The executive summary is the most important part of a business document. It's the first (sometimes even the only) thing people will read and the last thing you should write. This summary is a brief summary of a document, provided so that busy executives who will be reading your document know exactly how much to read and what action to take.
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Method 1 of 2: The Basics
Step 1. Understand that an executive summary is a brief summary of a business document
In this case, "short" and "summary" are the keywords. The executive summary is by no means comprehensive, nor supersedes the original. The executive summary should be no longer than 10% of the original. Aim so that you can write between 5-10 percent.
An executive summary is different from an abstract. The abstract gives the reader a glimpse and orientation, while the executive summary provides the reader with an overview. Abstracts are more commonly written in academia, while executive summaries are used more for business purposes
Step 2. Make sure this summary adheres to certain structural and stylistic guidelines
The most authoritative sources who wrote executive summaries agree that certain structural and stylistic guidelines should be applied. This guide includes:
- Paragraphs should be short and concise.
- The executive summary should make sense even if you haven't read the original report.
- The executive summary should be written in a language appropriate to the target audience.
Step 3. Define the problem
The executive summary needs to clearly define the problem, be it supply chain management or an overseas marketing campaign. The executive summary, in particular, requires a clear definition of the problem because the document on which it is based, Requests For Proposals (RFP), is often written by technical people who have a poor understanding of conceptual issues. Make sure the problem is defined in clear and easy-to-understand terms.
Step 4. Provide a solution
A problem always needs a solution. In order to present a claim statement of purpose (and reasons for funding the venture), you need to come up with a solution that can effectively address the problem. If your problem is not clearly written, your solution will not make sense.
Step 5. Use graphics, pointers, and headings if the document is easier to read at a glance that way
An executive summary is not an essay that requires long blocks of text. If you can improve understanding or make a summary more readable at a glance, it's ok to use:
- Chart. A well-placed chart that accurately illustrates the characteristics of the client's problem can emphasize an important part of the summary. Stimulating their visual senses is often just as effective as stimulating their analytical senses.
- Points details. Long lists of information can be broken down into more digestible details.
- Title. Develop a summary theme, if necessary, using a title. This will help orient the reader as they sink into the summary.
Step 6. Keep your writing fresh and jargon free
Jargon is the enemy of understanding. Incidentally jargon is very popular in the business world. Words like "interface," "leverage," "core competence," and "platform critical" are words you should try to avoid. These words cover up their true meaning and can make your summary seem vague and pointless.
Method 2 of 2: Specific Details
Step 1. Start with the original document
Since an executive summary is a summary of another document, you will need to familiarize yourself with the original to be able to condense it into an informative and practical version. Whether it's a report, business plan, proposal, manual or other document, review the original and look for the main ideas.
Step 2. Write a short summary
What is the purpose of the company sponsoring the document or the original document itself? What's the coverage?
Example: "Women WorldWide is a non-profit organization that connects women around the world with effective solutions to domestic violence, while offering a support network for those who are victims of domestic violence. Although operating from its headquarters in Alberta, Canada, it has receiving referrals from women in 170 countries around the world."
Step 3. Make the "core" stand out
This section is probably the most important part of the entire executive summary. In two to three sentences, you are expected to tell the reader why your business is special. Why is the business worth checking, getting a business offer or cooperation from the person reading the summary?
- Maybe you have Michael Jordan as a customer and he has promoted your product on Twitter for free. Maybe you just signed a partnership with Google. It's also possible that you've just been granted a patent, or just made your first big sale.
- Sometimes a simple quote or testimonial will suffice. The key is to capture the reader's attention, make your business reputation look as good as possible, and entice the reader to read to the end of the document.
Step 4. Define the big problem
The first tangible ingredient of the executive summary is a discussion of the problem, so describe the problem your product/service addresses. Make sure the problem is defined as clearly as possible. Problems that aren't described in detail won't sound convincing, and won't make your solution as significant as you'd like it to be.
Example: "Los Angeles is crippled by traffic jams. Apart from the DC Metro area, Los Angeles has the worst traffic jams in the country. Not only is the smog and pollution caused by traffic jams reducing work productivity, increasing asthma rates, and slowly creates serious health problems. In LA there are more cars than people old enough to drive"
Step 5. Present your unique solution
The big problem is the easy part. Now you have to convince your readers that you have a unique solution to this big problem. If you can deliver these two materials, you have the material to come up with a great idea.
Example: "Innotech has created a groundbreaking traffic control system that can cut travel time by installing patented "smart grids" in stop signs that can read the number of cars in a given lane and direct traffic according to conditions. American drivers don't. will have to wait at the red light again for minutes when the green light flashes indicating that there are no cars in the opposite direction."
Step 6. Talk about the market potential
Describe the big problem by providing statistics for your industry. Be careful not to pretend you control a bigger market than you really are! The fact that the medical device industry is worth 100 billion dollars a year means nothing because your new medical device will only serve a certain segment of the industry. Narrow down to a realistic market potential.
Step 7. Enter your unique selling proposition
This is the moment where you describe your unique solution. What specifically gives your product or service an edge over your competition? Maybe your home care service actually sends doctors to homes instead of just nurses, or maybe you guarantee same-day visits so you don't have to schedule in advance. Show why your business is special.
Example: "Intellilight has the added benefit of being able to detect when no one is in the house. If a light is left on in an empty room, it automatically turns off and on again when it detects motion in the room. consumers pay on their electricity bills and waste less energy."
Step 8. Talk about your business model, if necessary
Some executive summaries do not require a business model. (Non-profits, non-commercials, and NGOs may not need to have a business plan.) But if your business has one, your business model needs to be clear and easy to follow. Essentially, you're answering the question, "How do you get people to take money out of their wallets and give it to you?" Keep the model simple, especially in the executive summary. A brief summary is more than sufficient.
Step 9. Discuss your management team, if necessary
Depending on your industry, this can be one of the most important parts of your executive summary. Your investor or banker trusts your team, not the idea you put forward. Ideas are easy to propose, but to realize these ideas requires a strong team. Briefly indicate why your team has the experience and knowledge to execute your business plan well.
Step 10. Provide financial projections to support your statement
Based on your market, business model, and historical performance, you will need to develop a bottom-up financial forecast. The point of your projection is simply to demonstrate your competence, and your ability to build financial projections based on a convincing set of assumptions.
If your plan is for a group of investors, don't spend too much time on this section because they know that you have no idea how much money you might make. Investors generally will not make a yes or no decision based on your financial projections. They will basically make their own financial projections
Step 11. Smooth the path to your request
Now is the time to submit an investment or loan request, depending on the objectives of your executive summary. You need to restate why your company assigns a certain value. Remind readers of a major problem you are solving with your product/service as well as your potential market. At the end, re-emphasize your team and their ability to get the job done. Ask for the amount of money needed to reach your next big business milestone. Don't reveal how much equity you're willing to give up or the interest rate you're willing to pay. This should be done later through face-to-face negotiations.
Step 12. Reread your summary
If you've written the basics, reread them carefully. You need to proofread the summary very carefully. When rereading, also consider the reader of the document. Make sure new references are well explained and the language is clear to people unfamiliar with the topic. Rewrite if necessary.
- Ask others with fresh minds to read your executive summary, paying attention to:
- Clarity. Are the words used clear, the ideas clear, and the summary does not use jargon?
- Error. Grammar, punctuation, and spelling errors can occur. It's also a good idea to ask someone else to fact-check numbers and statistics.
- compulsion. Do the ideas in the summary sound like over-promotion? Where is the lack of promotion, if any?
- Coherence. What parts don't fit together? Which part is appropriate?
Tips
- The busier the executive, the less he will read. Write enough.
- Try the document templates that come with most word processing software to get you started.
- Executive summary documents can vary in length, but should be brief. Your goal is to convey as much information as possible in a small to moderate amount of reading. If you include details in your summary, include the most important points first, such as conclusions and recommendations.
- These same four areas can be used for executive summaries for various business dealings.
