
Last version published: 17/04/2020 12:59
Publication number: ELQ-71063-2
View all versions & Certificate

How to Master the Executive Summary
A guide by Guy Kawasaki with tips on how to master the art of the executive summary.
Introduction
Several people have asked me for a blog entry about executive summaries. My colleague at Garage, Bill Reichert, wrote this explanation, and it’s as good as it gets.
Writing a Compelling Executive Summary
By now, you’ve probably already read several articles, web pages—even books—about writing the perfect executive summary. Most of them offer a wealth of well-intended suggestions about all the stuff you need to include in the executive summary. They provide a helpful list of the forty-two critical items you should cover—any entrepreneur worth his or her salt should be able to address these points in less than 100 pages—and then they tell you to be concise.
Most guides to writing an executive summary miss the key point: The job of the executive summary is to sell, not to describe.
The executive summary is often your initial face to a potential investor, so it is critically important that you create the right first impression. Contrary to the advice in articles on the topic, you do not need to explain the entire business plan in 250 words. You need to convey its essence, and its energy. You have about 30 seconds to grab an investor’s interest. You want to be clear and compelling.
Forget what everyone else has been telling you. Here are the key components that should be part of your executive summary:
- Step n°1 |
The Grab
You should lead with the most compelling statement of why you have a really big idea. This sentence (or two) sets the tone for the rest of the executive summary. Usually, this is a concise statement of the unique solution you have developed to a big problem. It should be direct and specific, not abstract and conceptual. If you can drop some impressive names in the first paragraph you should—world-class advisors, companies you are already working with, a brand name founding investor. Don’t expect an investor to discover that you have two Nobel laureates on your advisory board six paragraphs later. He or she may never get that far.
- Step n°2 |
The Problem
You need to make it clear that there is a big, important problem (current or emerging) that you are going to solve. In this context you are establishing your Value Proposition—there is enormous pain out there, and you are going to increase revenues, reduce costs, increase speed, expand reach, eliminate inefficiency, increase effectiveness, whatever. Don’t confuse your statement of the problem with the size of the opportunity (see below).
- Step n°3 |
The Solution
What specifically are you offering to whom? Software, hardware, service, combination? Use commonly used terms to state concretely what you have, or what you do, that solves the problem you’ve identified. Avoid acronyms and don’t try to use this opportunity to create and trademark a bunch of terms that won’t mean anything to most people. You might need to clarify where you fit in the value chain or distribution channels—who do you work with in the ecosystem of your sector, and why will they be eager to work with you. If you have customers and revenues, make it clear. If not, tell the investor when you will.
Reviews
Write a review
People using this Best Practice also downloaded
More Best Practices from Guy Kawasaki
Startup Financial Forecasting Excel Template
This tool will help you craft the financial forecast that will be a part of your pitch.2,826Discussadd_shopping_cartfreeby Guy Kawasaki
How to Master the Art of Leading
Created in collaboration with Bill Meade, this post aims to advise internal entrepreneurs on leadership.72Discussadd_shopping_cartfreeby Guy Kawasaki
How to Master the Pitch
Here is listed the characteristics of what makes a good pitch.81Discussadd_shopping_cartfreeby Guy Kawasaki
How to Pitch with Only 10 Slides
Teaching how to use the 10/20/30 PowerPoint method. 10 slides, 20 minutes, min. font size 30.300Discussadd_shopping_cartfreeby Guy Kawasaki
How to Create an Enchanting Business Plan
Here is some advice on writing a great business plan at high level.632Discussadd_shopping_cartfreeby Guy Kawasaki
How to Create an Enchanting Pitch
This is to help you make great Pitches with PowerPoint for your business.373Discussadd_shopping_cartfreeby Guy Kawasaki
How to Pick Your Startup Advisors
Some advice on picking advisers for your startup journey.58Discussadd_shopping_cartfreeby Guy Kawasaki
How to be a Demo God
This post has been created for anyone who needs to make a 10/10 demo. It's a skill you really need to get good at!59Discussadd_shopping_cartfreeby Guy Kawasaki
How to Get the Attention of a Venture Capitalist
This is some advice on how to grab a VC's attention.58Discussadd_shopping_cartfreeby Guy Kawasaki
How to Enchant your Customer
10 ways SMEs can charm their customers.70Discussadd_shopping_cartfreeby Guy Kawasaki
How to Rock the First 90 Days of a Job
This post will give you advice on what to avoid doing, and what do try and achieve.65Discussadd_shopping_cartfreeby Guy Kawasaki
How to Intern like a Rock Star
Learn how to make the most of your internships and impress your employer.20Discussadd_shopping_cartfreeby Guy Kawasaki
Any questions on How To Master The Executive Summary?
The user community and author are here to help. Go ahead!