How to Write an Executive Summary for Your Business Plan

The Executive Summary Is Your First Impression -- and Often Your Only One

Investors spend an average of 3 minutes and 44 seconds on a business plan before deciding whether to keep reading or move on. That is not a guess -- it is data from DocSend's analysis of over 200 startup fundraising campaigns. The executive summary is what fills those critical first minutes.

For SBA lenders, the dynamic is similar. Loan officers review dozens of applications per week. A strong executive summary signals that the rest of the plan will be worth their time. A weak one creates skepticism that colors everything they read afterward.

The executive summary is the last section you should write but the first section readers see. Write it after every other section is complete so you can distill the strongest elements of your plan.

What Belongs in an Executive Summary

An effective executive summary follows a logical flow: problem, solution, market, traction, team, and ask. Here is how to structure each element.

1. The Problem (2-3 Sentences)

Define the specific problem your business solves. Avoid vague statements like "communication is inefficient." Instead, be concrete: "Small law firms spend an average of 8 hours per week on document formatting that could be automated, costing a 5-attorney firm roughly $40,000 annually in lost billable time."

The problem statement must resonate with your reader. If they immediately understand why this matters, you have their attention.

2. Your Solution (2-3 Sentences)

Describe what your business does in plain language. A good test: could someone with no industry knowledge understand your solution in one reading? Avoid jargon, acronyms, and technical details. Save those for later sections.

Include your unique value proposition -- what makes your approach different from existing alternatives. This is not about being "better" in a vague sense. It is about a specific, defensible advantage.

3. Market Opportunity (2-3 Sentences)

Summarize your target market size using the TAM/SAM/SOM framework (you will expand on this in your market analysis section). Lead with the addressable market figure, not the total market. Saying "the global software market is $600 billion" tells the reader nothing about your opportunity.

Instead: "There are 47,000 small law firms in the U.S. with 2-10 attorneys. At our price point of $200/month per firm, our serviceable addressable market is $113 million annually."

4. Business Model and Traction (3-4 Sentences)

How do you make money, and what evidence do you have that it works? For pre-revenue businesses, traction might be letters of intent, pilot program results, waitlist signups, or partnerships. For existing businesses, lead with your strongest metrics: revenue, growth rate, customer retention, or unit economics.

Be specific with numbers. "Strong growth" means nothing. "42% month-over-month revenue growth over the past 6 months, reaching $28,000 MRR" tells a clear story.

5. Team (2-3 Sentences)

Highlight the 2-3 most relevant credentials of your leadership team. Focus on experience directly related to executing this specific business. A technical co-founder's PhD matters for a biotech startup. For a restaurant, 15 years of restaurant management experience matters more than any degree.

6. The Ask (2-3 Sentences)

State clearly what you need: the amount of funding, the type (loan, equity, line of credit), and exactly how the funds will be used. For an SBA loan application, specify the loan program (7(a), 504, microloan) and the use-of-funds breakdown.

Example: "We are seeking a $350,000 SBA 7(a) loan to fund leasehold improvements ($150,000), equipment ($120,000), and working capital ($80,000) for our second location."

How Long Should an Executive Summary Be?

The ideal length depends on context:

• For SBA loans and bank financing: 1-2 pages. Lenders expect thoroughness and specific financial details
• For angel investors and VCs: 1 page maximum. Investors prefer brevity and will request more detail if interested
• For internal planning: Length matters less, but keeping it to 2 pages forces clarity of thought

A common guideline is that the executive summary should be roughly 5-10% of your total business plan length. For a 20-page plan, that is 1-2 pages.

Common Executive Summary Mistakes

1. Leading With the Company History

"Founded in 2024, our company..." is how most executive summaries begin, and it is the least compelling opening possible. Lead with the problem or the market opportunity. The reader cares about what you are going to do, not when you incorporated.

2. Being Too Vague

Phrases like "cutting-edge technology," "world-class team," and "massive market opportunity" say nothing. Replace every adjective with a specific fact or number. Instead of "experienced team," write "team with 40 combined years in healthcare logistics."

3. Including Too Much Detail

The executive summary is not a condensed version of every section. It is a curated highlight reel. If you find yourself explaining product features, marketing tactics, or detailed financial projections, you have gone too deep. Those details belong in their respective sections.

4. Forgetting the Ask

If you are seeking funding, the reader needs to know how much and for what purpose. Burying the ask or omitting it entirely wastes the reader's time and yours. Be direct.

5. Making Unsupported Claims

Saying "we will capture 10% of the market within two years" without explaining how invites skepticism. Every claim in the executive summary should be substantiated in the body of your plan. If it is not, either add the support or remove the claim.

Executive Summary Checklist

Before you finalize your executive summary, verify that it answers these questions:

• What problem does the business solve and for whom?
• How does the business make money?
• How big is the market opportunity, with specific numbers?
• What traction or validation exists?
• Why is this team qualified to execute?
• What is being requested (funding amount, type, use of funds)?
• What are the key financial projections (revenue, profitability timeline)?

If any answer is missing or unclear, revise before submitting. The executive summary sets the tone for everything that follows.

Writing an executive summary can feel like trying to compress your entire vision into a page. BizPlanForge generates polished executive summaries from your business details, giving you a professional starting point that you can refine with your unique insights and voice.