
Last version published: 13/02/2020 11:14
Publication number: ELQ-45653-15
View all versions & Certificate

How to write the Perfect Executive Summary
An overview of the key elements for an efficient executive summary to investors.
Introduction
At this stage, you have probably read a number of articles, blogs, perhaps even books about the best ways to write an executive summary. Most of them have a vast number of well intended recommendations about all the elements needed in an executive summary. Ironically, while they give you a convenient list of forty-two critical items you should include, they also tell you to keep it brief. A majority of the guides about executive summary writing thus miss the crux: the role of the executive summary is not to describe, but to sell.
The executive summary is what a potential investor will come across first, so it is imperative that you give the correct first impression. In contrast to the advice in publications on this subject, you do not need to summarise the whole business plan in 250 words. What needs to be conveyed in an executive summary is its essence and energy. 30 seconds is all you have to arouse the curiosity of the investor. The objective is to be both clear and compelling to win a maximum of points early on.
Let all other suggestions you may have received slip from memory. Here are all the essential components that should be included in your executive summary. You will also find some general points to consider, so that you can avoid quite a number of classical pitfalls.
Besides, if you are looking to increase the quality of your global presentation to investors, just search “Perfecting your Pitch” in the Eloquens Catalog.
- Step n°1 |
The Grab
You should lead with the most compelling statement of why you have a really big idea. You need to get your reader to think, “Wow!” 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.thumb_up If you can drop some impressive names in the first paragraphyou should—world-class advisors, companies you are already working with, a brand name founding investor.
lightbulb_outline 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, or opportunity you are going to exploit.
In this context you are establishing your Value Proposition—there is enormous pain and opportunity out there, and you are going to increase revenues, reduce costs, increase speed, expand reach, eliminate inefficiency, increase effectiveness, whatever.lightbulb_outline 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.
thumb_upAvoid acronyms and don’t try to use these precious few words 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 Garage Technology Ventures
How to perfect your Pitch
Learn how to win the hearts and minds of investors with a compelling pitch.1,303Discussadd_shopping_cartGetting to Wow!
How to create a value proposition that will dazzle investors - a 4 step framework.34Discussadd_shopping_cartHow to make money in the New Economy
Learn how to make money in the new economy by following 10 tips based on Revenue Bootcamp's workshops.31Discussadd_shopping_cartHow to perform as well as US Navy Sailors
Learn how to adopt the principles that make the Navy so successful, applying these to an entrepreneurial context.15Discussadd_shopping_cartHow to avoid lying as an Entrepreneur
Discover the Top Ten Lies told by entrepreneurs and how to avoid them.17Discussadd_shopping_cartHow to Obtain Venture Funding - 7 Critical Factors
Discover the 7 critical factors that will help you obtain venture capital funding.38Discussadd_shopping_cartHow to avoid making Terrible Slideshows when Raising Capital
Avoid the most classic errors when creating slides aimed at investors with our top ten list of industry faux-pas!29Discussadd_shopping_cartNew Opportunities and Challenges For Entrepreneurs and Investors
Discover the opportunities and challenges entrepreneurs and investors are exposed to with new ventures.20Discussadd_shopping_cartThe Art of the Start
Discover the simple but critical steps to quickly and effectively jump-start your company.85Discussadd_shopping_cartThe Art of Raising Capital
Discover how best to raise capital with our 5 key steps.108Discussadd_shopping_cartThe Art of Selling
Discover how to increase your revenue with our 10 proven sales strategies and techniques.74Discussadd_shopping_cartThe Art of Bootstrapping
Discover the importance of bootstrapping and our 4 main bootstrapping methods to get your company off the ground.40Discussadd_shopping_cart
Any questions on How To Write The Perfect Executive Summary?
The user community and author are here to help. Go ahead!