What is an executive summary and why is it important?

By Callie Leff3 min read · Posted Apr 11, 2025

68
Views

executive summary

SME Loans, "Business Plan UK", 2019, via Flickr

Have you ever heard the term ‘executive summary’ and wondered if you should be adept at writing one? An executive summary is an extremely important writing skill for anyone in the business space, and this article will explain the basics of what goes into one, the formatting, and the goals that you should have in mind when drafting your executive summary.

What is an Executive Summary?

An executive summary is a document that highlights the most important key points from a longer document; such as a business proposal or a pitch. An executive summary is typically 10-20% of the base document in length. Thus, if the proposal that the summary is for is 20 pages long, the executive summary should be roughly four pages. However, executive summaries are often as short as 1-2 pages, even for longer base documents, as their purpose is to provide information succinctly and efficiently.

Why is an Executive Summary Important?

The purpose of an executive summary is to condense the essential information of a proposal for readers who may not have time to thoroughly read the entire thing. Brevity and clarity are of the utmost importance when writing an executive summary. You want to get your point across clearly and convincingly for possible investors or higher-ups at work.

Who is the Audience?

The readership of an executive summary will differ depending on the base document the summary is for, but considering that executive summaries are typically used for business proposals, your intended audience will likely be potential investors or supervisors in a professional setting. Given the readership of an executive summary, the tone must be professional and credible.

What are the Key Points?

Perhaps the most important points to include in an executive summary are the problem that your proposal is addressing, and how your plan will effectively fix it. The executive summary should be compelling enough that readers feel it is worth their time to read the full proposal or business plan, and hopefully, back your endeavor as well. Starting your executive summary off with a clear outline of why your plan/idea is relevant and needed gets to the crux of your proposal efficiently. Some other key points to include in an executive summary are:

  • The beneficiaries of your plan: who needs your business, and why? Who will the consumers/audience be?
  • Financial gains: projections based on real calculations that your investors can count on in the coming years.
  • Why you? What makes you different from other individuals/companies who may be endeavoring to address the same issue?

Conclusion

Now you know the basic components that are required for an executive summary. However, one of the most important aspects of an executive summary is personalizing it for your business model and your specific audience. Make sure that you are thoughtful about the space that your business is occupying, and the lens through which your executive summary highlights the benefits you can provide. Use the guidelines outlined above as a jumping off point to make your executive summary memorable.

About The Author

Callie Leff

3
Articles
97
Total Views
0
Total Likes
0
Total Shares

See more posts by Callie Leff

Comments

Your generosity fuels innovation and drives success!

Our resources are assembled by a team of entrepreneurs who donate their time and energy to Pitch Labs to ensure that entrepreneurial resources are available to everyone. Unfortunately, we can't avoid major expenses such as website hosting fees. To ensure our resources remain free to access and use, we rely on donors who are able and willing to give back. Consider donating to be a part of the Pitch Labs mission today!

More in Basics


Basics » Business Plans

How to describe your product or service in your business plan

by Warren Patterson ·Apr 21, 2025

23
Views

A good product or service description is important in business as it helps drive traffic, generate leads, and build sales. This article looks at what’s included in a product or service description. Read to learn more. Read more

Basics » Getting Started

What is a lean startup?

by Ana Bacioiu ·Nov 25, 2024

218
Views

Understand the mindset of lean startups, where efficiency meets customer-centric innovation, and discover how you too, can build, measure, and learn your way to success. Read more

Basics » Business Plans

How to Find Your Target Audience

by Degreat Michael ·Oct 21, 2024

520
Views

Struggling to figure out your ideal customers? In 5 steps, you’ll discover how to attract your target audience– and the effective tools you can use Read more

Basics » Getting Started

How do I define my target market?

by Ana Bacioiu ·Oct 18, 2024

267
Views

Discover how to hit the bullseye by defining the target market for your business idea. Elevate your strategy from guesswork to precision art! Read more

Recent articles


Operations » Product & Service Management

What are revenue streams?

by Sunnie Souza ·Apr 30, 2025

5
Views

Revenue Streams are the various sources of operational, and non-operational revenue for a company. Read more

Financial » Accounting

What Is The GAAP?

by Callie Leff ·Apr 28, 2025

6
Views

GAAP is a set of accounting principles for public businesses, non profits, and government agencies to ensure transparency and accuracy. Read more

Operations » Product & Service Management

How to Manage Customer Relationships

by Deborah Taiwo ·Apr 25, 2025

18
Views

This article explores how businesses can foster genuine connections with their customers to build trust, drive loyalty, and ensure long-term success. It provides actionable steps for understanding and delighting customers. Read more

Operations » Management

Mastering Data-Driven Decision-Making for Your Business

by Christina Molitor ·Apr 23, 2025

16
Views

Data-driven decision-making relies on inputs such as customer preferences, edge analytics, and AI, prioritizing evidence over intuition and helping automate the decision making process. Read more

Join Our Community


Looking for something else? Get your questions answered in our free online learning community!

Entrepreneurial Resources


Jumpstart your next business with our free resource library.

Disclaimer


Our organization cannot give out official legal/fiscal guidance. All articles are written by volunteers and it may be beneficial to contact professionals to assist your understanding of the information and to guide your action. Pitch Labs bears no responsibility for the results of actions taken based off of article content or any other form of assistance given.