mile deliveries.
Long-term Goals:
- Establish Infomatrix as the premier logistics provider in the southeast region within five years.
- Reduce overall operational carbon emissions by 40% over the next five years.
High-level Overview of Financials and Growth Potential:
Currently, Infomatrix boasts an annual revenue of $10 million, with a profit margin of 18%. With the projected expansion and growing e-commerce partnerships, we anticipate a revenue growth rate of 20% annually over the next three years.
Our investments in eco-friendly technologies not only position us as an environmentally responsible choice for clients but also promise cost savings in the long run, enhancing our growth potential and profitability.
Target Market and Competitive Advantage:
Our primary target market includes e-commerce businesses, manufacturing units, and wholesalers in the southwest region. Infomatrix’s competitive advantage lies in our:
- Advanced tech solutions providing unparalleled transparency.
- Eco-friendly operations, appealing to environmentally-conscious businesses.
- Dedicated customer service team ensuring seamless communication.
Summary of Management Team:
Janet Adeolu, CEO: Over 20 years in the logistics industry, previously a senior manager at Excellent Fleet Inc.
Raymond Smith, COO: An expert in supply chain optimization with a track record of improving operational efficiencies by 30% in his past roles.
Lilly Opy, CTO: Spearheaded the development of our proprietary logistics software, with a background in tech solutions for major logistics firms.
Funding Request:
We are seeking an investment of $5 million to fund our expansion plans, particularly in warehousing and our eco-friendly fleet enhancement. In return, we offer competitive equity/debt terms that promise robust returns, backed by our solid financial track record and future projections.
Conclusion:
Infomatrix Logistics Solutions is poised for significant growth, leveraging advanced technology, a commitment to sustainability, and a seasoned management team.
We invite you to delve deeper into our business plan to explore the exciting opportunity Infomatrix presents for potential investors and partners.
The 2-page executive summary is ready to download here for free.
Takeaways:
An effective executive summary should be:
- Concise: Typically 1-2 pages long.
- Engaging: Written in a manner that grabs and maintains the reader’s attention.
- Informative: Even though it’s brief, it should provide enough information to give a clear picture of the business.
- It should be compelling enough to make potential investors want to continue through the rest of the business plan.
Finally, important areas to include in an executive summary of a business plan are business name, location, mission statement, a brief description of products or services, a summary of company objectives and goals, financials, growth potential, and funding request (for a business that’s seeking investors or loans).
