What is an Executive Summary - Benefits, Example, Mistakes

What is an Executive Summary?

An executive summary is a business plan designed concisely to attract potential investors and stakeholders. New business owners or entrepreneurs present a brief overview of business proposals highlighting critical features of the business that convince financial firms or banking executives to take a loan for their business. 

A perfect executive statement example comprises information on the purpose of the project, addressing objectives, key findings, goals, recommendations, schedules, budgets and so on. It is engaging and comprehensive, typically 1 to 4 pages, ideally under 2 pages, with styles that make it quick and easy to read. 

Executive Summary in Project Management

In project management, an executive summary aids in defining specific elements of the huge project plan clearly and concisely. A quick overview of a big project proposal holds crucial points of the whole plan that let investors engage and bring a sneak peek to learn more about the project. 

The executive summary for project management must include metrics, goals, success, stakeholders, budget, roles, deliverables, timelines, milestones, and schedules, along with the communication plan. 

There are different templates depending on the type of project plan. A common executive summary template for project management must consider the following details stepwise.

• Introduction: Comprises the project’s purpose.
• Company Description: Determine why your company is perfect to continue the project.
• Problem or Need: The issue the company will take part to resolve.
• Effective Solution: It covers the key selling point of your project (product, processes or services) that determines the value of your proposal.
• Evidence: Provide relevant research, feasible studies and proof to support your effective solution.
• Resources: Clearly mention the resources required for the project management.
• Funding Request: Explain your budget baseline, the project's profitability and how it benefits the investors and the public users.
• Market Analysis: Determine who is your target audience or market and competitors along with the sales strategies and partnership plans. Also, mention how your company stands out from them.
• Timeline and Teams: Briefly explain the estimated timelines and schedules of the project work. Never miss the consideration of the team members and why they are qualified for the project.
• Conclusion: Never forget to mention the project takeaways.

The Benefits Of An Executive Summary

As mentioned earlier, not every investor has time to read the entire document. They only look for specific features like goals, why they matter and how to accomplish them within the budget plan. Here are some key benefits of preparing a targeted executive summary:

1. Saves Time: Investors and banking forms need more time to review lengthy or bulky documents. They prefer reading key features of the overall business plan.
2. Clarity and Conciseness: An executive summary holds clear and precise information, easing investors to understand complex information with no loopholes in just one look.
3. Helps in Document Navigation: An executive summary works as a roadmap to readers, navigating them through the main topics, which enhances the accessibility and usability of the documents.
4. Aid in Decision-Making: The key feature of the executive summary engages the investors. It quickly helps them decide whether to invest to support the project.
5. Offers Clear Communication: An executive summary showcases the big picture of the project without going in-depth with the entire information.

How To Write An Executive Summary?

To write an engaging executive summary, individuals must consider the following points.

1. Write a strong business plan in the first place, where entrepreneurs or business owners must systematically cover all the essential topics briefly. 
2. Spend more time creating an eye-catching introduction. For instance, if the entrepreneur is from the R&D field, they must refer to the surprising key trends of the sector relevant to the project plan. It captivates the reader's attention and aids in acknowledging the business objective and expectations from the project.
3. Give a comprehensive but brief touch of the company’s description, market plans, target audience, management and production teams, budget, profit for investors, etc. Ideally, this information convinces them to read more and influences their decision-making. Follow the generalized template mentioned above based on your project requirements.
4. Always proofread, edit and organize the document information systematically. Watch your writing tone. Place critical information at the beginning. Try to portray the features in unique styles and using bulletins. Cross-examine the accuracy, grammar, spelling mistakes, sentence formation, language, and voice of the information. Stay focused on the executive summary serves as a standalone document to support your business plan.
5. Don't get shy in seeking assistance from outside. Professionals and experts can guide better to ensure the document provides information smoothly and delivers what the owner tries to convey.

Example of an Executive Summary

One of the good executive statement examples is FirstEnergy. They have delivered inspiring content for business owners of corporate or formal brands. The executive summary holds information about the mission, operations, goods and services, strategic plans, corporate responsibility values and subsidiaries briefly and concisely. The overview is enough to understand this publicly traded company. The image, logo, and bulletins showcase crucial information about the brand.

Common Mistakes to Avoid 

Here are some common mistakes to avoid while writing a practical executive summary.

• Creating a bulky content
• Copy-pasting of the content from another website
• Using AI tools to build your content and not making it authentic
• Too many subheadings in the list of executive summary
• Use of technical and passive language, rude tone, unnecessary designs 
• Avoid general descriptions and build a unique one
• Never include comparison in the executive summary as it portrays a negative impact
• Not focusing on the facts and beliefs to prove your theory

Conclusion

An executive summary must be created short and precise to clarify all the crucial business plan information. It should be prepared in an engaging manner that attracts the investors and influences their decision-making to support the business plan. An efficient executive summary for a brand needs knowledge of the field and project management. It highlights the business in the competitive market. Post Graduate Program in Project Management by Simplilearn offers a certification program that can develop potential skills to become a perfect project leader and make you stand out in the competitive edge of the job landscape.

Choose the Right Program

Are you looking to take your project management skills to the next level? Look no further than Simplilearn's comprehensive project management courses!

Our courses are designed to help professionals at every level of experience to develop and enhance their project management skills, whether you're just starting out in the field or looking to advance your career. With our courses, you'll gain practical, hands-on experience in managing projects from start to finish, and learn best practices and industry standards that will set you apart from the competition.

Program Name	PMP® Certification Training Course	PMP Plus	Post Graduate Program In Project Management
Geo	All Geos	All Geos	All Geos
University	PMI	Simplilearn	University of Massachusetts Amherst
Course Duration	90 Days of Flexible Access to Online Classes	36 Months	6 Months
Coding experience reqd	No	No	No
Skills you wll learn	8+ PM skills including Work Breakdown Structure, Gantt Charts, Resource Allocation, Leadership and more.	6 courses including Project Management, Agile Scrum Master, Implementing a PMO, and More	9+ skills including Project Management, Quality Management, Agile Management, Design Thinking and More.
Additional Benefits	-Experiential learning through case studies -Global Teaching Assistance -35PDUs	-Learn by working on real-world problems -24x7 Learning support from mentors	-Earn 60+ PDU’s -3 year course access
Cost	$$	$$$$	$$$$
	Explore Program	Explore Program	Explore Program

Frequently Asked Questions

Q1. What is included in the executive summary?

The executive summary includes critical points on the purpose of the business, an introduction, a table of contents in bullet points, the company’s role and strength, the need for a business plan and its importance, and a justification of the solution with a firm conclusion.

Q2. How do you write an executive summary for a company?

To write a compelling executive summary, we must seek a relevant template. Accordingly, we must consider crucial information to represent it first. Start with the purpose, introduction, and information about the deliveries, deadlines, and teams concisely. Focus on tone, language and styles of presenting information on the document. Remember to proofread at the end.

Q3. How long is the executive summary?

An executive summary can be 1 to 4 pages, depending on the project. Ideally, it must be under 2 pages.

Q4. What is an executive summary in a paper?

An executive summary in a paper is a brief overview of a research report considering the critical points of the project, such as time, budget and other crucial information, in a list format that turns investors in.