Everyone entering the business knows the importance of a good plan. It won’t be a good idea to barge into something new without proper knowledge or planning. However, a perfect business plan might not be enough. If someone provides a huge business plan for readers, this not only is time-consuming but also discourages the readers. Also, this kind of written piece may lead to chaos rather than any procession. This is where a compact but precise document comes handy. An executive summary not only aids with a precise plan but also saves time and work.
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How to Write a Good Executive Summary
What is an Executive Summary?
An executive summary is a brief document that provides a summary of long reports or proposals related to businesses reading which one will be able to easily learn about huge materials without the need to read it entirely. The summary includes a proposal, information, analysis, key findings, and finally conclusions which help to make decisions.
It summarizes a business plan that includes details of taking loans, funds, and suggestions of business partnerships. It is in general a compact version of a full document unlike an abstract. Also, it is written for business-related issues and is one of the important documents of a business.
These kinds of written pieces are more common for traditional business ventures and investment systems but will also be helpful for businesses with small capitals, such as one created using bootstrapping.
There are other forms of business documents like pitch decks and business plans. Business plans are the elaborate forms of business documents with details and research. Pitch decks provide visual aids along with business summaries.
Why is it Important?
An executive summary is important because it provides short but precise details of a business plan. It removes complex data, charts, or information but provides the ones that are needed for quick understanding. It also shows different aspects of the business to have a piece of good knowledge about better sales, good locations, and other profitable approaches.
Lastly, executive summaries are a means of effective communication tools in both academia and business. After consideration of the importance of an executive summary, it is now necessary to know the steps to write a good one. There are also some factors to keep in mind before writing a good executive summary. Having a clear knowledge of a good executive summary may lead to effective outcomes.
Format of a Good Executive Summary
Introduction: This needs to be compelling to the audience for reading the rest. It mainly includes background information and subject matter about the business plan. References might be given as well. The paragraph needs to be concise and simple, with sentences that are easy for the audience.
Table of content in a list: This includes the elements that are provided in the summary. A table helps to locate particular areas.
Explanations: This is the main body of the summary. It is be written in separate, compact paragraphs. Details of the business strategies, research, analysis, key findings, and other information are given here. There are descriptions of the management, sales items, and in some cases, funding requests. A financial condition or approach is also given. Any problem located in the plan is explained with the necessary concern towards it.
Recommendations: A possible solution to the problem needs to be provided. The solution should be explained properly with the justification of its positive outcomes.
Conclusion: A final paragraph is written for giving the final words of the summary. This includes an overview of all the data, findings and suggestions of the summary. The importance of the business plan is stated with strong words in this paragraph.
There are certainly other things to consider after writing an executive summary.
- Reviewing the written document is essential for checking grammar or factual mistakes. Also, it’s important to look for any missing data.
- The language is mostly formal and needs avoidance of unnecessary phrases or information.
- The summary should be captivating and stand out so that the effort is successful.
- The writing doesn’t need to be creative but is better to be written in own language. In this way, it gets more relatable to the reader. Also, the writing should be in a positive tone with the problems issued and the claims provided.
- As always, the goal needs confirmation. If the focus is fixed, then one is capable of proceeding forward with the executive summary.
- The summary needs to be plain and simple. It’s better to avoid overwriting and make the document more like an advertisement.
- Also, it shouldn’t resemble an abstract. Facts and information need to be included, but adequate amounts.
- The summary should include explanations of research, results and possible suggestions. Even though the document is in a concise form, there should be no compromise on the main ideas and data that is necessary to be provided.
- The language of the summary needs to be convenient for the target audience.
Although an executive summary seems to be a great way of producing a business proposal, it has some lacking. One obvious issue is its simplicity in the structure that may cause readers to ignore the complexities of the plan. Since it is a compact version of a huge document, there are chances that the readers would miss the nuance of the proposal.
This might also reduce the importance of the claims and recommendations. So it is necessary to write a good executive summary following the guidelines and steps.
Any method has its positive and negative areas. An executive summary is an easily written document that saves time and allows the person to proceed fast. If readers overlook any important data or information, this helps the person to decide on his business venture to find suitable partners or supporters. A good impression from the readers enables the entrepreneur to think freely of a profitable business. A good executive summary also ensures the skill of a good businessman.