Executive summary example: How to write a business overview

An executive summary is a condensed version of a longer business plan, that gives the reader a brief overview of the document's essential points. You could think of it as a formal elevator pitch.

It's usually between 5% and 10% of the main document's length, meaning there's little room for explanatory language and additional information. It's all about conveying the basics in an easy-to-understand way.

Executive summaries need to capture reader’s attention and make them want to learn more. Investors typically take 30 seconds to scan executive summaries for business plans before deciding to read further, so it is important to engage the reader from the beginning.

In this article, we explore the key elements of an effective executive summary, explain how to create one, and provide some examples to get you started.

• Key elements of an effective executive summary
• Executive summary examples
• Tips for writing an effective executive summary
• Common mistakes to avoid
• FAQ

Key elements of an effective executive summary

To make your executive summary engaging, present only the information essential to understanding your project. It should contain the following elements.

• Clear and concise language. Write in simple language, using no jargon, to be as clear and concise as possible.

• Problem statement. Include a problem statement that explains what your proposal aims to overcome and why the project is necessary.

• Proposed solution. Use actionable statements that deliver proposed solutions to the problem you're presenting.

• Supporting data or evidence. Show that you've researched the hows and the whys to prove your plan has a market and can be profitable.

• Key findings or recommendations. List a few insights you uncovered during your research. Provide recommendations that show you've taken this information into account.

• Necessary resources. Outline the resources you need, including your budget, to show that your accounts are accurate and that you're a good prospect for investment.

• Background. Discuss who is on your team and where their expertise lies. Your audience needs to trust your teamwork. This information will give your proposal a human element.

• Call to action. Ensure the summary concludes with a call to action (CTA) explaining the next steps you'd like to take.

Executive summary examples

There is no single, one-size-fits-all executive summary definition. Summaries often vary in size, scope, and content, depending on the nature of your project and business. A brief product summary should be shorter than the findings from a large research study, for instance. Take a look at this executive summary from the Australian Government to show how complex these summaries can be.

Regardless of the reason for your summary, keeping it concise is essential, especially if you're pitching your business to investors. Below are three executive summary examples that you can use for inspiration.

Business plan executive summary

Here's a standard executive summary template to follow for a business summary.

• Company description. Describe your company's background to show your audience what your business does and its core values.

• Market opportunity. Describe the hole in the market your business is looking to fill. Briefly detail the research process that helped you find this gap.

• Product/service overview. Give a brief description of the products or services your business offers.

• Financial projections. Predict your likely net and gross profits over the next five years, showing you have long- and short-term plans.

• Funding requirements. Clarify how much investment your company needs for expansion to provide what you outlined above.

As an example, imagine a startup company aiming to work on providing bikes to university students.

Example business plan executive summary

Sydney Cycle Hire

[Company description] 

Sydney Cycle Hire provides bikes to students on long-term loans for a flat rate or monthly fee. We offer a variety of bicycles, such as road bikes, hybrids, and electric bikes, which are ideal for people with a longer daily commute.

[Market opportunity]

Currently, bicycle users in Sydney usually pay hourly hire rates or own their machines. Many students studying a fixed-term degree of three to four years don't want to own bikes beyond this period. Instead, they tend to switch to cars.

Bikes are cheaper to run than cars when students have limited funds, making this an excellent opportunity for our target audience. Currently, no businesses in Sydney use a similar model, although successful models exist in Melbourne and Oxford, England.

[Product/service overview]

We offer a range of bicycles for hire. Our charges depend on the brand and model of the bike and whether the customer wants to pay upfront to hire a bike for three years or on an annual or monthly fixed rate. We also offer bi-annual maintenance and a complementary puncture kit within this price, with insurance against theft and accessories packages as optional add-ons.

[Financial projections]

In Year 1, our projections are $30,000 per annum gross profit, with 500 customers. This will translate to a $7,000 net profit in the first year. By Year 5, we project an increase to 1,000 customers, making a gross profit of $60,000 annually, translating to a $35,000 net profit.

[Funding requirements]

We request an additional investment of $20,000 to buy the units we initially require, with a prediction of the business becoming self-sufficient by Year 2.

Project proposal executive summary

A project proposal has a more limited scope than a business proposal because it covers a specific timeline and goal. It should serve as a compelling preview of the overall proposal. Here's a potential structure.

• Project overview: outline the basic details of your project.

• Objectives: explain the objectives and goals you hope to achieve.

• Timeline and milestones: outline your timeline and how you'll measure success.

• Budget summary: detail the costs and financial considerations.

• Expected benefits and return on investment (ROI): outline why your project matters.

This summary should demonstrate a deep understanding of the client's needs and wants and present a personalised solution. Here's a fictional example of a company-wide software implementation project.

Example project executive summary

GrammarType implementation

This project aims to install GrammarType onto all laptops and desktops across the company's teams and train all staff to use this software.We aim to ensure a smooth rollout of this software, implementing overnight updates and patches in working-day clinics. We also want to train all staff to use GrammarType so every team can use this software for proofreading.

Week 1: A consultation period with staff will begin.

Week 2: The overnight installation of GrammarType will ensue, with daily clinics for patches.

Week 3: Each team will have a timetabled slot for in-house training, with additional twilight sessions for catching up.

Week 4: A staff survey will follow, with results to evaluate the success and continued use of the software.

GrammarType costs $120 per annum per person in subscription fees, not per device. It offers a 20% discount for company-wide rollouts. With 3,300 employees for subscription, this will amount to a total of $316,800.

We can expect an increase in employee productivity of 40%, with less time dedicated to proofreading and returning work for editing. This offers the potential for up to 20% more articles, eliminating the need for the projected additional hiring of 30 more employees within the next two years.

The ROI will likely average $525,000 per annum over the next two years, resulting in a net profit of $208,200.

Research report executive summary

Professionals often use research reports for market research studies. Research reports typically present findings of large-scale surveys, summarising  the points for the reader to save time. They should contain recommendations for how to use the collected data.

• Research objectives: What were your research objectives?

• Methodology: How did you carry out your research?

• Key findings: What did you discover during your research?

• Conclusions: What conclusions can you draw?

• Recommendations: What are the next steps you need to take?

This executive summary should be a standalone document. It shouldn't require additional information to help the reader understand it. Here's an example of a market research report.

Example research report executive summary 

Breakfast cereal market research

This survey seeks to discover which types of cereal are most popular in various cities across Australia to help streamline distribution and give insight into consumer habits.

We recorded the units of cereal sold in Woolworths, Coles, ALDI, Costco, and Metcash stores in Sydney, Melbourne, Adelaide, Perth, and Brisbane over the course of three months. To obtain qualitative data, we also sent surveys to savings card scheme members who had breakfast cereal purchase data within the time frame.

We found that the Weet-Bix brand sold the most units overall, dominating the market at 20%. However, Sultana Bran had the largest number of units of any individual cereal type.

In terms of outliers, people in Sydney were more likely to purchase cereals with a higher sugar content, such as Coco Pops and Crunchy Nut. The most popular cereal choice in Melbourne was Uncle Toby's Quick Oats, with research indicating a desire to consume hot food due to the climate.

Overall, the most popular cereals, in terms of mean and mode, were those focusing on marketing themselves as health conscious. Weet-Bix and Sultana Bran made up a significant proportion of cereal purchases, suggesting these are currently the most popular cereals among consumers in Australia.

With Weet-Bix regularly selling out in CostCo and Coles, increasing distribution would benefit these stores. Cereal brands wanting to improve their sales should focus on lines that highlight perceived health benefits and market themselves as filling and high in fibre.

Tips for writing an executive summary

Even though it appears at the beginning, you should write your executive summary after you have compiled your report or research. You can then summarise your document more easily because the content will  be fresh in your mind. Plus, you won't need to correct your summary later on if the project changes.

Spend time logically ordering your ideas before you begin writing so they’re easy to follow. Make your opening engaging to engage your reader, and then keep every point relevant to your plan.

Make sure your summary is clear and easy to understand. Ensure your language is jargon-free. Illustrate your ideas with compelling visuals and back them up with relevant data.Ensure you take the time to proofread your summary for errors and make any necessary edits.

Common mistakes to avoid

Here are the four most common mistakes when creating an executive summary.

• Writing too much. The most common mistake in executive summaries is excessive length. The summary won't capture the attention of potential investors if it is too long or contains too much detail. While some company information is necessary, only the bare minimum needs to be included. The focus needs to be on the benefits to investors/stakeholders.

• Using too much jargon. Your reader should be able to understand the document easily, so avoid using jargon and unnecessarily complex language. Tailor your approach to your specific target market. Aim to use language your audience will understand and resonate with.

• Making unsubstantiated claims. Focus on collecting initial information before you start writing. The more you can back up your ideas with facts, the easier it is to make an impact and drive action from your audience.

• Forgetting a CTA. If your summary doesn't include a call to action, your audience may move on to the next proposal without thinking more deeply about yours. Close with a clear CTA that gives the audience the next steps you want them to take.

An executive summary is a concise written overview that summarises a longer report, research project or proposal – its job is to provide a snapshot of key information to stakeholders. The structure and content of an executive summary depends on the individual project, but it should always make the content of the entire document easy to read and understand.

FAQ

What is the average length of an executive summary?

The average length of an executive summary is 10% of your primary content. This gives enough wordcount to get all key points across without leaving out any important information.

What are the essential components of an executive summary?

Some of the essential components of an executive summary are: an introduction, research findings, data to back up any claims, the main points of the document it summarises, and a CTA.

What are common mistakes to avoid when writing an executive summary?

Common mistakes to avoid include adding too much detail, using industry-specific jargon, and not proofreading for errors or double-checking facts. 

How can a well-written executive summary impact business success?

A well-written executive summary grabs the attention of stakeholders, whether they’re potential investors, senior leadership, or clients. Effective executive summaries make it fast and easy for decision-makers to identify opportunities for business growth, which can impact a company’s success.