How to Write an Executive Summary in 1 Hour
An executive summary is designed to be short and not comprehensive and long. They take account for all the analyses and write ups and cover the gamut of the business opportunity in a single page. In an executive summary, we need to cover the main areas of the business for the sake of showing the potential of a business/idea. We will cover 14 different areas to include in your executive summary.
Company overview
This is your 30 second elevator pitch. If you met your perfect customer or an active investor, this is what your pitch would be. It should be no longer than 2-3 sentences.
Problem/Opportunity
This section should address two questions:
- What is the problem you are solving?
- What is the opportunity you have in front of you?
Solution
Simply explain how you are going to solve the problem and how you will do it differently than others.
Business Model
Explain how you make money and go into the unit economics of how it will work. Talk about your pricing, costs, and sources of revenue.
Sales Traction
State any current customers and sales figures. This includes beta customers.
Launch Plan
What are the specific dates you are going to launch your product to your target audience?
Market Size
What is your “addressable” market that is actually reachable for the company in the next 3-5 years?
Target Customer
What are the characteristics of your customer and the end-user?
Competition
List your direct and indirect competitors.
Management Team
List out each persons position and background.
Board of Directors/Advisors
List the names and backgrounds of each member.
Financial Projects
This should be a very basic 5 year forecast of your revenues and expenses. Include in here your estimated monthly burn rate.
Investment Opportunity
What is your pre-money valuation and how much are you raising? It is also a good idea to have a good idea of your use of funds (e.g. sales & marketing, development, etc).
Exit Strategy
What is your plan to get acquired and by who? What do you expect your liquidation price to be based on industry standards?
Conclusion
The executive summary is designed to help you showcase your business opportunity to show how you’re going to prove your concept. The mistake I see many businesses take is spending too much time on the executive summary and not enough time executing. Let us know if this was helpful and what you thought in the comments section below.
