What is an executive summary? Purpose and key elements for your small business

Published Tuesday 23 December 2025

Table of contents

• What is an executive summary?
• What to include in an executive summary
• Executive summary structure and format
• How to write an executive summary
• Getting your business plan right
• FAQs on executive summaries

Key takeaways

• Complete your full business plan before writing the executive summary to ensure you have comprehensive information to draw from and can create original, tailored content rather than copying from other sections.

• Structure your executive summary as a logical story that includes your business purpose, the problem you solve, your solution, value proposition, and financial highlights, keeping it to one page maximum for busy stakeholders.

• Tailor your content specifically to your audience by highlighting market size and fund usage for investors, steady income and repayment ability for lenders, or mutual growth benefits for potential partners.

• Focus on essential information only, treating the executive summary as the one section everyone will read, and use clear, simple language to communicate your key messages effectively.

What is an executive summary?

An executive summary is the elevator pitch for your business plan that highlights what you do, why you do it and how you'll succeed. It's often the first section readers encounter, making it your key opportunity to sell your idea.

Why executive summaries matter:

• Time-saving: Allows readers to understand your business without reading the full document
• First impressions: Creates immediate impact with investors, lenders, and partners
• Engagement: Compelling summaries encourage readers to continue through your plan
• Accessibility: Especially valuable for busy stakeholders who need quick overviews

Think about who will read your plan and how complex it is before you decide whether to include an executive summary.

How does an executive summary differ from a mission statement or business objective?

A mission statement outlines the overall purpose and vision of your business, and a business objective is a specific goal or target you'll aim for to help you achieve that vision.

Your executive summary can include your mission statement and business objectives, but it should simply sum up your whole business plan in a few short paragraphs.

What to include in an executive summary

Treat your executive summary as the one section everyone will read. Include only the most critical information needed to understand your business opportunity.

Essential elements to include:

• Business purpose: What your business does and why you do it
• Target market: Your customers, their problem, and your solution
• Products or services: What you're selling and how it works
• Mission statement: Your company's core purpose (if you have one)
• Market validation: Key research that supports your business case
• Implementation plan: Timeline to launch or key milestones
• Financial highlights: Revenue projections and funding needs (for investor-focused plans)

Executive summary structure and format

While there's no single template, a strong executive summary generally follows a logical flow. Think of it as telling a short story about your business. Most effective summaries include these five parts:

• Project overview: Start with a brief introduction to your business. State what you do, who you serve, and what your mission is.
• Problem statement: Clearly define the problem your business solves for customers or the opportunity you're addressing in the market.
• Proposed solution: Describe your product or service and explain how it solves the problem you just mentioned. This is where you show your innovation.
• Value proposition: Highlight the key benefits and unique advantages of your solution. Why should a customer choose you over a competitor?
• Financials and call to action: Briefly touch on your financial projections and state what you need from the reader, whether it's funding, a partnership, or approval to proceed.

How to write an executive summary

To write an effective executive summary, plan it carefully and use clear, simple language. Follow these steps to create a compelling summary:

1. Complete your business plan first

Finish other sections before writing your summary. This ensures you have complete information to draw from.

2. Focus on key messages

Summarise essential sections in plain language. Include supporting data but avoid personal opinions.

3. Write original content

Avoid copying and pasting from other sections. Create specific, concise content tailored for quick reading.

4. Target your audience

• For investors: highlight the size of the market and how you plan to use any funds, especially if you want to list on the Australian Securities Exchange (ASX). Between 2018 and 2022, businesses raised an average of $7 billion a year in initial public offering (IPO) capital on the ASX.
• For lenders: show that your business has steady income and that you can repay the loan on time
• For partners: explain how working together will help both of you grow

5. Keep it conciseAim for one page maximum to maintain reader attention and engagement.

You can find tips on business planning and more in How to start a business.

Getting your business plan right

A well-crafted executive summary opens doors to funding, partnerships, and business growth, potentially leading to opportunities on major public markets like the ASX, which has a $2 trillion market capitalisation. It positions your business professionally and demonstrates your strategic thinking to stakeholders.

Ready to turn your business plan into reality? Effective financial management is crucial for achieving the goals outlined in your executive summary. Try Xero for free and see how cloud-based accounting software can help you track progress, manage cash flow, and build the successful business you've planned.

FAQs on executive summaries

Here are answers to a few common questions about writing an executive summary.

What's the point of an executive summary?

An executive summary gives busy people, like investors or lenders, a quick overview of your entire business plan. It helps them decide if your proposal is worth reading in full and lets them see the main points without getting lost in the detail.

How do I start my executive summary?

Start with a strong, clear opening sentence that states your business name and what you do. Think of it as the first line of your elevator pitch. For example, 'Connective Tech is a new software company that provides project management tools for small construction businesses.'

How long should an executive summary be?

Keep it concise. A good rule of thumb is to keep your executive summary to one or two pages at most. It should be long enough to cover the essential points but short enough to be read quickly. For most small business plans, one page is ideal.