example of executive in business plan

How to Write a Powerful Executive Summary [+4 Top Examples]

Published: August 31, 2023

Whether you're an entrepreneur looking for investors for your small business or the CEO of a large corporation, an executive summary can help you succeed and is a critical component for long-term growth.

A short, attention-grabbing executive summary is an essential part of your business plan . Done correctly, it will ensure your company becomes or remains a key player in your industry. In this post, you’ll learn what an executive summary is and how to write one that engages investors, customers, and general audiences.

Executive Summary

An executive summary is a brief overview of a long document, such as a business plan, proposal, or report. It's a section that grabs readers’ attention and summarizes critical information from the document, such as the problem or opportunity being addressed, objectives, key findings, goals, and recommendations.

Some documents that may have an executive summary include:

• Business plans
• Research documents
• Project proposals
• Annual reports

Ultimately, the executive summary is meant to inform readers of the most important information in the document, so they don't have to read it all and can get caught up quickly.

Free Executive Summary Template

Use this executive summary template to provide a summary of your report, business plan, or memo.

• Company & Opportunity
• Industry & Market Analysis
• Management & Operations
• Financial Plan

You're all set!

Click this link to access this resource at any time.

Executive Summary vs. Business Plan

All business plans have an executive summary, but not all executive summaries belong to business plans.

A business plan includes a company overview, your company's short-term and long-term goals, information on your product or service, sales targets, expense budgets, your marketing plan, and a list including each member of your management team. In this case, the executive summary is the first section of the business plan that convinces readers that it’s worth their time to read the whole thing.

Business plans are very detailed and comprehensive, and can be as short as a dozen pages or as long as 100 pages. However, a CEO or investor might not have the interest or time to read your full business plan without first getting the general gist of your company or goals through an executive summary.

Executive Summary vs. Mission Statement

Mission statements and executive summaries are typically both found in business plans, but they serve different purposes.

A mission statement defines your organization’s purpose, values, and vision. It’s your company’s north star and communicates your core identity and reason for existence. On the other hand, an executive summary provides a high-level overview of the document.

Ultimately, your mission statement provides direction for developing your business plan, while your executive summary describes your business plan to executives and shareholders.

Executive Summary vs. Company Description

Like mission statements and executive summaries, company descriptions can also be found in business plans as well as the “About us” page of your website . It provides an overview of your business, including essential details like company history, what your company does, unique selling points, goals, management team, and overall value proposition.

Executive Summary vs. Objective

An objective is a specific goal or target that your company takes aims to achieve its overall goal. It is a concrete, measurable outcome that guides your business’s actions and decisions. Objectives are usually set at the strategic level and are typically aligned with the company’s mission, vision, and overall strategic plan.

Company objectives are often included in executive summaries, but are not the sole focus of them.

What is the purpose of an executive summary?

Writing an executive summary may not seem that necessary. After all, you can find the same information just by reading the rest of the document.

However, the executive summary serves many purposes for your document and those who read it. Here are some of the benefits of having one:

• It saves your readers time. CEOs and investors often have limited time to review lengthy documents. An executive summary allows them to quickly grasp the main points, key findings, and recommendations without needing to read the entire document.
• It provides clarity and conciseness. By providing a condensed overview, executive summaries help to distill complex information and present it in a manner that’s easy to understand.
• It helps with document navigation. For longer documents or reports, an executive summary provides a roadmap for readers. It helps them navigate through the document by signaling the main sections or topics covered, improving overall document usability and accessibility.

To write an impressive executive summary that effectively embodies all the important elements of your business plan, we've cultivated a list of necessary components for an executive summary, as well as an example to get you started.

Follow Along With HubSpot's Executive Summary Template

Click to Download

How to write an executive summary.

A good executive summary tells your company’s story, contains in-depth research, conveys information with an appropriate tone, is void of clichés, and follows your business plan’s structure. These elements will ensure your executive summary is effective, informative, and impactful.

1. Tell your story.

When investors or CEO's read your executive summary, they should understand what your business is about. This is one of the first elements of your business plan, so it should set the tone.

In your executive summary, be sure to tell your story and include an overview about what your company does and why you do what you do. You can also briefly highlight important details about your company’s management.

For instance, you could talk about your founder or CEO’s qualifications and motivations. You can also provide a high-level summary of your company’s business operations and any management methods or best practices that you abide by.

You’ll also want to explain the problem or opportunity that is being addressed, and how it is valuable to investors and customers. Think of this like an elevator pitch . If someone stopped reading and you only had the executive summary to explain your company, what information would you include?

2. Highlight important data.

An executive summary, while short, should include plenty of research.

Highlight the most important findings and insights from the document, including any critical data or statistics discovered in your competitor analysis . While your business plan will flesh out the details, it's important to include your key findings in your executive summary.

You should also provide a basic rundown of your target market, how you plan on addressing their needs and pain points, and how you will reach them.

Additionally, you should include key financial information. The main points you should cover are the overall budget, the price per product/service, and your financial projections.

3. Pay attention to your tone.

Although the tone of your executive summary should be professional and concise, it should also be true to your company and target audience. Aim to convey a sense of authority and credibility while remaining accessible and engaging.

Here are some tips to keep in mind:

• Focus on presenting information objectively with facts and evidence.
• Don’t voice your personal opinions or use subjective statements.
• Strive for clarity and simplicity in your language and ensure that your message is easily understood.
• Avoid unnecessarily complexity or convolution.
• Don’t use hyperbole or excessive claims.
• Use strong verbs, active voice, and concise language to make your points effectively.
• Aim to resonate with the reader’s interests and concerns.

By striking the right balance between professionalism, clarity, and engagement, you can effectively deliver your message and compel the reader to take action or make informed decisions based on the summary.

4. Avoid cliché language.

With any style of writing, it's best to avoid clichés. Clichés can convey the wrong message or be misunderstood, which is something you want to avoid when someone reads your executive summary.

Additionally, clichés tend to overpromise and under-deliver. For example, including something like “The Best Restaurant in Town” isn‘t true because you’re untested as a business. Your executive summary should reflect the truth and who you are as a company.

To avoid clichés while writing, it’s essential to be aware of their presence. Familiarize yourself with common clichés and be mindful of them as you write. Some examples include:

• “Thinking outside the box”
• “Innovative solutions”
• “Cutting-edge technology”

Instead of relying on these overused phrases, be descriptive and embrace the uniqueness of your brand when writing your executive summary. For instance, there’s no need to vaguely refer to your product as a “game-changer,” when you could explain how it benefits your target audience instead. Show, don’t tell.

By staying true to your voice and delivering an honest message, you can keep your writing fresh and your audience engaged.

5. Write it after completing your business plan.

An executive summary is a summary of your business plan. However, it‘s hard to write a summary when you haven’t written your business plan yet. That's why your executive summary should be the final thing you write.

By saving this step for last, you’re able to gain a thorough understanding of the entire plan, including your business’s goals, strategies, market analysis, and financial projections. This enables you to accurately depict the most important aspects in your summary.

If you write you executive summary first, you’re more likely to miscommunicate the essence of your business plan to executives and shareholders. Sure, you may have an outline prepare, but not having all the information can lead to inconsistencies or inaccuracies in your summary. You also risk including irrelevant details or omitting important details that come up during the planning process.

Ultimately, writing your executive summary last ensures that precisely represents the content and findings your plan.

If you don’t have a business plan yet, don’t worry; we have a comprehensive business plan template to help you create one quickly and effectively.

Featured Resource: Business Plan Template

Download Your Free Template Here

Now that you know how to write an executive summary, let's dive into the details of what to include.

What to Include in Your Executive Summary

Your business plan should convey your company‘s mission, your product, a plan for how you’ll stand out from competitors, your financial projections, your company's short and long-term goals, your buyer persona, and your market fit.

Ultimately, an executive summary should provide a preview for investors or CEO's, so they know what to expect from the rest of your report. Your executive summary should include:

• The name, location, and mission of your company
• A description of your company, including management, advisors, and brief history
• Your product or service, where your product fits in the market, and how your product differs from competitors in the industry
• Financial considerations, start-up funding requirements, or the purpose behind your business plan — mention what you hope the reader will help your company accomplish

How long should an executive summary be?

While there is no hard and fast rule for the exact length, executive summaries typically range from one to three pages. However, it's important to note that the length should be determined by the document it accompanies and the content itself rather than a predetermined page count.

At the end of the day, your executive summary should engage the reader and highlight the most important points of your document while avoiding unnecessary details.

Feeling at a loss? Download a free template below that will take you through the executive summary creation process.

Executive Summary Template

Download Your Free Executive Summary Template Here

In this free executive summary template, you’ll be able to outline several pieces of information, including:

• Introduction: Explain what your executive summary contains.
• Company & Opportunity: Explain who you are and your biggest opportunities for growth.
• Industry & Market Analysis: Explain the state of your industry and your target market.
• Management & Operations: Explain who your key leaders are and their roles.
• Implementation & Marketing: Explain how you plan to deploy your product to the marketplace.
• Financial Plan: Explain your company’s finances. Change the verbiage depending on whether you’re writing to investors or a general audience.
• Conclusion: Summarize what you’ve covered.

Ready? Download your free executive summary template .

To understand more tactically how an executive summary should look, let’s review a few examples.

Executive Summary Examples

1. connected.

Don't forget to share this post!

Related articles.

24 of My Favorite Sample Business Plans & Examples For Your Inspiration

19 Best Sample Business Plans & Examples to Help You Write Your Own

What is a Business Plan? Definition, Tips, and Templates

Maximizing Your Social Media Strategy: The Top Aggregator Tools to Use

The Content Aggregator Guide for 2023

7 Gantt Chart Examples You'll Want to Copy [+ 5 Steps to Make One]

The 8 Best Free Flowchart Templates [+ Examples]

16 Best Screen Recorders to Use for Collaboration

The 25 Best Google Chrome Extensions for SEO

Professional Invoice Design: 28 Samples & Templates to Inspire You

Marketing software that helps you drive revenue, save time and resources, and measure and optimize your investments — all on one easy-to-use platform

• Credit cards
• View all credit cards
• Banking guide
• Loans guide
• Insurance guide
• Personal finance
• View all personal finance
• Small business
• Small business guide
• View all taxes

You’re our first priority. Every time.

We believe everyone should be able to make financial decisions with confidence. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free.

So how do we make money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. Here is a list of our partners .

How to Write an Executive Summary in 6 Steps

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

When you’re starting a business, one of the first things you need to do is write a business plan. Your business plan is like a roadmap for your business, so you can lay out your goals and a concrete plan for how you’ll reach them.

Not only is a business plan essential for any business owner, but it’s also a requirement if you decide to apply for small business funding or find investors. After all, before a bank or individual hands over any money, they’ll want to be sure your company is on solid ground (so they can get their money back).

A business plan consists of several pieces, from an executive summary and market analysis to a financial plan and projections. The executive summary will be the first part of your business plan.

If wondering how to write an executive summary has kept you from completing your business plan, we’re here to help. In this guide, we’ll explain what an executive summary is and provide tips for writing your own so your business plan can start strong.

What is an executive summary?

An executive summary is a short, informative, and easy-to-read opening statement to your business plan. Even though it’s just one to two pages, the executive summary is incredibly important.

An executive summary tells the story of what your business does, why an investor might be interested in giving funds to your business, why their investment will be well-spent, and why you do what you do. An executive summary should be informative, but it should also capture a busy reader’s attention.

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Why write an executive summary?

Anyone you’re sending your executive summary and business plan to is likely busy—very busy. An entire business plan is long, involved, and deals with a lot of numbers.

Someone busy wants to get an understanding of your business, and they want to do it quickly, which is to say not by diving into a complicated, 80-page business plan. That’s where your executive summary comes in.

An executive summary provides just the opportunity to hook someone’s interest, tell them about your business, and offer a clear selling point as to why they should consider investing in your business.

Your executive summary is your chance to sell your business to potential investors and show them your business is worth not only their money but also their time.

What to include in an executive summary

By its nature, an executive summary is short. You must be able to clearly communicate the idea of your business, what sets you apart, and how you plan to grow into a successful enterprise.

The subsequent sections of your business plan will go into more detail, but your executive summary should include the most critical pieces of your business plan—enough to stand on its own, as it’s often the only thing a prospective investor will read. Here’s what your executive summary should include—consider it an executive summary template from which you can model your own.

1. The hook

The first sentence and paragraph of your executive summary determine whether or not the entire executive summary gets read. That’s why the hook or introduction is so important.

In general, a hook is considered anything that will get a reader’s attention. While an executive summary is a formal business document, you do want your hook to make you stand out from the crowd—without wasting time.

Your hook can be sharing something creative about your company, an interesting fact, or just a very well-crafted description of your business. It’s crucial to craft your hook with the personality of your reader in mind. Give them something that will make your company stand out and be memorable among a sea of other business plans.

Grab their attention in the first paragraph, and you’re much more likely to get your executive summary read, which could lead to an investment.

2. Company description summary

Now that you’ve hooked your reader, it’s time to get into some general information about your business. If an investor is going to give you money, after all, they first need to understand what your company does or what product you sell and who is managing the company.

Your company description should include information about your business, such as when it was formed and where you’re located; your products or services; the founders or executive team, including names and specific roles; and any additional details about the management team or style.

3. Market analysis

Your market analysis in the executive summary is a brief description of what the market for your business looks like. You want to show that you have done your research and proven that there is a need for your specific product or services. Some questions you should answer:

Who are your competitors?

Is there a demand for your products or services?

What advantages do you have that make your business unique in comparison to others?

To reiterate, stick to the highlights of your market analysis in your executive summary. You’ll provide a complete analysis in a separate section of your business plan, but you should be able to communicate enough in the executive summary that a potential investor can gauge whether your business has potential.

4. Products and services

Now that you’ve established a need in the market, it’s time to show just how your business will fill it. This section of your executive summary is all about highlighting the product or service that your company offers. Talk about your current sales, the growth you’ve seen so far, and any other highlights that are a selling point for your company.

This is also a good time to identify what sets your business apart and gives you a competitive advantage. After all, it’s unlikely that your business is the first of its kind. Highlight what you do better than the competition and why potential customers will choose your product or service over the other options on the market.

5. Financial information and projections

In this section of your executive summary, you want to give the reader an overview of your current business financials. Again, you’ll go more in-depth into this section later in your business plan, so just provide some highlights. Include your current sales and profits (if you have any), as well as what funding you’re hoping to acquire and how this will affect your financials in the next few years.

This is also where you can explain what funding, if any, you’ve received in the past. If you paid back your loan on time, this is an especially bright selling point for potential lenders.

6. Future plans

While asking for what funding you need is essential, you’ve also got to make clear what you’re going to use that funding for. If you’re asking for money, you want the person to know you have a plan to put those funds to good use.

Are you hoping to open another location, expand your product line, invest in your marketing efforts? This final section of your executive summary should detail where you want your business to go in the future, as well as drive home how funding can help you get there.

Tips for writing an executive summary

Even if you include each part of a good executive summary, you might not get noticed. What is written can be just as important as how it’s written. An executive summary has to strike a delicate balance between formal, personable, confident, and humble.

1. Be concise

An executive summary should include everything that’s in your business plan, just in a much shorter format. Writing a concise executive summary is no easy task and will require many revisions to get to the final draft. And while this is the first section of your executive summary, you’ll want to write it last, after you’ve put together all the other elements.

To choose your most important points and what should be included in the executive summary, go through your business plan, and pull out single-line bullet points. Go back through those bullet points and eliminate everything unnecessary to understanding your business.

Once you have your list of bullet points narrowed down, you can start writing your executive summary. Once it’s written, go back in and remove any unnecessary information. Remember, you should only be including the highlights—you have the rest of your business plan to go into more detail. The shorter and clearer your executive summary is, the more likely someone is to read it.

2. Use bullet points

One simple way to make your executive summary more readable is to use bullet points. If someone is reading quickly or skimming your executive summary, extra whitespace can make the content faster and easier to read.

Short paragraphs, short sentences, and bullet points all make an executive summary easier to skim—which is likely what the reader is doing. If important numbers and convincing stats jump out at the reader, they’re more likely to keep reading.

3. Speak to your audience

When writing your executive summary, be sure to think about who will be reading it; that’s who you’re speaking to. If you can personalize your executive summary to the personality and interests of the person who will read it, you’re more likely to capture their attention.

Personalizing might come in the form of a name in the salutation, sharing details in a specific way you know that person likes and the tone of your writing. An executive summary deals with business, so it will generally have a formal tone. But, different industries may be comfortable with some creativity of language or using shorthand to refer to certain ideas.

Know who you’re speaking to and use the right tone to speak to them. That might be formal and deferential, expert and clipped, informal and personable, or any other appropriate tone. This may also involve writing different versions of your executive summary for different audiences.

4. Play to your strengths

One of the best ways to catch the attention of your reader is to share why your business is unique. What makes your business unique is also what makes your business strong, which can capture a reader’s interest and show them why your business is worth investing in. Be sure to highlight these strengths from the start of your executive summary.

5. Get a test reader

Once you’ve written and edited your executive summary, you need a test reader. While someone in your industry or another business owner can be a great resource, you should also consider finding a test reader with limited knowledge of your business and industry. Your executive summary should be so clear that anyone can understand it, so having a variety of test readers can help identify any confusing language.

If you don’t have access to a test reader, consider using tools such as Hemingway App and Grammarly to ensure you’ve written something that’s easy to read and uses proper grammar.

How long should an executive summary be?

There’s no firm rule on how long an executive summary should be, as it depends on the length of your business plan and the depth of understanding needed by the reader to fully grasp your ask.

That being said, it should be as short and concise as you can get it. In general, an executive summary should be one to two pages in length.

You can fudge the length slightly by adjusting the margin and font size, but don’t forget readability is just as important as length. You want to leave plenty of white space and have a large enough font that the reader is comfortable while reading your executive summary. If your executive summary is hard to read, it’s less likely your reader will take the time to read your business plan.

What to avoid in an executive summary

While the rules for writing a stellar executive summary can be fuzzy, there are a few clear rules for what to avoid in your executive summary.

Your executive summary should avoid:

Focusing on investment. Instead, focus on getting the reader to be interested enough to continue and read your business plan or at least schedule a meeting with you.

Clichés, superlatives, and claims that aren’t backed up by fact. Your executive summary isn’t marketing material. It should be straightforward and clear.

Avoiding the executive summary no-nos is just as important as striking the right tone and getting in the necessary information for your reader.

Start Your Dream Business

The bottom line

While an executive summary is short, it’s challenging to write. Your executive summary condenses your entire introduction, business description, business plan, market analysis, financial projections, and ask into one to two pages. Condensing information down to its most essential form takes time and many drafts. When you’re putting together your business plan’s executive summary, be sure to give yourself plenty of time to write it and to seek the help of friends or colleagues for editing it to perfection.

However, some tools make crafting a business plan, including your executive summary, a simpler process. A business plan template is a great place to start, and business plan software can especially help with the design of your business plan. After all, a well-written executive summary can make all the difference in obtaining funding for your business, so you’ll want all the help you can get.

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

On a similar note...

How it works

Transform your enterprise with the scalable mindsets, skills, & behavior change that drive performance.

Explore how BetterUp connects to your core business systems.

We pair AI with the latest in human-centered coaching to drive powerful, lasting learning and behavior change.

Build leaders that accelerate team performance and engagement.

Unlock performance potential at scale with AI-powered curated growth journeys.

Build resilience, well-being and agility to drive performance across your entire enterprise.

Transform your business, starting with your sales leaders.

Unlock business impact from the top with executive coaching.

Foster a culture of inclusion and belonging.

Accelerate the performance and potential of your agencies and employees.

See how innovative organizations use BetterUp to build a thriving workforce.

Discover how BetterUp measurably impacts key business outcomes for organizations like yours.

A demo is the first step to transforming your business. Meet with us to develop a plan for attaining your goals.

• What is coaching?

Learn how 1:1 coaching works, who its for, and if it's right for you.

Accelerate your personal and professional growth with the expert guidance of a BetterUp Coach.

Types of Coaching

Navigate career transitions, accelerate your professional growth, and achieve your career goals with expert coaching.

Enhance your communication skills for better personal and professional relationships, with tailored coaching that focuses on your needs.

Find balance, resilience, and well-being in all areas of your life with holistic coaching designed to empower you.

Discover your perfect match : Take our 5-minute assessment and let us pair you with one of our top Coaches tailored just for you.

Research, expert insights, and resources to develop courageous leaders within your organization.

Best practices, research, and tools to fuel individual and business growth.

View on-demand BetterUp events and learn about upcoming live discussions.

The latest insights and ideas for building a high-performing workplace.

• BetterUp Briefing

The online magazine that helps you understand tomorrow's workforce trends, today.

Innovative research featured in peer-reviewed journals, press, and more.

Founded in 2022 to deepen the understanding of the intersection of well-being, purpose, and performance

We're on a mission to help everyone live with clarity, purpose, and passion.

Join us and create impactful change.

Read the buzz about BetterUp.

Meet the leadership that's passionate about empowering your workforce.

For Business

For Individuals

How to write an executive summary in 10 steps

Whether presenting a business plan, sharing project updates with stakeholders, or submitting a project proposal, an executive summary helps you grab attention and convey key insights.

Think of it as a condensed version of a document, report, or proposal that highlights the most important information clearly and concisely. It's like a "cheat sheet" that gives you a snapshot of the main points without reading the entire thing.

Throughout the article, we'll explore some examples of executive summaries to give you a better understanding of how they can be applied. Plus, we'll provide you with ready-to-use templates and best practices for writing compelling executive summaries.

What is an executive summary?

An executive summary is a concise overview of a longer document or report. It is typically written for busy executives or decision-makers who may not have the time to read the entire document but still need to grasp its key points and recommendations. 

An effective executive summary should capture the essence of the document, highlighting the most important information in a brief and easily understandable way. It should provide a snapshot of the document's purpose, methodology, major findings, and key recommendations. The summary should be written in a way that allows the reader to quickly grasp the main ideas and make informed decisions based on the information presented.

Why do you need to write one?

For a business owner , an executive summary is one of the most important documents you will have. Like a business plan , they help you lay out the potential value of your business and your potential for success. 

Unlike a business proposal, however, an executive summary is designed to be read in a brief amount of time. That makes them ideal for a variety of uses, like project proposals and research summaries. Sending your strategic plan to a prospective investor or stakeholder likely won’t get you far. But a brief report that clearly states your key findings and what’s in it for them might help you — and your proposal — stand out. It isn't all the details. It's what gets you the meeting to share more.

An executive summary is also a business document that can travel without you. It may be presented to other leaders and potential investors. If it’s written well, it will take on a life of its own. You may find that you get support and resources from places you never imagined.

What should be included in an executive summary?

Your executive summary should include brief descriptions of who your product, service, or proposal is for and your competitive advantage. Be sure to introduce your report concisely yet clearly . Note the most important points and its overall purpose––what do you hope to achieve with this report? 

Also, include any necessary background information and statistics about the industry, high-level information about your business model, necessary financial information, or other insights you discuss in the report. Depending on your proposal, you may want to consider summarizing a market analysis of your target market.

Typically, an executive summary follows a structured format, including sections such as:

• Introduction: Provides a brief background and context for the document.
• Objective or purpose: Clearly states the goal of the document and what it aims to achieve.
• Methodology: Briefly describes the approach, data sources, and methods used to conduct the research or analysis.
• Findings: Summarizes the main findings, conclusions, or results derived from the document.
• Recommendations: Outlines the key recommendations or proposed actions based on the findings.
• Conclusion: Provides a concise wrap-up of the main points and emphasizes the significance of the document.

How do you write an executive summary?

When tackling an executive summary, it's all about following a structured approach to ensure you effectively communicate those crucial points, findings, and recommendations. Let’s walk through some steps and best practices to make it a breeze:

Step 1: Get to know the document

Take the time to dive into the full document or report that your executive summary will be based on. Read it thoroughly and identify the main objectives, key findings, conclusions, and recommendations.

Step 2: Know your audience

Think about who you're writing the executive summary for. Consider their knowledge level, interests, and priorities. This helps you tailor the summary to their needs and make it relevant and impactful.

Step 3: Outline the structure

Create an outline for your executive summary with sections like introduction, objective, methodology, findings, recommendations, and conclusion. This way, you'll have a logical flow that's easy to follow.

Step 4: Start strong

Kick off your executive summary with a captivating opening statement. Make it concise, engaging, and impactful to hook the reader and make them want to keep reading.

Step 5: Summarize objectives and methodology

Give a brief overview of the document's objectives and the methodology used to achieve them. This sets the context and helps the reader understand the approach taken.

Step 6: Highlight key findings

Summarize the main findings, conclusions, or results. Focus on the juiciest and most relevant points that support the document's purpose. Keep it clear and concise to get the message across effectively.

Step 7: Present key recommendations

Outline the important recommendations or proposed actions based on the findings. Clearly state what needs to be done, why it matters, and how it aligns with the document's objectives. Make those recommendations actionable and realistic.

Step 8: Keep it snappy

Remember, an executive summary should be short and sweet. Skip unnecessary details, jargon, or technical language . Use straightforward language that hits the mark.

Step 9: Review and polish

Once you've written the executive summary, give it a careful review for clarity, coherence, and accuracy. Make sure it captures the essence of the full document and represents its content faithfully. Take the extra step to edit out any fluff or repetition.

Step 10: Dress to impress

Consider formatting and presentation. Use headings, bullet points, and formatting styles to make it visually appealing and easy to skim. If it makes sense, include some graphs, charts, or visuals to highlight key points.

Tips for writing an effective executive summary

• Adapt your language and tone to suit your audience.
• Keep things concise and crystal clear—say no to jargon.
• Focus on the most important info that packs a punch.
• Give enough context without overwhelming your reader.
• Use strong and persuasive language to make your recommendations shine.
• Make sure your executive summary makes sense even if the full document isn't read.
• Proofread like a pro to catch any pesky grammar, spelling, or punctuation errors.

Executive summary template for business plans

Here's a general template for creating an executive summary specifically for business plans:

[Your Company Name]

[Business Plan Title]

Business overview

Provide a brief introduction to your company, including its name, location, industry, and mission statement . Describe your unique value proposition and what sets your business apart from competitors.

Market analysis

Summarize the key findings of your market research. Provide an overview of the target market, its size, growth potential, and relevant trends. Highlight your understanding of customer needs, preferences, and behaviors.

Product or service offering

Outline your core products or services, including their key features and benefits. Emphasize how your offerings address customer pain points and provide value. Highlight any unique selling points or competitive advantages.

Business model

Explain your business model and revenue generation strategy. Describe how you will generate revenue, the pricing structure, and any distribution channels or partnerships that contribute to your business's success.

Marketing and sales strategy

Summarize your marketing and sales approach. Highlight the key tactics and channels you will use to reach and attract customers. Discuss your promotional strategies, pricing strategies, and customer acquisition plans.

Management team

Introduce the key members of your management team and their relevant experience. Highlight their expertise and how it positions the team to execute the business plan successfully. Include any notable advisors or board members.

Financial projections

Summarize your financial projections, including revenue forecasts, expected expenses, and projected profitability. Highlight any key financial metrics or milestones. Briefly mention your funding needs, if applicable.

Funding requirements

If seeking funding, outline your funding requirements, including the amount needed, its purpose, and the potential sources of funding you are considering. Summarize the expected return on investment for potential investors.

Reiterate the vision and potential of your business. Summarize the key points of your business plan, emphasizing its viability, market potential, and the expertise of your team. Convey confidence in the success of your venture.

Note: Keep the executive summary concise and focused, typically within one to two pages. Use clear and compelling language, emphasizing the unique aspects of your business. Tailor the template to suit your specific business plan, adjusting sections and details accordingly.

Remember, the executive summary serves as an introduction to your business plan and should pique the reader's interest, conveying the value and potential of your business in a concise and persuasive manner.

Executive summary examples

Every executive summary will be unique to the organization's goals, vision, and brand identity. We put together two general examples of executive summaries to spark your creativity and offer some inspiration. 

These are not intended to be used as-is but more to offer ideas for how you may want to put your own executive summary together. Be sure to personalize your own summary with specific statistics and relevant data points to make the most impact.

Example 1: executive summary for a communications business plan

Introduction:

We're thrilled to present our innovative [insert product] that aims to revolutionize the way people connect and engage. Our vision is to empower individuals and businesses with seamless communication solutions that break barriers and foster meaningful connections.

Market opportunity:

The communications industry is evolving rapidly, and we've identified a significant opportunity in the market. With the proliferation of remote work, the need for reliable and efficient communication tools has skyrocketed. Our extensive market research indicates a demand for solutions that prioritize user experience, security, and flexibility.

Product offering:

At [Company Name], we've developed a suite of cutting-edge communication tools designed to meet the diverse needs of our customers. Our flagship product is a unified communication platform that integrates voice, video, messaging, and collaboration features into a seamless user experience. We also offer customizable solutions for businesses of all sizes, catering to their unique communication requirements.

Unique value proposition:

What sets us apart from the competition? Our user-centric approach and commitment to innovation. We prioritize user experience by creating intuitive interfaces and seamless interactions. Our solutions are scalable, adaptable, and designed to keep up with evolving technological trends. By combining ease of use with advanced features, we deliver unparalleled value to our customers.

Target market:

Our primary focus is on small and medium-sized businesses (SMBs) that require efficient and cost-effective communication tools. We also cater to individuals, remote teams, and larger enterprises seeking reliable and secure communication solutions. Our target market encompasses industries such as technology, finance, healthcare, and professional services.

Business model:

To generate revenue, we employ a subscription-based business model. Customers can choose from different plans tailored to their specific needs, paying a monthly or annual fee. We also offer additional services such as customization, integration, and customer support, creating additional revenue streams and fostering long-term customer relationships.

Marketing and sales strategy:

Our marketing strategy centers around building brand awareness through targeted digital campaigns, content marketing, and strategic partnerships. We'll leverage social media, industry influencers, and online communities to reach our target audience. Additionally, our sales team will engage in proactive outreach, nurturing leads and providing personalized consultations to convert prospects into loyal customers.

Team and expertise:

Our team is composed of experienced professionals with a deep understanding of the communications industry. Led by our visionary founder and supported by a skilled and diverse team, we have the expertise to drive innovation, develop robust products, and deliver exceptional customer service. We're passionate about our mission and dedicated to making a lasting impact in the market.

Financial projections:

Based on extensive market research and financial analysis, we anticipate strong growth and profitability. Our financial projections indicate steady revenue streams, with increasing customer adoption and market share. We're committed to managing costs effectively, optimizing our resources, and continuously reinvesting in research and development.

Funding requirements:

To fuel our ambitious growth plans and accelerate product development, we're seeking [funding amount] in funding. These funds will be allocated towards expanding our team, scaling our infrastructure, marketing efforts, and ongoing product innovation. We believe this investment will position us for success and solidify our market presence.

Conclusion:

In summary, [Company Name] is poised to disrupt the communications industry with our innovative solutions and customer-centric approach. We're ready to make a positive impact by empowering individuals and businesses to communicate effectively and effortlessly. Join us on this exciting journey as we redefine the future of communication. Together, we'll shape a connected world like never before.

Example 2: executive summary for a project proposal

[Project Name]

[Project Proposal Date]

Hello! We're thrilled to present our project proposal for [Project Name]. This executive summary will provide you with a high-level overview of the project, its objectives, and the value it brings.

Project overview:

Our project aims to [describe the project's purpose and scope]. It's a response to [identify the problem or opportunity] and has the potential to bring significant benefits to [stakeholders or target audience]. Through meticulous planning and execution, we're confident in our ability to achieve the desired outcomes.

Objectives:

The primary goal of our project is to [state the overarching objective]. In addition, we have specific objectives such as [list specific objectives]. By accomplishing these goals, we'll create a positive impact and drive meaningful change.

Our proposed approach for this project is based on a thorough analysis of the situation and best practices. We'll adopt a structured methodology that includes [describe the key project phases or activities]. This approach ensures efficient utilization of resources and maximizes project outcomes.

The benefits of this project are truly exciting. Through its implementation, we anticipate [describe the anticipated benefits or outcomes]. These benefits include [list specific benefits], which will have a lasting and positive effect on [stakeholders or target audience].

Implementation timeline:

We've devised a comprehensive timeline to guide the project from initiation to completion. The project is divided into distinct phases, with well-defined milestones and deliverables. Our timeline ensures that tasks are executed in a timely manner, allowing us to stay on track and deliver results.

Resource requirements:

To successfully execute this project, we've identified the key resources needed. This includes [list the resources required, such as human resources, technology, equipment, and funding]. We're confident in our ability to secure the necessary resources and allocate them effectively to ensure project success.

A project of this nature requires a well-planned budget. Based on our analysis, we've estimated the required funding to be [state the budget amount]. This budget encompasses all project-related costs and aligns with the anticipated benefits and outcomes.

Our project proposal is an exciting opportunity to address [the problem or opportunity] and create tangible value for [stakeholders or target audience]. With a clear vision, defined objectives, and a robust implementation plan, we're ready to embark on this journey. Join us as we bring this project to life and make a lasting impact. 

Is an executive summary the same as a project plan?

While both are important components of project management and documentation , they serve different purposes and contain distinct information.

An executive summary, as discussed earlier, is a concise overview of a longer document or report. It provides a snapshot of the key points, findings, and recommendations. It focuses on high-level information and aims to provide an overview of the document's purpose, methodology, findings, and recommendations.

On the other hand, a project plan is a detailed document that outlines the specific activities, tasks, timelines, resources, and milestones associated with a project. It serves as a roadmap for project execution, providing a comprehensive understanding of how the project will be carried out.

A project plan typically includes objectives, scope, deliverables, schedule, budget, resource allocation, risk management, and communication strategies. It is intended for project team members, stakeholders, and those directly involved in the execution.

In summary, an executive summary offers a condensed overview of a document's key points, while a project plan provides a comprehensive and detailed roadmap for executing a project.

Executive summaries vs. abstracts

An executive summary is not the same as an abstract. Executive summaries focus on the main points of a proposal. They highlight when and why a reader should invest in the company or project.

An abstract, on the other hand, concentrates on what the business does and its marketing plan. It typically doesn’t include detailed information about finances.

While it is usually compelling, it’s less of an elevator pitch and more of a summary. The goal of an abstract is to inform, not to persuade. On the other hand, the goal of an executive summary is to give readers who are pressed for time just enough information that they’ll want to look further into your proposition.

When do you use an executive summary?

An executive summary is used in various situations where there is a need to present a condensed overview of a longer document or report. Here are some common instances when an executive summary is used:

• Business proposals: When submitting a business proposal to potential investors, partners, or stakeholders, an executive summary is often included. It provides a concise overview of the proposal, highlighting the key aspects such as the business idea, market analysis, competitive advantage, financial projections, and recommended actions.
• Reports and research studies: Lengthy reports or research studies often include an executive summary at the beginning. This allows decision-makers, executives, or other stakeholders to quickly understand the purpose, methodology, findings, and recommendations of the report without going through the entire document.
• Project updates: During the course of a project, project managers may prepare executive summaries to provide updates to stakeholders or higher-level management. These summaries give a brief overview of the project's progress, achievements, challenges, and upcoming milestones.
• Strategic plans: When developing strategic plans for an organization, an executive summary is often included to provide an overview of the plan's goals, objectives, strategies, and key initiatives. It allows executives and stakeholders to grasp the essence of the strategic plan and its implications without reading the entire document.
• Funding requests: When seeking funding for a project or venture, an executive summary is commonly used as part of the funding proposal. It provides a succinct summary of the project, highlighting its significance, potential impact, financial requirements, and expected outcomes.

In general, an executive summary is used whenever there is a need to communicate the main points, findings, and recommendations of a document concisely and efficiently to individuals who may not have the time or inclination to read the entire content. It serves as a valuable tool for understanding and facilitates quick decision-making.

5 ways project managers can use executive summaries

Project managers can use executive summaries in various ways to effectively communicate project updates, status reports, or proposals to stakeholders and higher-level management. Here are some ways project managers can use executive summaries:

• Project status updates: Project managers can provide regular executive summaries to stakeholders and management to communicate the current status of the project. The summary should include key achievements, milestones reached, challenges encountered, and any adjustments to the project plan. It allows stakeholders to quickly grasp the project's progress and make informed decisions or provide guidance as needed.
• Project proposals: When pitching a project idea or seeking approval for a new project, project managers can prepare an executive summary to present the essential aspects of the project. The summary should outline the project's objectives, scope, anticipated benefits, resource requirements, estimated timeline, and potential risks. It helps decision-makers understand the project's value and make an informed choice about its initiation.
• Project closure reports: At the end of a project, project managers can prepare an executive summary as part of the project closure report. The summary should highlight the project's overall success, key deliverables achieved, lessons learned, and recommendations for future projects. It provides a concise overview of the project's outcomes and acts as a valuable reference for future initiatives.
• Steering committee meetings: When project managers present updates or seek guidance from a steering committee or governance board, an executive summary can be an effective tool. The summary should cover the important aspects of the project, such as progress, issues, risks, and upcoming milestones. It ensures that decision-makers are well-informed about the project's status and can provide relevant guidance or support.
• Change requests: When submitting a change request for a project, project managers can include an executive summary to summarize the proposed change, its impact on the project, potential risks, and benefits. It helps stakeholders and decision-makers quickly assess the change request and make informed decisions about its implementation.

Using executive summaries, project managers can efficiently communicate project-related information to stakeholders, executives, and decision-makers. The summaries provide a concise overview of the project's status, proposals, or closure reports, allowing stakeholders to quickly understand the key points and take appropriate action.

When should you not use an executive summary?

While executive summaries are widely used in many situations, there are some cases where they may not be necessary or suitable. Here are a few scenarios where an executive summary may not be appropriate, along with alternative approaches:

• Highly technical documents: If the document contains highly technical or specialized information that requires a detailed understanding, an executive summary alone may not be sufficient. In such cases, it is better to provide the complete document and supplement it with explanatory materials, presentations , or meetings where experts can explain and discuss the technical details.
• Personal or creative writing: Executive summaries are typically used for informational or analytical documents. If the content is more personal in nature, such as a memoir, novel, or creative piece, an executive summary may not be relevant. Instead, focus on providing an engaging introduction or book blurb that entices readers and conveys the essence of the work.
• Short documents: If the document itself is already concise and can be easily read in its entirety, an executive summary may be redundant. In these cases, it is more effective to present the complete document without an additional summary.
• Interactive presentations: In situations where you can present information interactively, such as in meetings, workshops, or conferences, it may be more effective to engage the audience directly rather than relying solely on an executive summary. Use visual aids, demonstrations, discussions, and Q&A sessions to convey the necessary information and capture the audience's attention.

Final thoughts on writing a compelling executive summary

An executive summary isn’t the kitchen sink — it’s the bells and whistles. Geared toward busy decision-makers, these one-pagers communicate your case for action and proposed solutions. When it’s written well, your audience will walk away with an understanding of what needs to be done, why it needs to happen, and why they should help it move forward. 

But writing it well doesn’t just mean spell-checking. It means tailoring your communication to an influential, yet busy and distracted audience. To be effective, you’ll need to write your proposal with empathy and an understanding of what matters to them .

Invest in your career

Get your promotion. Make your career change. Build the future you dream about. And do it faster with a world-class BetterUp Coach by your side.

Allaya Cooks-Campbell

With over 15 years of content experience, Allaya Cooks Campbell has written for outlets such as ScaryMommy, HRzone, and HuffPost. She holds a B.A. in Psychology and is a certified yoga instructor as well as a certified Integrative Wellness & Life Coach. Allaya is passionate about whole-person wellness, yoga, and mental health.

Tips for how to write a LinkedIn summary and examples

12 resume career objective examples and tips for writing one, executive development is personalized to leaders everywhere, writing a resignation letter that’s effective and professional, how executive functioning governs daily life activities, what is a career statement, and should you write one, executive presence: what is it, why you need it and how to get it, how stanford executive education embraces vulnerability as a form of resilience, what is executive coaching: benefits for the 2024 workforce, similar articles, how to create a scope of work in 8 steps, continuous improvement process: a 6 steps guide to implementing pdca, what’s a project scope, and how do you write one, how the minto pyramid principle can enhance your communication skills, how to make decisions like a multi-billion dollar corporation, cv versus resume demystify the differences once and for all, writing an elevator pitch about yourself: a how-to plus tips, how to write a memo: 8 steps with examples, stay connected with betterup, get our newsletter, event invites, plus product insights and research..

3100 E 5th Street, Suite 350 Austin, TX 78702

• Platform Overview
• Integrations
• Powered by AI
• BetterUp Lead
• BetterUp Manage™
• BetterUp Care™
• Sales Performance
• Diversity & Inclusion
• Case Studies
• Why BetterUp?
• About Coaching
• Find your Coach
• Career Coaching
• Communication Coaching
• Life Coaching
• News and Press
• Leadership Team
• Become a BetterUp Coach
• BetterUp Labs
• Center for Purpose & Performance
• Leadership Training
• Business Coaching
• Contact Support
• Contact Sales
• Privacy Policy
• Acceptable Use Policy
• Trust & Security
• Cookie Preferences

Our Recommendations

• Best Small Business Loans for 2024
• Businessloans.com Review
• Biz2Credit Review
• SBG Funding Review
• Rapid Finance Review
• 26 Great Business Ideas for Entrepreneurs
• Startup Costs: How Much Cash Will You Need?
• How to Get a Bank Loan for Your Small Business
• Articles of Incorporation: What New Business Owners Should Know
• How to Choose the Best Legal Structure for Your Business

Small Business Resources

• Business Ideas
• Business Plans
• Startup Basics
• Startup Funding
• Franchising
• Success Stories
• Entrepreneurs
• The Best Credit Card Processors of 2024
• Clover Credit Card Processing Review
• Merchant One Review
• Stax Review
• How to Conduct a Market Analysis for Your Business
• Local Marketing Strategies for Success
• Tips for Hiring a Marketing Company
• Benefits of CRM Systems
• 10 Employee Recruitment Strategies for Success
• Sales & Marketing
• Social Media
• Best Business Phone Systems of 2024
• The Best PEOs of 2024
• RingCentral Review
• Nextiva Review
• Ooma Review
• Guide to Developing a Training Program for New Employees
• How Does 401(k) Matching Work for Employers?
• Why You Need to Create a Fantastic Workplace Culture
• 16 Cool Job Perks That Keep Employees Happy
• 7 Project Management Styles
• Women in Business
• Personal Growth
• Best Accounting Software and Invoice Generators of 2024
• Best Payroll Services for 2024
• Best POS Systems for 2024
• Best CRM Software of 2024
• Best Call Centers and Answering Services for Busineses for 2024
• Salesforce vs. HubSpot: Which CRM Is Right for Your Business?
• Rippling vs Gusto: An In-Depth Comparison
• RingCentral vs. Ooma Comparison
• Choosing a Business Phone System: A Buyer’s Guide
• Equipment Leasing: A Guide for Business Owners
• HR Solutions
• Financial Solutions
• Marketing Solutions
• Security Solutions
• Retail Solutions
• SMB Solutions

Online only.

5 Steps for Writing an Executive Summary

Table of Contents

Anyone starting a new business must create a business plan that clearly outlines the organization’s details and goals. The executive summary is a crucial element of that business plan.

We’ll explore five steps to writing your business plan’s executive summary, including what to include and avoid. We’ll also point you toward executive summary templates to help you get started. 

What is an executive summary?

New entrepreneurs or business owners typically use a business plan to present their great business idea to potential stakeholders like angel investors . The purpose of the business plan is to attract financing from investors or convince banking executives to get a bank loan for their business . An executive summary is a business plan overview that succinctly highlights its most essential elements. 

It’s not just a general outline; the executive summary might be the only part of your business plan that busy executives and potential investors read. 

“The executive summary of a business plan is designed to capture the reader’s attention and briefly explain your business, the problem you are solving, the target audience, and key financial information,” Ross Kimbarovsky, CEO and founder of Crowdspring, told Business News Daily. “If the executive summary lacks specific information or does not capture the attention of the reader, the rest of the plan might not be read.”

While your executive summary should be engaging and comprehensive, it must also be quick and easy to read. These documents average one to four pages – ideally, under two pages – and should comprise less than 10% of your entire business plan.

Along with an executive summary, a business plan will include your business’s legal structure , the products and services you sell, and a financial plan with sales forecasts .

How do you write an executive summary?

Your executive summary will be unique to your organization and business plan. However, most entrepreneurs and business owners take the following five steps when creating their executive summary.

• Write your business plan first. The executive summary will briefly cover the most essential topics your business plan covers. For this reason, you should write the entire business plan first, and then create your executive summary. The executive summary should only cover facts and details included in the business plan.
• Write an engaging introduction. What constitutes “engaging” depends on your audience. For example, if you’re in the tech industry, your introduction may include a surprising tech trend or brief story. The introduction must be relevant to your business and capture your audience’s attention. It is also crucial to identify your business plan’s objective and what the reader can expect to find in the document.
• Write the executive summary. Go through your business plan and identify critical points to include in your executive summary. Touch on each business plan key point concisely but comprehensively. You may mention your marketing plan , target audience, company description, management team, and more. Readers should be able to understand your business plan without reading the rest of the document. Ideally, the summary will be engaging enough to convince them to finish the document, but they should be able to understand your basic plan from your summary. (We’ll detail what to include in the executive summary in the next section.)
• Edit and organize your document. Organize your executive summary to flow with your business plan’s contents, placing the most critical components at the beginning. A bulleted list is helpful for drawing attention to your main points. Double-check the document for accuracy and clarity. Remove buzzwords, repetitive information, qualifying words, jargon, passive language and unsupported claims. Verify that your executive summary can act as a standalone document if needed.
• Seek outside assistance. Since most entrepreneurs aren’t writing experts, have a professional writer or editor look over your document to ensure it flows smoothly and covers the points you’re trying to convey.

What should you include in an executive summary?

Your executive summary is based on your business plan and should include details relevant to your reader. For example, if your business plan’s goal is pitching a business idea to potential investors , you should emphasize your financial requirements and how you will use the funding. 

The type of language you use depends on whether your audience consists of generalists or industry experts.

While executive summary specifics will vary by company, Marius Thauland, business strategist at OMD EMEA, says all executive summaries should include a few critical elements:

• Target audience
• Products and services
• Marketing and sales strategies
• Competitive analysis
• Funding and budget allocation for the processes and operations
• Number of employees to be hired and involved
• How you’ll implement the business plan 

When synthesizing each section, highlight the details most relevant to your reader. Include any facts and statistics they must know. In your introduction, present pertinent company information and clearly state the business plan’s objective. To pinpoint key messages for your executive summary, ask yourself the following questions: 

• What do you want the reader to take away from the document? 
• What do you want to happen after they read it? 

“Put yourself in the business plan reader’s shoes, and think about what you would like to know in the report,” Thauland advised. “Get their attention by making it simple and brief yet still professional. It should also attract them to read the entire document to understand even the minute details.”

If securing financing is your priority, read our reviews of the best business loans to compare options.

What should you avoid in an executive summary?

When writing your executive summary, be aware of the following common mistakes: 

• Making your executive summary too long. An executive summary longer than two pages will deter some readers. You’re likely dealing with busy executives, and an overlong stretch of text can overwhelm them.
• Copying and pasting from other executive summary sections. Reusing phrases from other sections and stringing them together without context can seem confusing and sloppy. It’s also off-putting to read the same exact phrase twice within the same document. Instead, summarize your business plan’s central points in new, descriptive language.
• Too many lists and subheadings in your executive summary. After one – and only one – introductory set of bullets, recap your business plan’s main points in paragraph form without subheadings. Concision and clarity are more important for an executive summary than formatting tricks.
• Passive or unclear language in your executive summary. You’re taking the reins of your business, and your executive summary should show that. Use active voice in your writing so everyone knows you’re running the show. Be as clear as possible in your language, leaving no questions about what your business will do and how it will get there.
• Avoid general descriptions in your executive summary. Kimbarovsky said it’s best to avoid generalities in your executive summary. For example, there’s no need to include a line about “your team’s passion for hard work.” This information is a given and will take attention away from your executive summary’s critical details.
• Don’t use comparisons in your executive summary. Kimbarovsky also advises staying away from comparisons to other businesses in your executive summary. “Don’t say you will be the next Facebook, Uber or Amazon,” said Kimbarovsky. “Amateurs make this comparison to try and show how valuable their company could be. Instead, focus on providing the actual facts that you believe prove you have a strong company. It’s better if the investor gives you this accolade because they see the opportunity.”

When you’re starting a new business, the first people you should hire include a product manager, chief technology officer (CTO) , chief marketing officer and chief financial officer.

Executive summary templates and resources

If you’re writing an executive summary for the first time, online templates can help you outline your document. However, your business is unique, and your executive summary should reflect that. An online template probably won’t cover every detail you’ll need in your executive summary. Experts recommend using templates as general guidelines and tailoring them to fit your business plan and executive summary.

To get you started, here are some popular executive summary template resources:

• FormSwift. The FormSwift website lets you create and edit documents and gives you access to over 500 templates. It details what an effective executive summary includes and provides a form builder to help you create your executive summary. Fill out a step-by-step questionnaire and export your finished document via PDF or Word.
• Smartsheet. The Smartsheet cloud-based platform makes planning, managing and reporting on projects easier for teams and organizations. It offers several free downloadable executive summary templates for business plans, startups, proposals, research reports and construction projects.
• Template.net. The Template.net website provides several free business templates, including nine free executive summary templates that vary by project (e.g., business plan, startup, housing program development, proposal or marketing plan). Print out the templates and fill in your relevant details.
• TemplateLab. The TemplateLab website is a one-stop shop for new business owners seeking various downloadable templates for analytics, finance, HR, marketing, operations, project management, and time management. You’ll find over 30 free executive summary templates and examples.
• Vertex42. The Vertex42 website offers Excel templates for executive summaries on budgets, invoices, project management and timesheets, as well as Word templates for legal forms, resumes and letters. This site also provides extensive information on executive summaries and a free executive summary template you can download into Word or Google Docs.

Summing it all up

Your executive summary should preview your business plan in, at most, two pages. Wait until your business plan is complete to write your executive summary, and seek outside help as necessary. A thorough, engaging business plan and executive summary are well worth the time and money you put into them. 

Max Freedman contributed to the reporting and writing in this article. Some source interviews were conducted for a previous version of this article.

Building Better Businesses

Insights on business strategy and culture, right to your inbox. Part of the business.com network.

• Contact sales

Start free trial

How to Write an Executive Summary (Example & Template Included)

Here’s the good news: an executive summary is short. It’s part of a larger document like a business plan, business case or project proposal and, as the name implies, summarizes the longer report.

Here’s the bad news: it’s a critical document that can be challenging to write because an executive summary serves several important purposes. On one hand, executive summaries are used to outline each section of your business plan, an investment proposal or project proposal. On the other hand, they’re used to introduce your business or project to investors and other stakeholders, so they must be persuasive to spark their interest.

Writing an Executive Summary

The pressure of writing an executive summary comes from the fact that everyone will pay attention to it, as it sits at the top of that heap of documents. It explains all that follows and can make or break your business plan or project plan . The executive summary must know the needs of the potential clients or investors and zero in on them like a laser. Fortunately, we’ll show you how to write and format your executive summary to do just that.

Getting everything organized for your executive summary can be challenging. ProjectManager can help you get your thoughts in order and collaborate with your team. Our powerful task management tools make it easy to get everything prioritized and done on time. Try it free today.

What Is an Executive Summary?

An executive summary is a short section of a larger document like a business plan , investment proposal or project proposal. It’s mostly used to give investors and stakeholders a quick overview of important information about a business plan like the company description, market analysis and financial information.

It contains a short statement that addresses the problem or proposal detailed in the attached documents and features background information, a concise analysis and a conclusion. An executive summary is designed to help executives and investors decide whether to go forth with the proposal, making it critically important. Pitch decks are often used along with executive summaries to talk about the benefits and main selling points of a business plan or project.

Unlike an abstract, which is a short overview, an executive summary format is a condensed form of the documents contained in the proposal. Abstracts are more commonly used in academic and research-oriented writing and act as a teaser for the reader to see if they want to read on.

Get your free

Executive Summary Template

Use this free Executive Summary Template for Word to manage your projects better.

How to Write an Executive Summary

Executive summaries vary depending on the document they’re attached to. You can write an executive summary for a business plan, project proposal, research document, or business case, among other documents and reports.

However, when writing an executive summary, there are guidelines to ensure you hit all the bases.

Executive Summary Length

According to the many books that have been written about executive summaries, as well as training courses, seminars and professional speakers, the agreed-upon length for an executive summary format should be about five to 10 percent of the length of the whole report.

Appropriate Language

The language used should be appropriate for the target audience. One of the most important things to know before you write professionally is to understand who you’re addressing. If you’re writing for a group of engineers, the language you’ll use will differ greatly from how you would write to a group of financiers.

That includes more than just the words, but the content and depth of explanation. Remember, it’s a summary, and people will be reading it to quickly and easily pull out the main points.

Pithy Introduction

You also want to capture a reader’s attention immediately in the opening paragraph. Just like a speech often opens with a joke to break the tension and put people at ease, a strong introductory paragraph can pull a reader in and make them want to read on. That doesn’t mean you start with a joke. Stick to your strengths, but remember, most readers only give you a few sentences to win them over before they move on.

Don’t forget to explain who you are as an organization and why you have the skills, personnel and experience to solve the problem raised in the proposal. This doesn’t have to be a lengthy biography, often just your name, address and contact information will do, though you’ll also want to highlight your strengths as they pertain to the business plan or project proposal .

Relevant Information

The executive summary shouldn’t stray from the material that follows it. It’s a summary, not a place to bring up new ideas. To do so would be confusing and would jeopardize your whole proposal.

Establish the need or the problem, and convince the target audience that it must be solved. Once that’s set up, it’s important to recommend the solution and show what the value is. Be clear and firm in your recommendation.

Justify your cause. Be sure to note the key reasons why your organization is the perfect fit for the solution you’re proposing. This is the point where you differentiate yourself from competitors, be that due to methodology, testimonials from satisfied clients or whatever else you offer that’s unique. But don’t make this too much about you. Be sure to keep the name of the potential client at the forefront.

Don’t neglect a strong conclusion, where you can wrap things up and once more highlight the main points.

Related: 10 Essential Excel Report Templates

What to Include in an Executive Summary

The content of your executive summary must reflect what’s in the larger document which it is part of. You’ll find many executive summary examples on the web, but to keep things simple, we’ll focus on business plans and project proposals.

How to Write an Executive Summary for a Business Plan

As we’ve learned above, your executive summary must extract the main points of all the sections of your business plan. A business plan is a document that describes all the aspects of a business, such as its business model, products or services, objectives and marketing plan , among other things. They’re commonly used by startups to pitch their ideas to investors.

Here are the most commonly used business plan sections:

• Company description: Provide a brief background of your company, such as when it was established, its mission, vision and core values.
• Products & services: Describe the products or services your company will provide to its customers.
• Organization and management: Explain the legal structure of your business and the members of the top management team.
• SWOT analysis: A SWOT analysis explains the strengths, weaknesses, opportunities and threats of your business. They describe the internal and external factors that impact your business competitiveness.
• Industry & market analysis: This section should provide an overview of the industry and market in which your business will compete.
• Operations: Explain the main aspects of your business operations and what sets it apart from competitors.
• Marketing plan: Your marketing plan describes the various strategies that your business will use to reach its customers and sell products or services.
• Financial planning: Here, you should provide an overview of the financial state of your business. Include income statements, balance sheets and cash flow statements.
• Funding request: If you’re creating your business plan to request funding, make sure to explain what type of funding you need, the timeframe for your funding request and an explanation of how the funds will be used.

We’ve created an executive summary example to help you better understand how this document works when using it, to sum up a business plan.

To put all of that information together, here’s the basic format of an executive summary. You can find this same information in our free executive summary template :

• Introduction, be sure to know your audience
• Table of contents in the form of a bulleted list
• Explain the company’s role and identify strengths
• Explain the need, or the problem, and its importance
• Recommend a solution and explain its value
• Justify said solution by explaining how it fits the organization
• A strong conclusion that once more wraps up the importance of the project

You can use it as an executive summary example and add or remove some of its elements to adjust it to your needs. Our sample executive summary has the main elements that you’ll need project executive summary.

Executive Summary Example

For this executive summary example, we’ll imagine a company named ABC Clothing, a small business that manufactures eco-friendly clothing products and it’s preparing a business plan to secure funding from new investors.

Company Description We are ABC Clothing, an environmentally-friendly manufacturer of apparel. We’ve developed a unique method of production and sourcing of materials that allows us to create eco-friendly products at a low cost . We have intellectual property for our production processes and materials, which gives us an advantage in the market.

• Mission: Our mission is to use recycled materials and sustainable methods of production to create clothing products that are great for our customers and our planet.
• Vision: Becoming a leader in the apparel industry while generating a positive impact on the environment.

Products & Services We offer high-quality clothing products for men, women and all genders. (Here you should include pictures of your product portfolio to spark the interest of your readers)

Industry & Market Analysis Even though the fashion industry’s year-over-year growth has been affected by pandemics in recent years, the global apparel market is expected to continue growing at a steady pace. In addition, the market share of sustainable apparel has grown year-over-year at a higher pace than the overall fashion industry.

Marketing Plan Our marketing plan relies on the use of digital marketing strategies and online sales, which gives us a competitive advantage over traditional retailers that focus their marketing efforts on brick-and-mortar stores.

Operations Our production plant is able to recycle different types of plastic and cotton waste to turn it into materials that we use to manufacture our products . We’ve partnered with a transportation company that sorts and distributes our products inside the United States efficiently and cost-effectively.

Financial Planning Our business is profitable, as documented in our balance sheet, income statement and cash flow statement. The company doesn’t have any significant debt that might compromise its continuity. These and other financial factors make it a healthy investment.

Funding Request We’re requesting funding for the expansion of our production capacity, which will allow us to increase our production output in order to meet our increasing customer demand, enter new markets, reduce our costs and improve our competitiveness.

If you’d like to see more executive summary examples for your business plan, you can visit the U.S. small business administration website. They have business plans with executive summary examples you can download and use.

Executive summaries are also a great way to outline the elements of a project plan for a project proposal. Let’s learn what those elements are.

How to Write an Executive Summary for a Project Proposal

An executive summary for your project proposal will capture the most important information from your project management plan. Here’s the structure of our executive summary template:

• Introduction: What’s the purpose of your project?
• Company description: Show why you’re the right team to take on the project.
• Need/problem: What is the problem that it’s solving?
• Unique solution: What is your value proposition and what are the main selling points of your project?
• Proof: Evidence, research and feasibility studies that support how your company can solve the issue.
• Resources: Outline the resources needed for the project
• Return on investment/funding request: Explain the profitability of your project and what’s in for the investors.
• Competition/market analysis: What’s your target market? Who are your competitors? How does your company differentiate from them?
• Marketing plan: Create a marketing plan that describes your company’s marketing strategies, sales and partnership plans.
• Budget/financial planning: What’s the budget that you need for your project plan?
• Timeline: What’s the estimated timeline to complete the project?
• Team: Who are the project team members and why are they qualified?
• Conclusions:  What are the project takeaways?

Now that we’ve learned that executive summaries can vary depending on the type of document you’re working on, you’re ready for the next step.

What to Do After Writing an Executive Summary

As with anything you write, you should always start with a draft. The first draft should hit all the marks addressed above but don’t bog yourself down in making the prose perfect. Think of the first draft as an exploratory mission. You’re gathering all the pertinent information.

Next, you want to thoroughly review the document to ensure that nothing important has been left out or missed. Make sure the focus is sharp and clear, and that it speaks directly to your potential client’s needs.

Proofread for Style & Grammar

But don’t neglect the writing. Be sure that you’re not repeating words, falling into cliché or other hallmarks of bad writing. You don’t want to bore the reader to the point that they miss the reason why you’re the organization that can help them succeed.

You’ve checked the content and the prose, but don’t forget the style. You want to write in a way that’s natural and not overly formal, but one that speaks in the manner of your target audience . If they’re a conservative firm, well then, maybe formality is called for. But more and more modern companies have a casual corporate culture, and formal writing could mistakenly cause them to think of you as old and outdated.

The last run should be proofing the copy. That means double-checking to ensure that spelling is correct, and there are no typos or grammatical mistakes. Whoever wrote the executive summary isn’t the best person to edit it, however. They can easily gloss over errors because of their familiarity with the work. Find someone who excels at copy-editing. If you deliver sloppy content, it shows a lack of professionalism that’ll surely color how a reader thinks of your company.

Criticism of Executive Summaries

While we’re advocating for the proper use of an executive summary, it’d be neglectful to avoid mentioning some critiques. The most common is that an executive summary by design is too simple to capture the complexity of a large and complicated project.

It’s true that many executives might only read the summary, and in so doing, miss the nuance of the proposal. That’s a risk. But if the executive summary follows the guidelines stated above, it should give a full picture of the proposal and create interest for the reader to delve deeper into the documents to get the details.

Remember, executive summaries can be written poorly or well. They can fail to focus on results or the solution to the proposal’s problem or do so in a vague, general way that has no impact on the reader. You can do a hundred things wrong, but if you follow the rules, then the onus falls on the reader.

ProjectManager Turns an Executive Summary Into a Project

Your executive summary got the project approved. Now the real work begins. ProjectManager is award-winning project management software that helps you organize tasks, projects and teams. We have everything you need to manage each phase of your project, so you can complete your work on time and under budget.

Work How You Want

Because project managers and teams work differently, our software is flexible. We have multiple project views, such as the kanban board, which visualizes workflow. Managers like the transparency it provides in the production cycle, while teams get to focus only on those tasks they have the capacity to complete. Are you more comfortable with tasks lists or Gantt charts? We have those, too.

Live Tracking for Better Management

To ensure your project meets time and cost expectations, we have features that monitor and track progress so you can control any deviations that might occur. Our software is cloud-based, so the data you see on our dashboard is always up to date, helping you make better decisions. Make that executive summary a reality with ProjectManager.

You’ve now researched and written a persuasive executive summary to lead your proposal. You’ve put in the work and the potential client sees that and contracts you for the project. However, if you don’t have a reliable set of project management tools like Gantt charts , kanban boards and project calendars at hand to plan, monitor and report on the work, then all that preparation will be for nothing.

ProjectManager is online project management software that gives you real-time data and a collaborative platform to work efficiently and productively. But don’t take our word for it, take a free 30-day trial.

Deliver your projects on time and under budget

Start planning your projects.

• Link to facebook
• Link to linkedin
• Link to twitter
• Link to youtube
• Writing Tips

How to Write an Executive Summary for a Business Plan

3-minute read

• 19th November 2023

An executive summary is the part of a business plan that gives an outline of the main plan. So to write an executive summary, we first need to read the business plan carefully and understand its key points. These key points are what we will condense to form the executive summary. It’s important to ensure that the executive summary can stand alone because plenty of users will read only that and not the main business plan. We could say that the business plan is the original TL;DR (too long; didn’t read)!

But first, let’s take a quick look at what goes into a business plan so we can focus on the sections we need for our executive summary.

What Is a Business Plan?

A business plan is a document that sets out a business’s strategy and the means of achieving it. The business plan usually contains the following sections:

How to Write an Executive Summary

The executive summary covers the same headings as the main business plan but not in so much detail. This is where our editing skills come to the fore!

The following six steps explain how to approach writing the executive summary.

Consider the Audience

Who will be using the summary? The business plan might be issued only to a very specific group of people, in which case, their needs are paramount and specialized. If the business plan is going out on wider release, we need to think about what a general reader will want to know.

Check That It Makes Sense on Its Own

Make sure the summary can be read as a stand-alone document for users who won’t read the whole plan.

Use Formatting Effectively

Make good use of formatting, headings, numbering, and bullets to increase clarity and readability.

Keep It Brief

One page (or around ten percent of the total word count for a large document) is great.

Avoid Jargon

Try to avoid jargon and use straightforward language. Readers of the executive summary might not have business backgrounds (for instance, if they are friend and family investors in a small start-up business).

Find this useful?

Subscribe to our newsletter and get writing tips from our editors straight to your inbox.

Proofread the Executive Summary

The executive summary will very likely be the first – and perhaps the only – part of the business plan some people will read, and it must be error-free to make a professional impression.

●  Consider the audience .

●  Ensure that the executive summary can stand alone.

●  Use formatting tools to good advantage.

●  Keep it brief.

●  Keep it simple.

●  Proofread it.

If you’d like an expert to proofread your business plan – or any of your writing – get in touch!

Share this article:

Post A New Comment

Got content that needs a quick turnaround? Let us polish your work. Explore our editorial business services.

2-minute read

How to Cite the CDC in APA

If you’re writing about health issues, you might need to reference the Centers for Disease...

5-minute read

Six Product Description Generator Tools for Your Product Copy

Introduction If you’re involved with ecommerce, you’re likely familiar with the often painstaking process of...

What Is a Content Editor?

Are you interested in learning more about the role of a content editor and the...

4-minute read

The Benefits of Using an Online Proofreading Service

Proofreading is important to ensure your writing is clear and concise for your readers. Whether...

6 Online AI Presentation Maker Tools

Creating presentations can be time-consuming and frustrating. Trying to construct a visually appealing and informative...

What Is Market Research?

No matter your industry, conducting market research helps you keep up to date with shifting...

Make sure your writing is the best it can be with our expert English proofreading and editing.

.css-s5s6ko{margin-right:42px;color:#F5F4F3;}@media (max-width: 1120px){.css-s5s6ko{margin-right:12px;}} Discover how today’s most successful IT leaders stand out from the rest. .css-1ixh9fn{display:inline-block;}@media (max-width: 480px){.css-1ixh9fn{display:block;margin-top:12px;}} .css-1uaoevr-heading-6{font-size:14px;line-height:24px;font-weight:500;-webkit-text-decoration:underline;text-decoration:underline;color:#F5F4F3;}.css-1uaoevr-heading-6:hover{color:#F5F4F3;} .css-ora5nu-heading-6{display:-webkit-box;display:-webkit-flex;display:-ms-flexbox;display:flex;-webkit-align-items:center;-webkit-box-align:center;-ms-flex-align:center;align-items:center;-webkit-box-pack:start;-ms-flex-pack:start;-webkit-justify-content:flex-start;justify-content:flex-start;color:#0D0E10;-webkit-transition:all 0.3s;transition:all 0.3s;position:relative;font-size:16px;line-height:28px;padding:0;font-size:14px;line-height:24px;font-weight:500;-webkit-text-decoration:underline;text-decoration:underline;color:#F5F4F3;}.css-ora5nu-heading-6:hover{border-bottom:0;color:#CD4848;}.css-ora5nu-heading-6:hover path{fill:#CD4848;}.css-ora5nu-heading-6:hover div{border-color:#CD4848;}.css-ora5nu-heading-6:hover div:before{border-left-color:#CD4848;}.css-ora5nu-heading-6:active{border-bottom:0;background-color:#EBE8E8;color:#0D0E10;}.css-ora5nu-heading-6:active path{fill:#0D0E10;}.css-ora5nu-heading-6:active div{border-color:#0D0E10;}.css-ora5nu-heading-6:active div:before{border-left-color:#0D0E10;}.css-ora5nu-heading-6:hover{color:#F5F4F3;} Read the report .css-1k6cidy{width:11px;height:11px;margin-left:8px;}.css-1k6cidy path{fill:currentColor;}

• Project planning |
• How to write an executive summary, with ...

How to write an executive summary, with examples

The best way to do that is with an executive summary. If you’ve never written an executive summary, this article has all you need to know to plan, write, and share them with your team.

What is an executive summary?

An executive summary is an overview of a document. The length and scope of your executive summary will differ depending on the document it’s summarizing, but in general an executive summary can be anywhere from one to two pages long. In the document, you’ll want to share all of the information your readers and important stakeholders need to know.

Imagine it this way: if your high-level stakeholders were to only read your executive summary, would they have all of the information they need to succeed? If so, your summary has done its job.

You’ll often find executive summaries of:

Business cases

Project proposals

Research documents

Environmental studies

Market surveys

Project plans

In general, there are four parts to any executive summary:

Start with the problem or need the document is solving.

Outline the recommended solution.

Explain the solution’s value.

Wrap up with a conclusion about the importance of the work.

What is an executive summary in project management?

In project management, an executive summary is a way to bring clarity to cross-functional collaborators, team leadership, and project stakeholders . Think of it like a project’s “ elevator pitch ” for team members who don’t have the time or the need to dive into all of the project’s details.

The main difference between an executive summary in project management and a more traditional executive summary in a business plan is that the former should be created at the beginning of your project—whereas the latter should be created after you’ve written your business plan. For example, to write an executive summary of an environmental study, you would compile a report on the results and findings once your study was over. But for an executive summary in project management, you want to cover what the project is aiming to achieve and why those goals matter.

The same four parts apply to an executive summary in project management:

Start with the problem or need the project is solving.  Why is this project happening? What insight, customer feedback, product plan, or other need caused it to come to life?

Outline the recommended solution, or the project’s objectives.  How is the project going to solve the problem you established in the first part? What are the project goals and objectives?

Explain the solution’s value.  Once you’ve finished your project, what will happen? How will this improve and solve the problem you established in the first part?

Wrap up with a conclusion about the importance of the work.  This is another opportunity to reiterate why the problem is important, and why the project matters. It can also be helpful to reference your audience and how your solution will solve their problem. Finally, include any relevant next steps.

If you’ve never written an executive summary before, you might be curious about where it fits into other project management elements. Here’s how executive summaries stack up:

Executive summary vs. project plan

A  project plan  is a blueprint of the key elements your project will accomplish in order to hit your project goals and objectives. Project plans will include your goals, success metrics, stakeholders and roles, budget, milestones and deliverables, timeline and schedule, and communication plan .

An executive summary is a summary of the most important information in your project plan. Think of the absolutely crucial things your management team needs to know when they land in your project, before they even have a chance to look at the project plan—that’s your executive summary.

Executive summary vs. project overview

Project overviews and executive summaries often have similar elements—they both contain a summary of important project information. However, your project overview should be directly attached to your project. There should be a direct line of sight between your project and your project overview.

While you can include your executive summary in your project depending on what type of  project management tool  you use, it may also be a stand-alone document.

Executive summary vs. project objectives

Your executive summary should contain and expand upon your  project objectives  in the second part ( Outline the recommended solution, or the project’s objectives ). In addition to including your project objectives, your executive summary should also include why achieving your project objectives will add value, as well as provide details about how you’re going to get there.

The benefits of an executive summary

You may be asking: why should I write an executive summary for my project? Isn’t the project plan enough?

Well, like we mentioned earlier, not everyone has the time or need to dive into your project and see, from a glance, what the goals are and why they matter.  Work management tools  like Asana help you capture a lot of crucial information about a project, so you and your team have clarity on who’s doing what by when. Your executive summary is designed less for team members who are actively working on the project and more for stakeholders outside of the project who want quick insight and answers about why your project matters.

An effective executive summary gives stakeholders a big-picture view of the entire project and its important points—without requiring them to dive into all the details. Then, if they want more information, they can access the project plan or navigate through tasks in your work management tool.

How to write a great executive summary, with examples

Every executive summary has four parts. In order to write a great executive summary, follow this template. Then once you’ve written your executive summary, read it again to make sure it includes all of the key information your stakeholders need to know.

1. Start with the problem or need the project is solving

At the beginning of your executive summary, start by explaining why this document (and the project it represents) matter. Take some time to outline what the problem is, including any research or customer feedback you’ve gotten . Clarify how this problem is important and relevant to your customers, and why solving it matters.

For example, let’s imagine you work for a watch manufacturing company. Your project is to devise a simpler, cheaper watch that still appeals to luxury buyers while also targeting a new bracket of customers.

Example executive summary:

In recent customer feedback sessions, 52% of customers have expressed a need for a simpler and cheaper version of our product. In surveys of customers who have chosen competitor watches, price is mentioned 87% of the time. To best serve our existing customers, and to branch into new markets, we need to develop a series of watches that we can sell at an appropriate price point for this market.

2. Outline the recommended solution, or the project’s objectives

Now that you’ve outlined the problem, explain what your solution is. Unlike an abstract or outline, you should be  prescriptive  in your solution—that is to say, you should work to convince your readers that your solution is the right one. This is less of a brainstorming section and more of a place to support your recommended solution.

Because you’re creating your executive summary at the beginning of your project, it’s ok if you don’t have all of your deliverables and milestones mapped out. But this is your chance to describe, in broad strokes, what will happen during the project. If you need help formulating a high-level overview of your project’s main deliverables and timeline, consider creating a  project roadmap  before diving into your executive summary.

Continuing our example executive summary:

Our new watch series will begin at 20% cheaper than our current cheapest option, with the potential for 40%+ cheaper options depending on material and movement. In order to offer these prices, we will do the following:

Offer watches in new materials, including potentially silicone or wood

Use high-quality quartz movement instead of in-house automatic movement

Introduce customizable band options, with a focus on choice and flexibility over traditional luxury

Note that every watch will still be rigorously quality controlled in order to maintain the same world-class speed and precision of our current offerings.

3. Explain the solution’s value

At this point, you begin to get into more details about how your solution will impact and improve upon the problem you outlined in the beginning. What, if any, results do you expect? This is the section to include any relevant financial information, project risks, or potential benefits. You should also relate this project back to your company goals or  OKRs . How does this work map to your company objectives?

With new offerings that are between 20% and 40% cheaper than our current cheapest option, we expect to be able to break into the casual watch market, while still supporting our luxury brand. That will help us hit FY22’s Objective 3: Expanding the brand. These new offerings have the potential to bring in upwards of three million dollars in profits annually, which will help us hit FY22’s Objective 1: 7 million dollars in annual profit.

Early customer feedback sessions indicate that cheaper options will not impact the value or prestige of the luxury brand, though this is a risk that should be factored in during design. In order to mitigate that risk, the product marketing team will begin working on their go-to-market strategy six months before the launch.

4. Wrap up with a conclusion about the importance of the work

Now that you’ve shared all of this important information with executive stakeholders, this final section is your chance to guide their understanding of the impact and importance of this work on the organization. What, if anything, should they take away from your executive summary?

To round out our example executive summary:

Cheaper and varied offerings not only allow us to break into a new market—it will also expand our brand in a positive way. With the attention from these new offerings, plus the anticipated demand for cheaper watches, we expect to increase market share by 2% annually. For more information, read our  go-to-market strategy  and  customer feedback documentation .

Example of an executive summary

When you put it all together, this is what your executive summary might look like:

Common mistakes people make when writing executive summaries

You’re not going to become an executive summary-writing pro overnight, and that’s ok. As you get started, use the four-part template provided in this article as a guide. Then, as you continue to hone your executive summary writing skills, here are a few common pitfalls to avoid:

Avoid using jargon

Your executive summary is a document that anyone, from project contributors to executive stakeholders, should be able to read and understand. Remember that you’re much closer to the daily work and individual tasks than your stakeholders will be, so read your executive summary once over to make sure there’s no unnecessary jargon. Where you can, explain the jargon, or skip it all together.

Remember: this isn’t a full report

Your executive summary is just that—a summary. If you find yourself getting into the details of specific tasks, due dates, and attachments, try taking a step back and asking yourself if that information really belongs in your executive summary. Some details are important—you want your summary to be actionable and engaging. But keep in mind that the wealth of information in your project will be captured in your  work management tool , not your executive summary.

Make sure the summary can stand alone

You know this project inside and out, but your stakeholders won’t. Once you’ve written your executive summary, take a second look to make sure the summary can stand on its own. Is there any context your stakeholders need in order to understand the summary? If so, weave it into your executive summary, or consider linking out to it as additional information.

Always proofread

Your executive summary is a living document, and if you miss a typo you can always go back in and fix it. But it never hurts to proofread or send to a colleague for a fresh set of eyes.

In summary: an executive summary is a must-have

Executive summaries are a great way to get everyone up to date and on the same page about your project. If you have a lot of project stakeholders who need quick insight into what the project is solving and why it matters, an executive summary is the perfect way to give them the information they need.

For more tips about how to connect high-level strategy and plans to daily execution, read our article about strategic planning .

Related resources

Unmanaged business goals don’t work. Here’s what does.

How Asana uses work management to drive product development

How Asana uses work management to streamline project intake processes

How Asana uses work management for smoother creative production

Executive Summary Examples for Business Plans, Project Plans, and Research Projects

By Kate Eby | February 8, 2024

• Share on Facebook
• Share on LinkedIn

Link copied

Executive summaries allow decision-makers to quickly grasp the key points of important documents and make decisions. We’ve collected a variety of executive summary examples and templates that you can use as models for your executive summaries. 

Included in this article, you’ll find a  business plan executive summary example , a  project proposal executive summary example , a  research report executive summary example , and more. Plus, learn  how to fix common executive summary mistakes .

What Are the Main Components of an Executive Summary?

An  executive summary is a concise overview of a larger document, report, or proposal. It gives high-level executives or decision-makers a quick understanding of the main points of a longer document without requiring them to read the whole text.   

These are the components you might include in an executive summary:   

• Problem Statement: Clearly state the problem or challenge the company, product, or project addresses.
• Key Proposition: Outline the proposed solution or key value proposition.
• Market Analysis: Summarize findings about the market, customer needs, or competition.
• Key Features and Benefits: Highlight the main features or benefits of the proposed solution or strategy.
• Financial Summary: Provide a snapshot of financial aspects, such as cost, revenue projections, or return on investment (ROI).
• Next Steps: Briefly describe the next steps or strategy for implementation.

Simple Executive Summary Example

The following simple executive summary presents a concise statement of key findings and links them directly to a strategic recommendation. It provides a clear snapshot of the situation and the proposed action, which is essential for an executive summary.

Problem Statement

Many small businesses struggle with inefficient inventory management, leading to lost sales and increased operational costs.

Key Proposition

Our company proposes an AI-driven inventory management system that automates tracking and forecasting, tailored for small businesses.

Market Analysis

Research shows a 40 percent increase in demand for automated inventory solutions in the small business sector, with a significant gap in affordable, user-friendly options.

Key Features and Benefits

The system offers real-time inventory tracking, predictive restocking alerts, and an intuitive interface, reducing inventory errors by an estimated 50 percent.

Financial Summary

Our projected development cost is five hundred thousand dollars with a break-even point in 18 months. The expected ROI is 200 percent in three years, tapping into a market with a potential revenue of five million dollars annually.

Development will commence in Q1 2024, with a pilot launch in Q3. Full market release is scheduled for Q1 2025, followed by targeted marketing campaigns and customer feedback integration for further enhancements.

Executive Summary Template

Download a Blank Executive Summary Template for

Microsoft Word | Google Docs

Download an Example Executive Summary Template for

Available in blank and example versions, this executive summary template guides you in succinctly presenting key information about your business plan or project to stakeholders. Simply fill in each section with relevant details to create a concise overview that highlights problems, solutions, market potential, product features, financials, and next steps.

Business Plan Executive Summary Example

Review the following example for a business plan executive summary of an eco-friendly transportation company. This example provides a clear, brief overview that is essential when you want to engage stakeholders and set the stage for more detailed discussions.

In urban areas, the lack of convenient, eco-friendly transportation options leads to increased traffic congestion and pollution.

GreenGo Mobility Solutions proposes a network of e-bike sharing stations, offering an affordable, sustainable, and flexible transportation alternative.

There is a growing trend toward eco-friendly transport in cities, with a 60 percent increase in e-bike usage. Surveys show high interest among urban commuters for more accessible e-bike options.

Key Features and Benefits 

Our e-bikes are equipped with GPS tracking and easy-to-use interfaces. The bikes are designed for urban environments, offering a convenient and environmentally friendly commuting option.

The project requires an initial investment of two million dollars, with projected annual revenue of five million dollars by the third year. We anticipate a break-even point within two years, based on subscription and pay-per-use models.

Marketing Plan Executive Summary Example

In the following example, an executive summary outlines a marketing initiative within a company, detailing both the challenge and the strategic response. It provides a clear overview of the marketing plan’s objectives, actions, and expected outcomes.

We have seen a decline in new user adoption of our company's flagship software product over the past year.

Initiate a Revitalize and Engage campaign, focusing on updating the product’s user interface and enhancing customer engagement through social media and community building.

Competitor analysis and customer feedback indicate a need for more intuitive design and stronger community presence to attract and retain users.

The campaign will introduce a sleek, user-friendly interface and a robust online community platform, aiming to increase user engagement and satisfaction.

The campaign requires a budget of five hundred thousand dollars, with an expected increase in user adoption rates by 20 percent within the first year post-implementation.

Begin a UI redesign in Q2 2024, launch a social media engagement strategy in Q3, and roll out the updated product with community features in Q4.

Project Proposal Executive Summary Example

The example executive summary below demonstrates a well-structured project proposal that succinctly identifies a specific challenge and proposes an actionable solution. It provides a comprehensive snapshot of the project, including its rationale, expected benefits, financial implications, and implementation timeline.

Our current customer relationship management (CRM) system is outdated, leading to inefficiencies in sales tracking and client management.

We propose the development and implementation of a new, custom-built CRM system to streamline sales processes and enhance customer engagement.

Internal analysis indicates a 35 percent increase in process efficiency with a modern CRM system, while competitor benchmarking shows significant advantages in customer retention.

The new CRM will offer real-time sales tracking, automated client communication tools, and advanced analytics features, improving sales efficiency and customer satisfaction.

The estimated project cost is two million dollars, with a projected increase in sales efficiency by 50 percent and customer retention by 20 percent within two years.

Initiate the project in Q2 2024, with phase-wise implementation and employee training, aiming for full deployment by the end of Q4 2024.

Startup Executive Summary Example

Startups need to communicate their vision to potential investors and key stakeholders. In this example, an executive summary helps convey the startup’s vision with a concise summary of the business opportunity, unique selling proposition, market potential, and action plan.

There is a growing demand for sustainable and eco-friendly home cleaning products, but the market lacks options that are both effective and affordable.

EcoClean Innovations is a startup offering a line of environmentally friendly, biodegradable cleaning products made from natural ingredients, catering to eco-conscious consumers.

Market trends show a 50 percent increase in consumer preference for green homecare products, with a significant gap in cost-effective options.

Our products are non-toxic and competitively priced, and they have a minimal environmental footprint, addressing the need for effective and sustainable cleaning solutions.

We require an initial investment of one million dollars, projecting a 30 percent market penetration in the eco-friendly segment within the first two years.

Launch with an initial range of products by Q3 2024, followed by marketing campaigns targeting eco-conscious communities and online marketplaces.

Real Estate Development Executive Summary Example

In the following executive summary example for a construction project, the author outlines their vision for the Greenway Residential Complex. This summary captures the essence of the construction project proposal, presenting key information in a concise and structured format.

The growing urban population in Metro City has led to a shortage of affordable, eco-friendly housing options, resulting in increased living costs and environmental concerns. Key Proposition

Our project proposes the development of the Greenway Residential Complex, a sustainable and affordable housing solution. Utilizing innovative construction methods and eco-friendly materials, the complex aims to provide a balanced urban living experience that is both cost-effective and environmentally responsible.

Research indicates a high demand for eco-conscious housing in Metro City, with a market gap in affordable segments. Surveys show that young families and professionals are actively seeking sustainable living options that align with their environmental values and budget constraints.

• Sustainable design incorporating solar panels, rainwater harvesting, and green spaces
• Affordable pricing, targeting middle-income families and young professionals
• Proximity to public transportation and city centers, reducing commute times and the carbon footprint
• High-quality, energy-efficient building materials, ensuring lower utility costs and a smaller environmental impact
• Estimated project cost: Fifty million dollars
• Anticipated revenue from sales: Seventy million dollars, with a projected ROI of 40 percent over five years
• Funding secured from green building grants and private investors
• Finalize construction permits and approvals by Q2 2024.
• Begin construction in Q3 2024, with a projected completion date in Q4 2026.
• Launch a marketing campaign targeting eco-conscious families and professionals. Tip:  In this example, notice how helpful it is to use bullet points to convey certain information. Using bulleted lists is a great way to organize and present information in an executive summary.

Construction Project Executive Summary Example

Construction projects have many moving parts, which means executive summaries need to capture a lot of information in a small space. Consider a construction-specific executive summary template to ensure that stakeholders are keyed into the most vital project information.

Download a Blank Construction Project Executive Summary Template for

Microsoft Word |  Adobe PDF | Google Docs

Download an Example Construction Project Executive Summary Template for

Microsoft Word | Adobe PDF | Google Docs

This construction project executive summary template allows users to give a high-level overview of the key aspects of a project, such as status, risks, issues, and changes. Available in both blank and sample versions, this editable template condenses complex project information into an easily digestible format. To use it, simply fill in each section with relevant, concise information about the current state and progress of your construction project, ensuring it remains updated and reflective of any changes or developments.

Renewable Energy Initiative Executive Summary Example

A renewable energy initiative executive summary should highlight the project’s objectives, strategies, and potential impact, as well as its contribution to environmental sustainability. In the following example, the summary articulates the project’s vision and its alignment with global environmental goals.

The urgent need to address environmental challenges and the increasing global demand for energy underscore the importance of transitioning to renewable energy sources. The reliance on traditional fossil fuels is unsustainable and contributes significantly to climate change.

The SunWind Project is a pioneering initiative combining solar and wind power to create a robust and sustainable energy solution. This project aims to leverage the strengths of both solar and wind energy, ensuring a continuous and reliable power supply while significantly reducing carbon emissions.

The renewable energy sector is experiencing rapid growth, fueled by global environmental policies and a rising consumer preference for sustainable energy. This shift presents an opportunity for the SunWind Project.

The project is unique in its integration of solar panels and wind turbines, ensuring consistent energy production under varying weather conditions. This scalable approach is designed to adapt to increasing energy demands. By significantly reducing the carbon footprint, the project supports global environmental sustainability goals and has the potential to power thousands of homes and businesses.

The SunWind Project has an estimated cost of two hundred million dollars, with projected revenues from energy sales anticipated to be around three hundred million dollars over the next 10 years. This represents a potential ROI of 50 percent. The project is poised to benefit from green energy grants, government subsidies, and private investments.

Immediate steps include securing the necessary environmental permits and clearances. The construction phase, slated to begin in the second quarter of 2024, will focus on installing solar panels and wind turbines, with a goal to commence energy production by the end of 2025.

One-Paragraph Healthcare Executive Summary Example

An executive summary of a healthcare initiative needs to do the following: concisely identify a pressing healthcare issue, present a tailored solution with its benefits, summarize market needs and competition, and outline the financial viability and next steps. 

In the following example, notice how an executive summary can capture all key elements in a single paragraph:

The HealthFirst Community Wellness Initiative addresses the critical problem of rising chronic illness rates in urban areas, focusing on diabetes and heart disease. Our comprehensive solution involves launching community health centers that provide preventive care, lifestyle education, and regular health screenings, as well as cater to the specific needs of urban populations. Market analysis indicates a significant demand for accessible healthcare services in these areas, with a lack of preventive and educational resources being a key gap. The initiative’s main features include state-of-the-art diagnostic tools, personalized health plans, and collaboration with local fitness and nutrition experts, offering benefits such as improved community health outcomes and reduced healthcare costs. Financially, the project is expected to be sustainable, with a mix of funding from public health grants and private partnerships. We are projecting a positive ROI within three years due to reduced hospital admissions. The next steps involve securing funding, establishing partnerships with local health professionals and organizations, and launching a pilot center in the downtown district, with a plan to expand to five more urban areas within two years.

Nonprofit Executive Summary Example

An executive summary for a nonprofit organization should communicate the essence of a project or initiative to donors and volunteers. It should concisely outline the organization’s mission, goals, and key solutions while also detailing strategies, actions, and their impact.

  This  executive summary example from Doctors Without Borders emphasizes the inadequacy of current Universal Health Coverage (UHC) agendas in meeting the needs of vulnerable populations. It then proposes six key recommendations to address these shortcomings. 

This executive summary succinctly identifies the core issue — inequitable access to healthcare — and clearly outlines actionable recommendations. This document helps facilitate advocacy and policy change, which are central to this organization’s goals.

Research Report Executive Summary Example

An executive summary in a research report concisely presents the key findings, conclusions, and recommendations derived from a research project. It covers elements such as the project topic, background, research methods, and critical insights, tailored for quick understanding and decision-making.

In this real-world  exampl e from the ASPCA , the executive summary details a study showing that veterinary hospitals’ proactive discussions about pet health insurance positively impacted hospital revenue and increased patient visits. 

Notice how this summary concisely outlines the study’s purpose, methodology, and significant findings, providing a clear overview for readers. In addition, it highlights the study’s relevance and implications for veterinary practices, emphasizing the practical benefits of educating clients about pet health insurance.

Research Report Executive Summary Template

Download a Blank Research Report Executive Summary Template for

Microsoft Word |  Adobe PDF | Google Docs Download an Example Research Report Executive Summary Template for

To create your own research report executive summary, download this customizable template. Available in blank and example versions and three printable formats, this template serves as a structured guide to organize and present the key components of a research report. Simply fill in each section with specific details about your research, including the project topic, background information, methods used, conclusions, and recommendations.

Research Project Proposal Executive Summary Example

An executive summary for a research project focuses mainly on the research question, methods, and expected outcomes. These summaries often point out how important the research could be and what impact it might have on the field.  

Download a Blank Research Project Proposal Executive Summary Template for Microsoft Word | Google Docs  

Download an Example Research Project Proposal Executive Template for Microsoft Word | Google Docs

Teams can use this one-page executive summary — available in a blank or sample version — to concisely present the key elements of a research project to stakeholders, potential funders, or academic committees. By structuring the summary with specific sections such as background, objectives, and methodology, you can be sure that you’ve clearly and briefly outlined all critical aspects of your research.

Executive Summary Slide Example

Executive summaries are often documents that one distributes to executives, potential investors, and other stakeholders. However, slideshow presentations can facilitate a more interactive discussion. Plus, the inclusion of charts, graphs, and other images can better illustrate key points.  

Download an Example Single Slide Executive Summary Template for

PowerPoint | Google Slides

Download a Blank Single Slide Executive Summary Template for

This executive summary slide template is a versatile tool for succinctly conveying key project information in a single, visually engaging slide. You can enter your project information in the blank template or download the sample version for additional guidance. Input relevant details in each section, such as an overview of your project and next steps. The template allows users to insert their own text, graphics, and data. Copy your completed slide into a longer presentation, or use it on its own as a visual complement to any stakeholder presentation.

How to Improve Your Executive Summary

A poorly constructed executive summary can serve as an instructive example of what to avoid. Ineffective executive summaries might be too detailed or technical, lack focus on key points, or omit a clear call to action. 

Here are examples of the three most common mistakes found in executive summaries:

Includes Too Many Details or Technical Information

This example demonstrates one of the most common mistakes, which is including too much detail or overly technical language. It dives deeply into the specific technical specifications of the equipment and financial metrics, which might be overwhelming for readers. A more effective executive summary would focus on the broader objectives, expected impacts, and benefits of the project in a language that is accessible to a non-technical audience.

Lacks Focus on Key Points  

Sometimes, summaries fail to clearly highlight the most critical aspects of the project or proposal. This summary lacks focus concerning the key points of the Pathways to Knowledge project. A more effective summary would concisely state the project’s goal, significance, and anticipated outcomes.

Omits a Clear Call to Action or Conclusion  

Failing to include a clear conclusion or call to action is another common mistake. The summary should not only inform but also persuade and guide the reader toward the desired action or decision. This summary outlines the project’s goals and structure, but omits a clear call to action. The document doesn’t specify what is expected from the reader or potential stakeholders, such as support, partnership, funding, or involvement in the project.

Corrected Example

To create a more effective example, start by removing overly technical details. (Stakeholders don’t need to know the specific standards with which the training modules are aligned or which types of processors power your computers.) Next, take out unnecessary details that stray from the main point of the project. An executive summary is not the place to discuss the origins of the project idea or the elements your team has not yet decided on. Finally, always conclude your executive summary with a clear call to action.

The Pathways to Knowledge project is a pioneering educational initiative by a nonprofit organization, aimed at bridging the educational divide in underprivileged and remote communities. This project involves the deployment of Mobile Education Hubs: state-of-the-art, solar-powered mobile units that are equipped with educational resources, technology, and internet access. These hubs are designed to travel to various underserved areas, providing children and adults with access to quality educational materials, online learning platforms, and virtual tutoring. Each hub also hosts workshops and seminars led by educators and experts, covering a wide range of subjects from basic literacy and numeracy to vocational training and digital literacy. The initiative seeks to empower communities by enhancing educational opportunities, fostering a culture of lifelong learning, and equipping individuals with the skills necessary for the 21st-century job market. By focusing on accessibility and adaptability, the Pathways to Knowledge project aspires to create a ripple effect of educational advancement and social upliftment across diverse communities.

Master the Art of Writing Executive Summaries with Examples for Business Plans, Project Plans, and Research Projects from Smartsheet

Empower your people to go above and beyond with a flexible platform designed to match the needs of your team — and adapt as those needs change. 

The Smartsheet platform makes it easy to plan, capture, manage, and report on work from anywhere, helping your team be more effective and get more done. Report on key metrics and get real-time visibility into work as it happens with roll-up reports, dashboards, and automated workflows built to keep your team connected and informed. 

When teams have clarity into the work getting done, there’s no telling how much more they can accomplish in the same amount of time.  Try Smartsheet for free, today.

Discover why over 90% of Fortune 100 companies trust Smartsheet to get work done.

• 400+ Sample Business Plans
• WHY UPMETRICS?

Customers Success Stories

Business Plan Course

Strategic Canvas Templates

E-books, Guides & More

Business consultants

Entrepreneurs and Small Business

Accelerators and Incubators

Educators & Business Schools

Students & Scholars

AI Business Plan Generator

Financial Forecasting

AI Assistance

Ai Pitch Deck Generator

Stratrgic Planning

See How Upmetrics Works  →

• Sample Plans

Small Business Tools

How to Write a Great Executive Summary in a Business Plan

Free Executive Summary Template

• March 2, 2024

10 Min Read

We all know that pursuing investors for funding or entrepreneurs for partnership is a challenging task. But an engaging executive summary makes it easy for you.

A well-written executive summary acts as the first impression in convincing your readers of anything related to your business.

But the question is how to write one!

See, include all the sections in the summary, highlight all the main points of the business plan, keep the language simple & clear, and voila, you will have a nice executive summary.

But if you want to know more about how to write an engaging executive summary in a business plan with all the tips, then hop on, let’s begin.

What is an executive summary in a business plan?

An executive summary is a concise and compelling overview of the whole business plan. It includes and highlights all the key points of the plan as an introduction.

It should be clear, well-structured, and engaging, prompting the reader to want to learn more. It also should provide enough information to convey the business plan’s purpose.

Simply put, it is an outline of the business plan. And it helps readers to understand your business before making any decision.

Purpose of an executive summary

An Executive summary is one of the core parts of the business plan, and it has many purposes instead of just being a section, let’s see:

Concise overview

An executive summary is a short version of your business plan. Since not everyone has time to read the full plan, a well-crafted summary gives investors a quick overview of your business, helping them make decisions right there and then.

Decision-making

Executive summary plays a crucial role in the decision-making journey. As it presents all the facts and key findings of the business concisely, it helps decision-makers get a quick overview in no time. This way, readers do not have that fear of not making an informed decision.

Accessibility

An executive summary makes a document more accessible to a wider audience. Those who are not an expert in understanding all the technicalities of the plan can get the gist of the entire business plan by reading an executive summary.

Now that you know the importance of writing an executive summary, let us move forward with the topic of how to actually write one.

Create winning Business Plans with our

Plans starting from $7/month

How to write an executive summary for a business plan

1. introduce the purpose.

First things first, let your readers know what is this all about—meaning what your document is all about and which business you are doing.

Then introduce the purpose your business plan is going to address. This way you are setting the base of your business plan, giving a clear idea to the readers about why this document is important.

2. Give the company description

Here, briefly describe your company. It includes things like business name , location, owners, company history, and other such things of the business that matter.

If you are just starting up, then focus on the qualifications and responsibilities of your team members.

Highlight any key milestones or achievements demonstrating your company’s growth and success. This section should give readers a clear understanding of what your company does, why it exists, and how it has evolved.

3. State the problem and how will you solve it

Mention the problem in the market first that your product or service will help solve. This will make your readers confident about your market research and your offerings.

Then showcase the innovative solution your business will offer. Highlight the unique value proposition of your business along with it. Also, mention how your product or service is a market fit and has demand in the industry.

4. Outline market analysis

Once you have defined the problem and solution, it is time to mention the market landscape for your business. It should include the market size, expected growth, target market, and all other demographics.

Also, highlight your competitive advantage here. And mention the market share you are going to capture.

5. Define your business model

In this section, mention how your business earns the revenue and how it works. It sets a clear picture of how your company will make a profit and cover the costs.

This information is necessary for investors, so make sure to present it engagingly and realistically.

6. Give an overview of your marketing and sales strategies

Once you start the business, one of the most important things investors would want to know is how will you attract customers. Therefore, this section is all about what strategies you will implement to bring in new customers and how your business will retain them.

It includes the brand message, logo, marketing medium, and all other tools you have for marketing. Apart from that, it also showcases the seriousness of reaching the sales goal of your business.

7. Mention the team you hired or will hire

Provide an overview of the organizational structure and current team. Introduce yourself and your team members, along with their qualifications and roles in the firm.

Also, identify any gaps and the needs of other employees in the business. In short, this section gives readers a clear understanding of your team’s capabilities and how you plan to leverage their skills for the success of your business.

8. Mention your financial summary

In this part, you outline your company’s current brief financial summary and future projections. It includes annual revenue, sales and expenses, and milestones for the coming years.

For existing companies, former years’ revenue and sales numbers can act as evidence to support forecasts. For startups, it is suggested to include all the costs as it will help investors to know completely about the financial picture of your company before making any decision.

9. Funding requirement

If you are preparing your business plan’s executive summary for seeking funding, then make sure to include this section. Make sure what you include in this section and what you ask practically.

Some of the questions you need to answer in this section are:

• How much funding do you need in total?
• How much have you already secured?
• How much are you seeking from the current readers?
• Where are you going to use this funding?
• How much will this funding impact your business?

Answering these questions will help investors get a quick look at your funding requirements without having to wait till the end of your business plan. This saves time and is more efficient.

How long should an executive summary be?

Before you write an executive summary, this question might have occurred to you a lot more times what is the ideal length of a summary, right? Worry not, let’s discuss the length here.

Keep your executive summary as short as possible, because your audience has limited time and attention span.

Generally, executive summaries are 1-2 pages long, but you can exceed this norm if necessary. However, it is necessary to consider the length of the business plan too before you finalize the length of the executive summary.

The key over here is to get the reader’s attention and highlight all the essential points of a detailed business plan.

Tips for writing an effective executive summary

Understand your audience.

Before writing the summary, you need to first know and understand your audience. Consider their background, knowledge level, and expectations to ensure that the summary matches their expectations.

Keep it as an elevator pitch

Remember, executive summaries are like elevator pitches. You’re selling your business just by reading the focus points only.

Perhaps readers would want to know every aspect of your business, and with a well-written summary, they can have the essence of the business in no time.

Keep it short and sweet

Ideally, a great executive summary is about a page or two. Whatever length seems ideal to you, make sure to make it a brief and not a detailed one. Keep it as short as you can without missing the needed part.

Prefer to write it last

Though being the first sections, entrepreneurs generally choose to write the executive summary at the end, till then, they have a thorough knowledge of the entire plan.

And it is easier to write the summary after having all the focus points to write about. So, prefer writing the summary in the end.

Use a structured format and highlight the main points first

You have to present your summary in an organized structure, though change the order as per the importance. You can highlight the main things first and then gradually go to the financial plan. In short, in skim reading, your audience should get the crux.

Example of a business plan executive summary

Business Name: Elegance Bistro Location: Queens, New York Type of Business: Restaurant

Elegance Bistro is a new upscale dining establishment located in the vibrant borough of Queens, New York. Our mission is to provide an elegant and unforgettable dining experience, combining exceptional service with a curated menu of gourmet dishes inspired by global cuisine.

Despite the diverse culinary scene in Queens, there is a lack of upscale dining options that offer a refined ambiance and high-quality cuisine. Residents and visitors seeking an upscale dining experience often have to travel to Manhattan, leading to a gap in the market that Elegance Bistro aims to fill.

Elegance Bistro will provide a sophisticated dining experience that showcases the rich diversity of flavors and ingredients found in global cuisine. Our menu will feature a selection of expertly crafted dishes made from locally sourced, seasonal ingredients, ensuring freshness and quality in every bite.

Market Analysis

Queens is a thriving culinary destination, known for its diverse population and vibrant food scene. With a growing number of residents and tourists seeking unique dining experiences, there is a significant opportunity for a high-end restaurant like Elegance Bistro to attract a discerning clientele. There is a competition for the same, but our dining experience with appealing ambiance stands out from all.

Our curated menu includes all the culinary dishes that are popular among New Yorkers and tourists.

Our mission at Elegance Bistro is to elevate the dining experience in Queens by offering exceptional cuisine, impeccable service, and a warm, inviting atmosphere that celebrates the art of dining.

Financial Position

Based on our market research and projected sales, we anticipate generating annual revenues of $1.5 million in our first year of operation, with a net profit margin of 15%. Our startup costs are estimated at $500,000, which will be primarily used for leasehold improvements, kitchen equipment, and initial marketing efforts.

Funding Requirement

To fund our startup costs and initial operating expenses, we are seeking a total investment of $750,000. This will allow us to launch Elegance Bistro successfully and establish a strong presence in the Queens dining scene.

So, finally, you know what it takes to write an engaging executive summary. We hope this has been helpful to you in your writing journey.

If you are still confused or don’t know where to start, then you can always rely on good business plan software like Upmetrics. It will provide you with step-by-step guidance, so you don’t have to roam to and fro for the next step.

Build your Business Plan Faster

with step-by-step Guidance & AI Assistance.

Frequently Asked Questions

Is executive summary first in the business plan.

Yes, an executive summary is the first chapter of the business plan. Yet, people prefer to write it at the last, after having the full knowledge of the whole business plan.

What writing style should I use?

An executive summary serves as the introduction to the business plan. So, ideally, it should be in a professional tone. However, whichever writing style you choose, make sure it is clear, concise, engaging, and maintains professionalism. 

What are the key elements of an effective executive summary?

Key elements of an effective executive summary are:

• Introduction
• Problem statement
• Market analysis
• Value proposition
• Business model
• Financial Overview
• Implementation plan
• Call to action

By including these key elements in your executive summary, you can effectively communicate the key points of your business and make a strong impression on your audience.

What is the best format for an executive summary?

The best format for an executive summary is one that is clear, concise, and well-organized.

It should provide a brief overview of the main points of the document, including the purpose, problem & solution, market analysis, unique value proposition, business model, financial position, team, milestones, funding requirements, and call to action.

The format should be easy to read and understand, with headings and subheadings to break up the text.

When should I update my executive summary?

You should update your executive summary whenever any necessary changes to your business impact the information in the summary.

If there are no frequent changes, then you should change your executive summary at least once in a quarter, two quarters, or a year.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

Related Articles

How to Prepare a Financial Plan for Startup Business (w/ example)

How to Write a Business Plan Executive Summary: Tips & Example

Write a Mission Statement For Your Business Plan: Explained with Examples

Reach your goals with accurate planning.

No Risk – Cancel at Any Time – 15 Day Money Back Guarantee

Popular Templates

How to Write an Executive Summary (With Example)

Saving time and effort with Notta, starting from today!

Keeping up with long documents like business plans or project proposals can be a tricky task. I wrote my first business plan when I started my company (so I know the firsthand challenges). I've learned a lot since then — and, most importantly, the need to put a lot of thought into it and make ideas work.

A business plan or project proposal may not seem like the most important or complicated document, but it can guide the entire company and can even be shared with investors to win prospects. But there's another document that's equally important — and that is an executive summary.

It's a short, informative version of the long document — business plan or proposal — that includes all the critical information anyone needs in one go. Here's how to write an executive summary (with examples) so you never have to read the entire report just to get a few details.

What is an Executive Summary?

Before I get into how to write an executive summary, let's first understand what it is. An executive summary is a short, informative overview of a long document that clearly defines the main idea of the business plan, report paper, or project proposal.

Think of it as boiling the entire document (concept, vision, outcome, and everything in between) down to a few pages. Its length typically depends on the particular document you're summarizing — and can be somewhere between 1-2 pages.

Of course, executive summaries are unique documents, so there's no one-size-fits-all. Depending on what you're summarizing — a business plan, project proposal, annual report, or research document — your summary will look a little different.

How to Write a Great Executive Summary?

Writing a long document and summarizing only the important information from one are two different things. Unlike your original document, which outlines everything in detail, the executive summary condenses the main idea into a few pages.

Here's how to write an executive summary with a clear roadmap.

Step 1: Tell Your Company's Mission & Vision

Start the executive summary by telling your company's story or the mission statement of the business plan — and try to communicate the vision you have for it. It should reflect your goals, values, and other important details that were discussed in the business plan — setting the tone for the rest of the summary. Ask yourself if the first few lines will make your business sound profitable, credible, and feasible.

Step 2: Highlight the Project's Objectives

Next, focus on the project objectives or discuss the problem you will be solving. Your aim here is to provide readers with a comprehensive view of the key findings and insights from the long document. You might even include a basic explanation about the target market and address the pain points for more clarity.

Step 3: Explain the Solution

Describe the project in detail and lean heavily on the solutions — in an authoritative language. Identifying the target audience and writing the project objectives isn't enough, you'll need to provide solutions or any results that they can expect. You can even include project risks, relevant financial information, and potential benefits covered in the business document.

Step 4: Wrap with a Conclusion

You've successfully covered the project objectives (problems) and provided the solutions — great! But as we've often heard, 'It ain't over till it's over,' and the summary ain't over yet. At the end, conclude by highlighting the key findings, presenting the key recommendations, and writing the next actionable steps (future plans) — guiding readers on what to do next.

Example of an Executive Summary

The simple executive summary for the business plan template outlines the key business objectives, problems, and solutions — in only 1-2 pages. Compiling all this information into one document will help the readers (business partners, team, and even investors) understand the main idea and navigate the plan.

Here's an executive summary example for a business plan I put together to give you a quick idea of what it might look like once it is complete.

Example: Executive Summary Format for Business Plans

[Your Company Name]: XYZ [Business Plan Title] [Date] [Mission] The mission of XYZ is to deliver products that are sustainable, eco-friendly, and ethical. [Vision] The vision is to play a major role in shaping a sustainable world. [The Product] At XYZ, we create products and services that meet the customer requirements — and are made from eco-friendly, recyclable, and renewable materials. [Position Yourself as an Expert] With over three major players that are dominating the market, we stand out by manufacturing more environment-friendly products. [The Future Plans] By 2030, we will launch a recycling program in five big cities. Looking ahead to 2050, our goal is to supply recyclable and renewable products to all top-tier brands.

Tips for Writing an Effective Executive Summary

Before you start putting the executive summary together, ask yourself whether you understand the business plan. Once you've read it properly, here are a few more tips for writing an effective business plan executive summary .

Write for Your Audience

The tone, language, pronoun use, and personalization of the executive summary will depend on your audience. If the people reading the summary have a technical background, a mix of professional and technical words would make sense.

You'll need to extract all the important information from the business plan and write it in 1-2 pages — and it's only possible if you understand the main idea before writing and write straight to the point. Remember your audience is reading the summary because they want short and crisp information — so don't overcomplicate it.

Use Engaging Language

Your executive summary should reflect the truth and key highlights of the business plan in an engaging tone. Keep the executive summary professional and concise — that's true to the target audience and your company. Many people often miss writing facts and figures — and that's where they make a mistake. I'd recommend you focus on presenting facts, figures, and evidence in a straightforward and engaging way.

Ask Others to Review the Summary

Great ideas can come from any level — even if they're not directly related to the business plan. Once your business plan executive summary is ready, ask someone from your team to review it. You might also ask your senior or mentor to read the summary and give you fair feedback — and, most importantly, meet the reason behind writing it.

Use the AI Summarizer App

There's very little chance that the first time you try to write a summary, the output is exactly what you're looking for. You need to read, write, test, refine, write, test, and so on until you get an outcome you're happy with.

Automation with AI keeps systems running smoothly — and generating an executive summary is no exception. If you don't want to struggle manually, you can even check out the popular AI summarizers — and see if it meets your needs.

One such tool is the Notta Web App which comes with some amazing features like recording , transcribing , and summarizing media (audio and video) files. If the business plan is in recorded (audio or video) format, you can transcribe the speech to text using the Notta Web App.

When you have the transcript ready, just use the Notta AI Summary Generator to summarize the key highlights, different chapters, and action items — with the help of advanced AI. You can check my ultimate AI summarizers guide , where I've reviewed the 10 best apps for generating executive summaries.

Try Notta - the best online transcription & summarization tool. Transcribe and summarize your conversations and meetings quickly with high accuracy.

Start for Free

How Long Should an Executive Summary Be?

Typically, an executive summary should be 1-2 pages long — but that's not the exact length that you should follow. That's because there's no hard and fast rule to 'how long should an executive summary be.'

But there's a trick: the executive summary length will directly depend on the document you are summarizing. In the end, the length should engage the readers and keep them hooked till the end. Try not to include any fluff and focus only on the important details.

How to Write an Executive Summary for a Project Proposal? 

Every client needs a slightly tweaked proposal copy with all the necessary details and crucial terms included. While the complete project proposal is important to catch the potential client's eye, you'll also need a short and informative executive summary.

Here's how to write an executive summary of the project plan:

You must start by describing the problem briefly and clearly — using active words. While writing the problem, make sure to include why it needs a solution.

The next step is to give your client the proper solution — right away. Here, you'll need to include specific numbers and even outcomes to define possible profits that the client can expect.

It's not enough to write a problem and then give the solution — the real power lies in how well you explain it. Don't go into full detail, but give an overview of the steps that helped you reach the solution.

It might feel good to overlook the risks while presenting the project plan — but the best way to win the proposal is to include potential challenges and offer some ways to avoid them.

Remember, investors are not mind-readers, and neither are your customers. An executive summary of the business plan or project proposal is the sum of the ideas, vision, passion, and other important things you shared in the long document.

Key Takeaways

Many business owners often overlook the importance of an executive summary — but, in reality, it's one such document that can guide the team and help customers learn about the company. 

If you are struggling with how to write an executive summary , start by downloading a free template and then fill in the information according to your business plan. 

If that feels time-consuming, I'd recommend you check the AI note-taking tool like Notta . It can record, transcribe, and then summarize the media file into short, meaningful text.

Chrome Extension

Help Center

vs Otter.ai

vs Fireflies.ai

vs Happy Scribe

vs Sonix.ai

Integrations

Microsoft Teams

Google Meet

Google Drive

Audio to Text Converter

Video to Text Converter

Online Video Converter

Online Audio Converter

Online Vocal Remover

YouTube Video Summarizer

How To Write A Good Business Plan Executive Summary

The executive summary for a business plan is a brief, positive synopsis of the business that goes at the beginning of your business plan. 3 min read updated on February 26, 2023

What Is An Executive Summary?

What is an executive summary for a business plan, and how do you create one? 

An executive summary is a brief, positive synopsis of the business and goes at the beginning of your business plan. An executive summary is normally about one to two pages long, contains two-sentence overviews of each section within the plan, and covers the most important information about the business. 

Ideally, potential  investors will be able to quickly grasp the key elements of your business plan from the executive summary alone. They can then read deeper into areas they are particularly interested in.

Finally, the executive summary should be clear, succinct, and engaging while remaining succinct and professional. A dry executive summary will not entice readers to take an interest in your business.

What Goes into an Executive Summary?

The full content of the executive summary will vary depending on if the business is a startup or an established business. However, there are certain elements common to both.

Every executive summary should include:

• The name and location of the business.
• Your company's value proposition, explaining what sets your company apart from your competitors.
• The marketplace need(s) your company meets, with evidence of that need.
• How your company's products and/or services meet that need.
• A description of your competition and the advantages your company has over them.
• A description of your target market and customer.
• An overview of your company's management team and how each member contributes to its success.
• A description of the company's current developmental stage.
• A financial summary, showing projected sales and profits for the next three years in a way that is both honest and convincing.
• If you are requesting money from a financial institution, state the specific amount you want. For investors, state the percentage stake in the company you're offering for their financial backing.
• A summary of major milestones so far and your goals for the future.

Startups, or pre-revenue companies, should also include:

• A brief overview of your sales and marketing strategy.
• Your implementation plan, describing how you intend to get the business from planning to opening.

For established businesses, be sure to add:

• Your  mission statement , which is a brief description of the purpose and values of the company. This helps to attract the right investors who share your common vision.
• A short history of the company, including the products and/or services it provides and general statistics (number of employees, locations, etc.).
• An overview of how the business has grown, both revenue and market share.
• A financial summary.
• A   business roadmap describing your plans for the company. Investors want to see how you plan to use their money to grow the business.

How To Write A Business Plan Executive Summary

• Write it after - Write the executive summary after you have completed  the entire business plan .
• Create a compelling case - Start the executive summary with a compelling case for why you have a great business idea. No matter how good the rest of the plan looks, no one is going to be interested in a bad idea.
• Keep the tone upbeat, but don't oversell. While you don't need to mention ordinary risks, it's OK to note unusual challenges. However, always be sure to highlight the positives.
• Write in concise language using layman's terms. Anyone without knowledge of your business should be able to understand your executive summary and recognize the opportunity it presents.
• Present a clear plan for your business. Do not be ambiguous. Multiple options convey indecision and uncertainty which are turn-offs for potential investors.
• Conclude with positivity. Your executive summary should end with a few sentences that tell the reader why your business will be successful. Keep the language positive and confident, and avoid unsure words like “maybe” and “possibly.”
• When you've finished, read it back to yourself aloud. Make changes where sentences sound awkward or don't flow well. Then give it to someone who is unfamiliar with your business to read. Note their feedback.

The executive summary is the most important part of your business plan, but it need not be the hardest to write. If you've written the plan, you've already done most of the work.

Do you want a lawyer to review your business plan?

There are plenty of  examples of executive summaries online to guide you further.

If you need help reviewing your business plan with a legal counsel business plan, you can  post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.

Hire the top business lawyers and save up to 60% on legal fees

Content Approved by UpCounsel

• How to Write An Executive Summary for a Business Plan
• Business Plan Executive Summary Example Startup
• Creating a Business Plan
• Business Plan
• Business Plan Format: Everything you Need to Know
• Management Summary Business Plan Sample
• Business Description Outline
• Parts of Business Plan and Definition
• Executive Contract
• How to Write Up a Business Plan for Investors

What is an executive summary in a business plan?

Including an executive summary in your business plan can grab attention and help communicate key information quickly.

What is a business plan?

A business plan is the blueprint for how your business will run. It describes your product or service, identifies your customer and the problem they face, and explains how you’ll succeed in fixing that for them.

Your business plan also helps other people understand what you do and how you do it. Groups like banks and investors will want to see your business plan before deciding to put money into your business, for example. Your accountant should also be able to easily understand what your business idea is and how you’ll make money from it.

It’s a living document that can help you clarify your ideas and maintain a clear direction as you grow. It shouldn’t be just a one-off document – you can return to it at any time and add to it or change it as your business changes.

Looking for help to build your business plan? Download our free business plan templates to get started.

The executive summary is the elevator pitch for the rest of your business plan. Use it to highlight what you do, why you do it and how you’ll succeed.

It’s often the first section that a person will read in your business plan, so this is your opportunity to "sell" your idea and its potential for success.

It should explain enough that a reader could understand the key information about your business without having to read the whole document – this is especially helpful for readers who are pushed for time. However, a compelling executive summary will also grab someone’s attention enough to make them want to keep reading.

While it’s a helpful section for rushed readers, you may feel an executive summary isn’t absolutely necessary just yet. Think about your audience and the complexity of your business plan when weighing up the benefit of having 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.

The executive summary could include both your mission statement and business objectives. However, it should ultimately be a high-level overview of your whole business plan.

What to include in an executive summary

Treat your executive summary as the one and only section someone may read in your business plan. What must they know in order to understand your business?

Pull the key high-level information from other parts of your business plan, including:

• what your business does and why you do it
• your mission statement, if you have one
• your target customers, the problem they face and how you solve it for them
• the product or service you’re selling
• any key information from competitor or market research that helps tell your story
• a schedule to launch, or steps to implement your business plan

If you’re approaching lenders or investors for financing, include key financial information and your plans for growth in your executive summary too.

How to write an executive summary

It’s a good idea to fill in the other sections of your business plan first, before deciding what goes in an executive summary. This way, you have complete information for you to draw from.

Aim to summarize the key sections of your business plan in a few sentences using plain language that’s easy to understand. Include any important data or information that backs up your ideas, and leave out personal opinions.

Beware of copying and pasting information from other parts of your plan; the executive summary should be as specific and concise as possible. An executive summary that’s too general, or padded with unnecessary detail might lose the reader’s interest.

Think about who will read your business plan, and what they’ll be interested in. For example, if you want to connect with lenders or investors, promote the size of the opportunity for your business, and how much money you’ll need to make it a success.

There’s no strict rule about length, but it should remain clear and engaging the whole way through. Keeping to one page is a good general guide to maintain your reader’s attention without overwhelming them.

Ultimately, an executive summary should benefit your business plan by laying out critical information clearly and simply upfront. An engaging, informative summary will help key people understand your plan and your needs, so they can offer guidance and support your success.

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

Xero does not provide accounting, tax, business or legal advice. This guide has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the content provided.

Start using Xero for free

Access Xero features for 30 days, then decide which plan best suits your business.

• Included Safe and secure
• Included Cancel any time
• Included 24/7 online support

Or compare all plans

• Search Search Please fill out this field.
• Building Your Business
• Becoming an Owner
• Business Plans

Executive Summary of the Business Plan

How to Write an Executive Summary That Gets Your Business Plan Read

Susan Ward wrote about small businesses for The Balance for 18 years. She has run an IT consulting firm and designed and presented courses on how to promote small businesses.

CP Cheah / Getty Images

An executive summary of a business plan is an overview. Its purpose is to summarize the key points of a document for its readers, saving them time and preparing them for the upcoming content.

Think of the executive summary as an advance organizer for the reader. Above all else, it must be clear and concise. But it also has to entice the reader to read the rest of the business plan .

This is why the executive summary is often called the most important part of the business plan. If it doesn’t capture the reader's attention, the plan will be set aside unread—a disaster if you've written your business plan as part of an attempt to get money to start your new business . (Getting startup money is not the only reason to write a business plan; there are other just-as-important reasons .)

Because it is an overview of the entire plan, it is common to write the executive summary last (and writing it last can make it much easier).

What Information Goes in an Executive Summary?

The information you need to include varies somewhat depending on whether your business is a startup or an established business.

For a startup business typically one of the main goals of the business plan is to convince banks, angel investors , or venture capitalists to invest in your business by providing startup capital in the form of debt or equity financing .

In order to do so you will have to provide a solid case for your business idea which makes your executive summary all the more important. A typical executive summary for a startup company includes the following sections:

• The business opportunity. Describe the need or the opportunity.
• Taking advantage of the opportunity. Explain how will your business will serve the market.
• The target market . Describe the customer base you will be targeting.
• Business model . Describe your products or services and and what will make them appealing to the target market.
• Marketing and sales strategy . Briefly outline your plans for marketing your products and services.
• The competition. Describe your competition and your strategy for getting market share. What is your competitive advantage, e.g. what will you offer to customers that your competitors cannot?
• Financial analysis. Summarize the financial plan including projections for at least the next three years.
• Owners/Staff. Describe the owners and the key staff members and the expertise they bring to the venture.
• Implementation plan. Outline the schedule for taking your business from the planning stage to opening your doors.

For established businesses the executive summary typically includes information about achievements, growth plans , etc. A typical executive summary outline for an established business includes:

• Mission Statement . Articulates the purpose of your business. In a few sentences describe what your company does and your core values and business philosophy.
• Company Information. Give a brief history of your company —d escribe your products or services, when and where it was formed, who the owners and key employees are, statistics such as the number of employees, business locations, etc.
• Business Highlights. Describe the evolution of the businesshow it has grown, including year-over-year revenue increases, profitability, increases in market share, number of customers, etc.
• Financial Summary. If the purpose of updating the business plan is to seek additional financing for expansion, then give a brief financial summary.
• Future goals. Describe your goals for the business . If you are seeking financing explain how additional funding will be used to expand the business or otherwise increase profits.

How Do I Write an Executive Summary of a Business Plan?

Start by following the list above and writing one to two sentences about each topic (depending on whether your business is a startup or an established business). No more! 

The Easy Way of Writing One

Having trouble getting started? The easiest way of writing the executive summary is to review your business plan and take a summary sentence or two from each of the business plan sections you’ve already written.

If you compare the list above to the sections outlined in the  Business Plan Outline , you’ll see that this could work very well.

Then finish your business plan’s executive summary with a clinching closing sentence or two that answers the reader’s question, “Why is this a winning business?”

For example, an executive summary for a pet-sitting business might conclude: “The loving on-site professional care that Pet Grandma will provide is sure to appeal to both cat and dog owners throughout the West Vancouver area.”

(You may find it useful to read the entire Pet Grandma  executive summary example  before you write your own.)

Tips for Writing the Business Plan’s Executive Summary

• Focus on providing a summary.  The business plan itself will provide the details and whether bank managers or investors, the readers of your plan don’t want to have their time wasted.
• Keep your language strong and positive.  Don’t weaken your executive summary with weak language. Instead of writing, “Dogstar Industries might be in an excellent position to win government contracts,” write “Dogstar Industries will be in an excellent position.”
• Keep it short–no more than two pages long . Resist the temptation to pad your business plan’s executive summary with details (or pleas). The job of the executive summary is to present the facts and entice your reader to read the rest of the business plan, not tell him everything.
• Polish your executive summary.  Read it aloud. Does it flow or does it sound choppy? Is it clear and succinct? Once it sounds good to you, have someone else who knows nothing about your business read it and make suggestions for improvement.
• Tailor it to your audience.  If the purpose of your business plan is to  entice investors , for instance, your executive summary should focus on the opportunity your business provides investors and why the opportunity is special. If the purpose of your business plan is to get a small business loan , focus on highlighting what traditional lenders want to see, such as management's experience in the industry and the fact that you have both collateral and strategies in place to minimize the lender's risk.
• Put yourself in your readers’ place. And read your executive summary again. Does it generate interest or excitement in the reader? If not, why? Also try giving it to a friend or relative to read, who is not engaged in the business. If you've done a good job on the executive summary, an impartial third party should be able to understand it.

Remember, the executive summary will be the first thing your readers read. If it's poorly written, it will also be the last thing they read, as they set the rest of your business plan aside unread.

Office of the Comptroller of the Currency. " Business Plan Guidelines ," Page 2.

Corporate Finance Institute. " Executive Summary ."

United Nations Conference on Trade and Development. " How to Prepare Your Business Plan ," Page 167.

Iowa State University. " Types and Sources of Financing for Start-up Businesses ."

U.S. Small Business Administration. " Write Your Business Plan ."

Clute Institute. " Using Business Plans for Teaching Entrepreneurship ," Page 733.

Filter by Keywords

Project Management

10 executive summary examples and how to write one yourself (with ai).

February 14, 2024

In a world where people have the attention span of a goldfish (or less), we don’t make time to read long, detailed documents unless they are valuable to us. So, how do we convince the reader that the document is valuable? That’s where the executive summary comes in.

What is an Executive Summary?

1. identify the story, 2. bring the data, 3. expand on the benefits, 4. conclude powerfully, best practices for writing executive summary, 1. board report executive summary, 2. research report executive summary example from mckinsey, 3. study report executive summary by the un, 4. project performance report executive summary, 5. payroll report executive summary template, 6. mailchimp content style guide’s tl;dr, 7. clickup release notes, 8. the title and description of a new yorker article, 9. survey report executive summary by harvard, 10. meta executive summary with clickup ai.

An executive summary is a shorter version of a longer corporate document. It summarizes the salient points of a business plan, proposal, or report so executives can get the gist and read further about what matters to them.

In other words, the tl;dr (too long; didn’t read) version.

A typical executive summary includes:

• Problem statement
• Proposed solution
• Expected outcomes

This might vary depending on what you write an executive summary for. Let’s take the example of a project report. You might have to replace the proposed solution and expected outcomes with execution solutions and actual outcomes achieved, respectively. Or, if you’re writing a business plan, research proposal, or market analysis, you might include your methodology, too.

Now that you know the purpose of an executive summary, let’s see how to write one.

How to Write Executive Summaries and Examples

While an executive summary is just a condensed version of a longer report, it isn’t easy to write. It needs to capture the essence of the report, outline the salient points, and tell a story as compelling as the full report. Here are some ways you can achieve that.

Just stating facts and data wouldn’t be a compelling read for anyone. So, identify the story that really impacts people’s lives. While industry terms like workflow optimization or cost control capture people’s attention, they don’t tell the real story behind your efforts. Focus on the latter.

If you’re writing the project executive summary in software development, you might begin with what matters to the reader as follows.

In 2020, the retail major was managing its inventory on spreadsheets. So, whenever a customer asked whether a product was in stock, a staff member had to walk across the 5000 sq. ft. store to check, often with the customer in tow. The new ABC digital inventory management system records stock in and out online in real time. The staff member can check and confirm in a flash. More pertinently, the customers themselves can check at any of the 25 kiosks throughout the store.

While the story is more important, data isn’t useless. Accurate and relevant data helps establish credibility. Your next section might say the following in the ABC digital inventory management system example.

Since the implementation of the ABC inventory management system, the retail major has seen: 85% decrease in time taken to check stock 75% decrease in time taken to find where stock is placed

The data demonstrates that there has been real improvement. However, for the reader to understand its impact, you must explain the benefits. This can be done with real-life scenarios or even quotes. For example,

Adrian, the customer service manager at the Central Park store, says, “Now, from anywhere—a kiosk, the checkout counter, or my mobile phone—I can quickly check stock and confirm we have the products the customer needs. I see that customers are delighted at getting their answers instantly.”

You can also use data to do this. For example, you can explain how the decreased time taken to check stock has increased staff productivity, customer satisfaction, or company revenue. Or you can include your suggestions here. Based on your observations, explain the process improvement methodologies you recommend.

This is the time to complete the story. Here, talk about how your project has delivered the changes in the present and sets up for an even more prosperous future. This could be something like:

The ABC inventory management system marks the first step in the retail major’s digital transformation journey. By Q2 next year, we will link the store solution to the e-commerce inventory platform to give 360-degree visibility into the stock situation. This would also enable a new sales channel in the form of Buy Online, Pick Up in Store (BOPIS), enabling same-day fulfillment.

While you write your executive summary, here are some best practices to remember.

Keep it short and simple : The length might depend on the report you’re summarizing, but it’s best to keep it under one page for quick reading. Also, avoid cliches and jargon; make it easy to read. A quick business plan under one page is the best first impression you can make.

Focus on the target audience : Not all executive summaries are read by business executives. Often, you might want to address your summary to peers, vendors, partners, or even teens. Know your target audience and customize your executive summary accordingly.

Use the right tool : You can, of course, use Notepad or Word doc to write your executive summaries. But give it a boost with modern document software like ClickUp Docs .

• Use rich formatting features without jumping through hoops
• Style the critical information with color-coded banners, buttons, and more
• Collaborate in real time with comments, action items, and trackable tasks
• Securely share with anyone with appropriate access controls

Pick a suitable template : If it’s your first time writing an executive summary, we’ve got your back. Fire up one of ClickUp’s executive summary templates or content writing templates , and kickstart your work.

Get the AI boost : If you’ve thoughtfully created your report, you can write your executive summary much quicker with one of the many AI writing tools . For instance, ClickUp AI offers a single-click summarize option right on ClickUp Docs.

What’s more? ClickUp AI supports you in brainstorming new ideas, writing the first drafts of your executive summaries, and proofreading them for good measure.

10 Executive Summary Examples

Now that we have discussed the theory of executive summary writing, let’s look at some examples to see what it looks like in practice. Here are ten to learn from or emulate.

Periodically, the board would expect to see a report on the organization’s performance. Various departments typically write their reports, which are consolidated into a board report. An effective executive summary of this would include the following.

• Revenue and expenditure
• Key areas of focus
• Critical success factors
• Financial information
• Challenges and roadblocks

This ClickUp Board Report Summary Template brings all these aspects together to get you started on your executive summary right away. You can customize this free executive summary template to suit your needs and fill in the data as appropriate.

McKinsey, one of the world’s leading consulting firms, publishes dozens of research reports annually. For every one of them, they write executive summaries, often called ‘in brief.’

In this report titled, ‘ Performance through people: Transforming human capital into competitive advantage ,’ the executive summary takes a two-pronged approach. It presents key insights in text on one page and data in infographics on the next.

Insights in text : The report begins by directly addressing the primary purpose of the research. Below are the first few sentences.

How does developing talent affect financial returns for firms? This research finds that companies with a dual focus on developing human capital and managing it well have a performance edge.

This section summarizes the key insights from the research. The headlines of each section are presented in bold, making it easy for the reader to skim.

Data in visuals : The text section is followed by an infographic of the key findings from the data. Within one page, it presents all the graphs relevant to the reader engagingly.

Within two pages, McKinsey gives the reader a bird’s eye view of what to expect, customized for the target market, from the 40-page document.

You can read the executive summary of this report on McKinsey’s website .

The Adaptation Gap Report 2023 by the United Nations Environment Programme is a 112-page report with a rather detailed executive summary, stretching eight pages. The depth of information and seriousness of the topics covered demand an extended executive summary.

Yet, the writers make every effort to make it engaging with a combination of typography, design, and graphs. It begins with the following.

Despite the clear signs of accelerating climate risks and impacts worldwide, the adaptation finance gap is widening and now stands at between US$194 billion and US$366 billion per year. Adaptation finance needs are 10–18 times as great as current international public adaptation finance flows – at least 50 percent higher than previously estimated.

In the following pages, it presents graphs to demonstrate the underpinnings of these key findings.

Every project manager creates performance reports at the end of each week, month, or quarter. This typically includes the tasks tracking , burn up, burn down, hours spent, etc.

While this can be written down in a list, presenting this information as a slide with visual elements is far more effective.

One way to achieve this is to use ClickUp’s project summary templates , which offer custom-designed templates for various project management purposes.

The other way is to use the dynamic reports on the ClickUp Dashboard , which brings together all the key metrics and keeps them updated in real time for you to share with anyone you’d like to.

Human resources or people management teams create payroll reports, typically in spreadsheets, for every payment period—bi-weekly or monthly. This data is also helpful for building financial projections. For the senior finance leaders, they often create an executive summary of critical information, such as:

• Total salaries paid
• Deductions across categories
• Year-to-date salary expenses
• Paid time off credits
• Net pay summary

ClickUp’s Payroll Summary Report Template can save time by automatically gathering all relevant data from the platform. When data is unavailable on ClickUp, you can highlight any text to @mention team members who can fill in the correct information.

Once complete, you can update the Doc’s settings for access control and share it with the management team instantly.

A company description or how it projects itself is often important to stand out in a crowded market. Mailchimp stood out with its style guide. The guide is comprehensive and widely used by smaller content teams that don’t yet have their own.

Mailchimp has made it public and available under a Creative Commons Attribution-NonCommercial 4.0 International license for anyone to adapt to their needs.

While every section in this style guide is engaging and valuable, for the purposes of this article, we want to draw your attention to the tl;dr section , which acts as a quasi-executive summary.

It is a bulleted list of seven sub-sections, highlighting the foundations of Mailchimp’s writing style.

The striking thing about this tl;dr version is its simplicity. Even without any visual elements, infographics, or charts, this page gives readers a real and actionable summary of the entire style guide.

When we speak of executive summary, we almost always think of a smaller version of an entire document. It need not be so.

For a software engineering team, the release notes are a kind of executive summary of all the changes/upgrades made in the latest version.

Take the example of ClickUp’s release notes 3.04 . Each release gets:

• An organized yet concise summary of all the changes that have been made
• “ClickTips” to help readers make the best use of new features
• Visuals and app images to show how the changes look
• Links to help pages of each of those features so the reader can learn more
• A list of bugs fixed
• And any other resources, such as on-demand webinars or training

These release notes inform users and developers of the latest upgrades to the ClickUp platform without overwhelming them with the details.

The New Yorker Magazine wrote a 10,000-word profile of Geoffrey Hinton , a computer scientist and cognitive psychologist, for their November 20, 2023 issue, titled ‘Metamorphosis.’ Even in podcast form, it’s over 60 minutes long.

When it was published online, they needed a title and description that summarized the article in a way that attracted a lay reader’s attention to click and read. The headline captures the primary conflict explored in the article. The description introduces the protagonist.

While this is typically not what we’d categorize as an executive summary, it is a fantastic example of capturing the essence of a long article in a few powerful words.

This executive summary serves as an inspiration for writers, irrespective of what you’re writing about, to summarize their main points not just briefly but also powerfully and attractively.

In the spring of 2019, Harvard University conducted its first-ever survey about campus culture. The executive summary of the report on these survey responses makes for great reading. It is also a great example of how to honestly and authentically present key findings, even unpleasant ones.

The executive summary is honest on multiple fronts. It admits that:

• 2019 was the first time in history that Harvard surveyed campus culture
• Three in ten of the Harvard community don’t feel like they belong
• 34% of students disagreed with the belief that Harvard will take appropriate action against incidents of harassment and discrimination
• Those from historically underrepresented and disadvantaged groups reported less positive views

At the end of this, the executive summary outlines the specific steps Harvard will take to address these responses from the community.

Project managers can use this as inspiration for handling executive summaries of projects that have gone awry. It helps leaders take responsibility for what has occurred and build systems to prevent future mistakes.

Not all executive summaries have to be written manually by you. A free executive summary template is also something to explore. Plenty of tools offer it. Dozens of AI tools for automation can summarize text in seconds. Here’s what ClickUp AI returned when we inserted the article above and asked for a summary.

The article discusses the purpose and importance of an executive summary, which provides a brief overview of detailed documents, making them more palatable for readers with limited time. Executive summaries typically include problem statements, proposed solutions, expected outcomes, and a conclusion. To create a compelling summary, it’s crucial to identify the main story, incorporate relevant data, expand on benefits, and conclude powerfully. The use of modern document software like ClickUp Docs and AI tools like ClickUp AI can enhance the quality and efficiency of writing executive summaries. The article also provides practical examples of executive summaries across different fields, showcasing their versatility and applicability. This provides a great starting point for those who fear the blank page. You can now edit this to add details, add images, or insert a quote.

With ClickUp AI, you can choose the tone (from professional, straightforward, inspirational, optimistic, casual, confident, friendly, or humorous) and creativity (low, medium, and high) to customize the summary to your needs.

That’s not all! For project managers and business leaders, ClickUp AI offers a wide range of writing and summarizing tools for scope documents, project briefs, meeting agendas, statements of work, survey questions, and more.

You can tag people to invite input or feedback. You can also convert comments into tasks and manage them effortlessly, all in one place.

Never used AI for writing before? No worries there, too. Here are AI prompt templates that will get you started instantly.

With a custom-built AI assistant tailored to your role, you can work faster, write better, spark creativity, and be significantly more productive.

Questions? Comments? Visit our Help Center for support.

Receive the latest WriteClick Newsletter updates.

Thanks for subscribing to our blog!

Please enter a valid email

• Free training & 24-hour support
• Serious about security & privacy
• 99.99% uptime the last 12 months

Business Plan Executive Summary with Example

Written by Dave Lavinsky

Executive Summary of a Business Plan

The Executive Summary is the most important part of your business plan. This is because it’s the first section in your plan, and if it doesn’t excite readers, they won’t continue reviewing it. Importantly, there is a way to ensure your executive summary is compelling and includes the key information readers expect. In this article, you’ll learn how to craft the perfect executive summary for your business plan.

Download our Ultimate Business Plan Template here >

Table of Contents:

What is an executive summary, why do i need an executive summary, how long should an executive summary be for a business plan, how to write an executive summary for a business plan + template, sample executive summary, other helpful resources for writing your business plan.

An executive summary of a business plan gives readers an overview of your business plan and highlights its key points.

The executive summary should start with a brief overview of your business concept. Then it should briefly summarize each section of your business plan: your industry analysis, customer analysis, competitive analysis, marketing plan, operations plan, management team, financial plan and funding needs.

If presented for funding, the executive summary provides the lender or investor a quick snapshot which helps them determine their interest level and if they should continue reading the rest of the business plan.

An effective executive summary is a quick version of your complete business plan. You need to keep it simple and succinct in order to grab the reader’s attention and convince them it’s in their best interest to keep reading.

As mentioned above, your business plan is a detailed document that requires time to read. Capturing the reader’s attention with a concise format that provides an interesting overview of your plan saves them time and indicates which parts of the business plan may be most important to read in detail. This increases the odds that your business plan will be read and your business idea understood. This is why you need a well-written executive summary.

When structuring your executive summary, the first thing to keep in mind is that it should be short and comprehensive. The length of your executive summary should never exceed 3 pages; the ideal length is one or two pages.

Finish Your Business Plan Today!

To write a compelling executive summary, follow the steps below and use our executive summary template as a guide:

State the Problem and/or Business Opportunity

Briefly describe your business idea, provide key information about your company history, conduct market research about your industry, identify the target market or ideal customer, explain your competitive advantage, establish relevant milestones for your business to achieve, develop a financial plan, describe the qualifications of your management team.

To help you get started, you can download our executive summary example business plan pdf here.

Whether you’re a large or small business, your executive summary is the first thing someone reads that forms an opinion of your business. Whether they decide to read your detailed business plan or push it aside depends on how good your executive summary is. We hope your executive summary guide helps you craft an effective and impactful executive summary. That way, readers will be more likely to read your full plan, request an in-person meeting, and give you funding to pursue your business plans.

Looking to get started on your business plan’s executive summary? Take a look at the business plan executive summary example below!

Finish Your Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Shoutmouth.com Executive Summary

Business Overview Launched late last year, Shoutmouth.com is the most comprehensive music news website on the Internet.

Music is one of the most searched and accessed interests on the Internet. Top music artists like Taylor Swift receive over 5 million searches each month. In addition, over 500 music artists each receive over 25,000 searches a month.

However, music fans are largely unsatisfied when it comes to the news and information they seek on the artists they love. This is because most music websites (e.g., RollingStone.com, MTV.com, Billboard.com, etc.) cover only the top eight to ten music stories each day – the stories with mass appeal. This type of generic coverage does not satisfy the needs of serious music fans. Music fans generally listen to many different artists and genres of music. By publishing over 100 music stories each day, Shoutmouth enables these fans to read news on all their favorite artists.

In addition to publishing comprehensive music news on over 1200 music artists, Shoutmouth is a social network that allows fans to meet and communicate with other fans about music, and allows them to:

• Create personal profiles
• Interact with other members
• Provide comments on news stories and music videos
• Submit news stories and videos
• Recommend new music artists to add to the community
• Receive customized news and email alerts on their favorite artists

Success Factors

Shoutmouth is uniquely qualified to succeed due to the following reasons:

• Entrepreneurial track record : Shoutmouth’s CEO and team have helped launch numerous successful ventures.
• Monetization track record : Over the past two years, Shoutmouth’s founders have run one of the most successful online affiliate marketing programs, having sold products to over 500,000 music customers online.
• Key milestones completed : Shoutmouth’s founders have invested $500,000 to-date to staff the company (we currently have an 11-person full-time team), build the core technology, and launch the site. We have succeeded in gaining initial customer traction with 50,000 unique visitors in March, 100,000 unique visitors in April, and 200,000 unique visitors in May.

Unique Investment Metrics

The Shoutmouth investment opportunity is very exciting due to the metrics of the business.

To begin, over the past five years, over twenty social networks have been acquired. The value in these networks is their relationships with large numbers of customers, which allow acquirers to effectively sell to this target audience.

The sales price of these social networks has ranged from $25 to $137 per member. Shoutmouth has the ability to enroll members at less than $1 each, thus providing an extraordinary return on marketing expenditures. In fact, during a recent test, we were able to sign-up 2,000 members to artist-specific Shoutmouth newsletters at a cost of only 43 cents per member.

While we are building Shoutmouth to last, potential acquirers include many types of companies that seek relationships with music fans such as music media/publishing (e.g., MTV, Rolling Stone), ticketing (e.g., Ticketmaster, LiveNation) and digital music sales firms (e.g., iTunes).

Financial Strategy, Needs and Exit Strategy

While Shoutmouth’s technological, marketing and operational infrastructure has been developed, we currently require $3 million to execute on our marketing and technology plan over the next 24 months until we hit profitability.

Shoutmouth will primarily generate revenues from selling advertising space. As technologies evolve that allow us to seamlessly integrate music sampling and purchasing on our site, sales of downloadable music are also expected to become a significant revenue source. To a lesser extent, we may sell other music-related items such as ringtones, concert tickets, and apparel.

Topline projections over the next three years are as follows:

Example of Executive Summary for a Business Plan

Starting a business can be intimidating due to the complex web of decisions, uncertainties, and risks that entrepreneurs must navigate through, while ensuring the path to success for their businesses. Business plans serve as a business’s compass to direct a business and drive its growth to achieve its goals and objectives. 

Consequently, a concise but striking executive summary is an essential part and arguably, one of the most critical components of a business plan.

However, people spend only an approximate 48 minutes a day reading about business, according to a study by The Economist Intelligence Unit and Peppercomm. In a week, about 69% of young executives and 43% of veteran professionals read for business for less than four hours. 

Similarly, an article from Time Magazine mentioned that 55% of people only actively read content for less than 15 seconds. This implies that a robust executive summary of a business plan should capture a reader’s interest and show that a business plan is worthy of a reader’s attention in a very narrow timeframe.

As such, it is necessary to know how to craft an impactful executive summary that will communicate the vision of a business. Let’s explore the how-tos of writing an executive summary of business plan, its significance, and some business plan executive summary examples.

What is an Executive Summary?

An executive summary is the first key component in a document such as a business plan, proposal, or report that serves as a concise snapshot that effectively captures reader interest. It also encapsulates vital details that discuss the identified issue or opportunity, market findings, overarching goals, and strategic plans .

A variety of professional documents incorporate executive summaries. Here are some examples:

• Business plans
• Financial reports
• Marketing proposals
• Professional resumes

What is an Executive Summary in a Business Plan?

In a business plan, the executive summary should vouch for a business through a writing that is positive and assertive. The focus should be on factual and practical information that readers want to know, instead of subjective or emotional aspects such as hard work and passion. 

Considering the interest of the target audience in the executive summary will answer their underlying questions about a business and avoid creating new ones that will hold them back from reading a business plan further.

Have Questions? Looking To Get Started?

• Your Name *
• Email Address *
• Phone Number

Executive Summary vs. Business Overview

In general, both an executive summary and business overview play the role of providing a project summary in business plans to give readers a short outline. Both provide essential information but serve distinct purposes. 

The executive summary is a high-level synopsis crafted to capture the reader’s attention, providing a quick understanding of a business plan’s main points. In contrast, a business overview focuses on specifically highlighting a company’s background, mission, vision, and market positioning. This offers a brief description of the business and a comprehensive perspective of its brand and place within an industry.

What Makes the Executive Summary Significant?

The executive summary is that one business plan section that everyone will read. It saves the readers’ time, provides clarity, and assists with document navigation. The benefits of a solid executive summary make it an important portion of a business plan.

Readers look into the executive summary to acquire critical information about a business in a short period to quickly formulate an appropriate decision or course of action thereafter. The contents of the executive summary are important as these outline what the audience will expect to learn while reading a business plan. The executive summary further helps readers navigate the business plan, indicating the main topics discussed in the plan. This makes a business plan more accessible and usable.

What are the Elements of an Effective Executive Summary?

The following will detail the important areas to be included in the executive summary of the business plan:

Business Opportunity: The business opportunity discusses the problem in the existing market that the business aims to address. This section highlights the market need and a business’s plans to meet said demand. The business opportunity will outline the solutions to the market problem and how these initiatives will create a change in the current business scene. 

Target Market: This pertains to the demographic a business intends to reach as its customer base. The target market section in the executive summary will include market research and highlight the consumer group who has potential interest in a business’s product or service. This studies traits such as age, occupation, gender, education level, and socioeconomic status.

Business Model: The business model is the part of the executive summary that zooms into the business concept. This includes the specific products or services a business intends to offer and specific characteristics that allow them to compete in the market.

Marketing Strategy: The marketing strategy presents the methods a business will implement to mold its brand and build brand recognition for its products or services. Marketing techniques such as digital marketing efforts, like Google Ads , and traditional media are discussed in this part.

Competition: This part provides a summary on the analysis of a business’s competitors, industry trends, and customer demand. This highlights the results of a business’s market research and showcases its understanding of the industry. This will allow a business to stand out on a local or international level.

Financial Analysis: A business plan’s executive summary should include how a business intends to control its finances, while generating revenue in the long-term. This section talks about how resources and funds will be utilized to propel the business towards growth and success and how the potential investors will benefit from these plans.

Company Overview: The company overview helps readers understand the growth of a business, its milestones, and how it has evolved throughout the years. This part is a brief description of the business and also includes an introduction of its key members, their qualifications and achievements, and how these people influenced and assisted in the development of the business.

Implementation Plan: The implementation plan is one of the vital parts of an executive summary. This component of the executive summary sketches both a structure and a timeline, starting from a business idea and moving towards launching an actual business.

5 Helpful Executive Summary Writing Tips

 1. Engage Your Audience through Your Story

      As an entrepreneur that steers a business forward, the executive summary should reflect the leadership you want to showcase. Set the tone of the business plan through the executive summary and make your readers understand what your business is about. Tell your story and how that pushed you to start the business that you aspire to build. Using an active voice in writing will demonstrate your proactive role in the business. Ambiguity does not have a place in your business and in achieving your business goals.

2. Highlight Key Elements

Working as a business plan overview, the executive summary focuses on the most critical aspects of your business plan, such as the problem, solution, market research , competitor analysis, and financial projections . While the business plan body elaborates on the details, specific findings will be highlighted in the executive summary.

3. Use a Compelling Tone and Tailor it to Your Audience

      Staying true and accessible is essential to writing an executive summary, similar to the importance of keeping a professional and concise tone in your writing. Discussing information objectively and substantiating it with evidence, projects authority and credibility, while also showing an approachable and engaging side. Avoid voicing out personal opinions and using excessive claims. The key is to strive for clarity and simplicity to resonate with the interest and concerns of your readers.   

4. Steer Clear from Clichés

      Avoiding cliché language is a vital point on how to make an executive summary effective. A good tip to stay true to this is to stay away from using general descriptions in your executive summary. Generalities and clichés tend to create unrealistic expectations that your business may fall short of meeting. Understand and detail the uniqueness of your business by being specific. Do not sell your business short, but stay truthful.

5. Complete it After Doing the Entire Business Plan

      Building the executive summary after completing the whole business plan allows you to have a better understanding of your business and to communicate the vital aspects in the summary. Writing it at the beginning risks the miscommunication of your business’s core concepts to its intended readers. This may further lead to inconsistent and irrelevant details and reduce the precision of the executive summary.

Final Thoughts

Empathizing with business plan readers and grasping the most valuable information to them makes a comprehensive and persuasive executive summary. Overall, keep in mind the following questions before starting an executive summary:

• What knowledge and key takeaways should the business plan reader have?
• What outcomes should the readers achieve after reading the executive summary in business plan?
• Do these expected outcomes align with the business’s mission and long-term goals?

Business Plan Executive Summary Template and Examples

Now, we have established the key elements of and some writing tips on creating an executive summary. If you don’t have a business plan yet, BSBCON has a free business plan template that can help you start with building your own. Looking at an example of executive summary for business plans will allow you to be more familiar with its contents. Below are two examples of an executive summary in a business plan:

Executive Summary Example 1

“ProSecure Squad Corporation” operating as “ProSecure Squad” (The Company) was first incorporated in September of 2016 in Massachusetts, USA and subsequently incorporated in the State of Massachusetts on June 10th 2020. Over the past years ProSecure Squad has developed and patented revolutionary Cyber- security products.  

With digital transformation of industries being hastened by factors such as E-Commerce, Internet of Things (IoT), Connected Machines, Self-Driving vehicles, Cloud Computing, Artificial Intelligence (AI), there has been an enormous increase in the amount of electronic data.

Despite strong cyber-security defenses implemented, cyber-criminals have been getting past these defenses at an increasingly alarming rate and the cost for an organization to retain end-to-end cybersecurity professionals has become astronomical.  This has made the Cybersecurity Market one of the fastest growing industries.  

With patented products, an accomplished team of cybersecurity experts, and a clear strategy for product and service deployment, ProSecure Squad is ready to lead the next wave of cybersecurity.  The company is focused on making its world class data security solutions accessible and inclusive; therefore, targeting wide-scale adoption from medium to large businesses, and government organizations across the globe.

What makes the company’s offering so unique is our focus on simplifying data resiliency; making it easy to protect your data from being spied on, stolen or held for ransom even if a hacker or malware gets past the current cyber-defenses. 

With years of research and development, ProSecure Squad has refined our products and has garnered the interests of large corporations in the security and other Industries. With our offering being tailored to meet the current data security demands, ProSecure Squad is well positioned to become leaders in data security. 

ProSecure Squad Corporation is seeking a 15 Million USD capital investment in return for a 15% equity and voting stake in the company.  These funds will be allocated to taking the company’s products and services to market through direct sales, marketing, customer onboarding and customer support.  With this investment the company will execute on established opportunities, further develop its capabilities, and forge a notable position in one of the fastest growing industries.

Executive Summary Example 2

“Silver Studios, Inc.” (herein also referred to as “Silver”, “Silver Studios” and “the company”) was incorporated on January 9, 2021, in the City of Chicago by Founder and CEO, Jamie Malcolm. With plans to expand the company’s operational reach, Silver Studios also incorporated in New York, U.S.A. on April 30, 2022.

Silver Studios has rapidly emerged as a promising record label and music production company following the successful signing of eight talented artists who have achieved impressive results to date. These include charting on the Top Chicago Downloads, Top U.S. Rotation AC Tracks, U.S. Billboard Country Indicator Chart, and the American Billboard Chart. Additionally, the artists signed to the Silver Studios label have amassed a substantial following with over 58,000 collective monthly listeners and a significant number of streams on Spotify alone.

Today, Silver sits at a focal point where there is an abundance of opportunity to discover emerging artists, sign new talent and support existing artists.  In order to complete the development of the studio, acquire a variety of recording equipment, and hire additional staff, the company is seeking a strategic partnership and capital investment of $8.5M. With this partnership secured, Silver Studios will be positioned to welcome an array of upcoming artists and expedite growth within the music production and distribution industry.

Under the leadership of Mrs. Malcolm, Silver Studios has achieved significant success and earned a reputation as a champion for emerging artists. The company’s unwavering commitment to being an artist-first record label, along with a unique approach to equitable contracts and creative expression, has resulted in the discovery and development of exceptional talent. With increased strategic and financial resources, Silver Studios will continue to push boundaries and pave the way for the next generation of emerging artists.

This business plan acts as a strategic roadmap for Silver Studios in terms of operations, marketing, human resources and finance.

Understand Your Target Audience with BSBCON

Resonate with your target market and unlock the power of persuasion in your business plan executive summary by choosing BSBCON today. Our expertise ensures not just good, but exceptional business plans that will help your brand stand out in a competitive market. Reach out to BSBCON and elevate your vision and achieve business excellence.

How can we help you?

Get in touch with us or visit our office

Sign up for our newsletter for product updates, new blog posts, and the chance to be featured in our Small Business Spotlight!

Why your business plan's executive summary is so important (+ how to write one)

If you plan to launch your own small business , then you'll need to write an executive summary as part of your full business plan. In this article, we'll answer all your pressing questions, including: What the heck is an executive summary, anyway? What’s the purpose of an executive summary? And how do I actually create a well-written executive summary?

Executive summaries are arguably one of the most critical sections of a business plan —and they're also one of the trickiest to write. The executive summary is the first part of your complete business plan that someone will read, so it needs to be compelling in order to convince someone to read the whole thing.

But here’s the catch: 55% of people spend less than 15 seconds actively reading content, based on data published in Time Magazine . This means the limited window of time you have to convince someone your business plan is worth their attention depends on a strong executive summary. No pressure or anything.

For that reason, it’s important to know how to draft a concise executive summary that makes an impact and communicates the goals of your small business. But have no fear, just read on to learn how!

What is an executive summary?

An executive summary is essentially an outline of your business plan. If your full business plan is a roadmap, your executive summary is your roadmap's roadmap. It gives your readers a heads up about what you'll talk about in the rest of your business plan. For all intents and purposes, your business's executive summary is your elevator pitch.

The purpose of an executive summary

If there's one section of your business plan everyone is going to read, it's the executive summary. Your business plan's executive summary exists to give readers an overview of the entire document. It should outline what they can expect to learn and motivate them to keep reading on.

“Investors will read the executive summary to decide if they will even bother reading the rest of the business plan. It’s rare for an investor or lender to read an entire business plan, at least in the initial stages of analysis and consideration for funding,” says Eric Markowitz , Inc.com Staff Writer.

Keep your goals and purpose in mind when writing your executive summary.

If your business is a startup, the purpose of your business plan (and executive summary) will likely be to get banks or investors to provide you with financing. So, when writing your executive summary, highlight the financial requirements of your business and why your business is worthy of funding.

If you're a more established business owner, then your executive summary will talk more about your achievements, evolution, and goals for the future.

How to write an executive summary for a business plan

Your business's executive summary should be as short as possible, ideally only one or two pages long.

Remember that you're vouching for yourself and your business in your executive summary, so make sure your language is confident and positive!

Bad example : We might not be the best or the most established protein powder brand, but we probably have the most passion and love out of all our competitors.

Good example: With some vegan protein powder products on the market currently, we expect mild competition and are confident we will be able to build a strong market position.

It's best practice to avoid talking about more fluffy, subjective points and cliches (like passion, hard work, etc.) so you can focus more on the practical information and facts your readers want to know about (like why they should actually invest or partner with your business). You also want to seem confident in yourself and your business, so avoid words like "might," "maybe," or "could" and opt for more definitive words, like "will"!

Remember that your executive summary should fill in the blanks for your readers. Keep your target audience in mind and try to answer their questions, rather than create new ones, or they may get confused and stop reading. Give them a reason not to go back to checking their current value of Bitcoin. 

"Put yourself in the business plan reader's shoes and think about what you would like to know in the report," Marius Thauland, business strategist at Leiekontor, told Business News Daily . "Get their attention by making it simple and brief yet still professional. It should also attract them to read the entire document to understand even the minute details."

There's no specific way to order the different sections of your executive summary, but you'll want to put the most important information or your strongest points first . The first sentence and paragraph of your executive summary is especially important, since these are what will reel your readers in.

We'll give you an idea of how to do this below.

What to include in the executive summary of your business plan

Despite being the first page of your business plan, it’s a good idea to write your executive summary section last. This trick allows you to get a clear picture of what specific material from the full business plan you need to introduce in the executive summary. So if you haven't written the rest of your business plan yet, stop, maybe check out our articles on writing a business plan (wink wink nudge nudge), and come back here once you're done.

Since the goal of a business plan is to persuade the reader to invest in your business, your executive summary needs to demonstrate why this investment would be a smart financial decision. The kicker is: you need to do all of this in 1-2 pages.

To get started, The Balance Small Business suggests including the following eight sections. Choose the topics most relevant to your business and write one or two sentences about each of them. And remember to order them from most important to least important! ‍

1. Business opportunity

What demand or need is there for your business and how will you meet this demand? Talk about a problem or a gap in the market, and why your business alone has all the answers. ‍

2. Target market

What demographic do you intend to reach as your customer base? Who's going to be buying your product? ‍

3. Business model

Use this part to give more juicy details about your business idea. What products or services will your business offer, and what makes them desirable? ‍

4. Marketing/Sales strategy

What will your methods be to create brand recognition for these products or services? You might want to consider marketing techniques like social media, paid media, or email marketing. ‍

‍ 5. Competition

Give your readers the low-down of your industry. What businesses will you compete with for market share, and what does your business offer that your competitors do not? How big and competitive is your industry? How will you stand out against other small businesses? Are there any industry trends you should bring up? ‍

6. Financial analysis

Investors and banks will be especially interested in this part. What is your plan to manage your business finances, and what is your projected revenue for the first three years of your business? You should go into detail about how you will distribute your funding and spell out what your investors will get out of it. ‍

7. Owners/Staff

In this section, you can give a brief overview of your business's history. Who are the owners and lead staff members of your business and what important skills or credentials do they bring? ‍

8. Implementation plan

What is your framework and timeline to move from a concept to launching an actual business?

Effective executive summary examples

Sitting down to start writing an executive summary and putting all the pieces together can be challenging .  

To think about it differently, you might consider grouping the above details into a few specific categories: ‍

Mission statement

What are the core values and central purpose of your business? ‍

Company information

What products or services do you offer, how long has your business been in operation, who are the owners and lead staff members, and how many business locations do you manage? ‍

Financial summary

What is the current and projected state of your finances and do you need an investor to help you expand? ‍

Future goals

What objectives or projects will this financial investment be used for?

Keep in mind that, as you write your own executive summary, you should consider the industry and market that you are entering, the customers you’ll be interacting with, and the things your business will need to succeed (financial backing, upfront costs, additional workforce, etc). Here’s an example of a good executive summary template to guide you as you embark on writing your own executive summary.

Executive summary/business plan example: Vegan Protein Blitz

Company: Vegan Protein Blitz: Animal-free protein powder ‍

Our Mission

Vegan Protein Blitz: Animal-Free Protein Powder offers 25 grams of protein per serving without any use of animal protein—similar to, and in many cases, more than, the average amount of protein in similar products. We intend to appeal to those within the fitness community who are looking for a great-tasting protein powder without compromising on the amount of protein per serving. With some vegan protein powder products on the market currently, we expect mild competition and are confident we will be able to build a strong market position.

The Company and Management

Vegan Protein Blitz: Animal-Free Protein Powder was founded in 2018 by Sarah Bailey, a certified personal trainer and former food scientist, who couldn’t find a vegan protein powder that tasted good and provided the amount she needed to fuel her fitness routine. Her kitchen is based in San Diego, California, where she employs two full-time employees and three part-time employees.

Along with Sarah Bailey, Vegan Protein Blitz: Animal-Free Protein Powder has a board of advisors. The advisors are:

• Laura Henry, partner at Food Inc.
• Kristin Smith, CEO of Just Nuts Vegan Health Bars

Our Product

We offer animal-free protein powder that is made with all-natural sugar sources and no preservatives. Our customers are health-conscious and serious about fueling their bodies with animal-free whole foods. We plan to grow quickly, with an initial goal of building a full-time marketing team of fitness advocates and professionals who understand the industry and our customers’ needs.

Our Competitive Advantages

While there are other vegan protein powders on the national market, there are none that are made with all-natural sugar and with a comparable amount of protein as that of an animal-based powder. With the expertise of our founder Sarah Bailey, we also stand out as a company that truly understands the audience. Please see our market research (Section 3) for more information on why consumers are demanding this expertise.

Financial Considerations

Our sales projections for the first year are $600,000 with a 10% growth rate over the next two years. By year three, we project 55% gross margins and will have ten full-time employees. The salary for each employee will be $60,000 USD.

Startup Financing Requirements

We are seeking to raise $250,000 in startup funds to finance the first year. The owner has invested $40,000 to meet working capital requirements, and will use a loan of $80,000 to supplement the rest.

More executive summary templates

Need more business plan examples, or ready to create your own executive summary with a template? Here are a few we found around the web:

• US Small Business Association
• Template.net

Final tips for writing an executive summary

Earning investor interest in your business is critical to getting access to the things your business will need to succeed, and a solid executive summary can help you do that. Writing your full business plan first can help you get clarity on the strongest key points of your business proposal, which you can use to build out your executive summary.

Most importantly, keep this section of your business plan straightforward and concise, making it easy for the reader to understand what you’re doing and why it matters.

Brush up on your writing skills

You're an entrepreneur, and you probably didn't start your business to write business plans . Free online editing tools and resources like Hemingway and Grammarly can help you punch up and polish your writing. Just copy and paste your executive summary into the software, and it will let you know where your writing needs to be more clear.

Get to the point

Remember what we said about keeping it short? We mean it. Even if there's a really clever sentence that you're super proud of, it's gotta go if it doesn't contribute to your summary. You don't want to give too much detail (that's what the rest of your business plan is for!) or repeat yourself.

Always proofread your work a couple of times before calling it a day! Reading your executive summary out loud can help you identify awkward phrasing and catch any typos you might have missed. Another idea is to copy and paste it into a text-to-speech program to hear what it sounds like out loud. It also helps to print out your executive summary and edit the physical document, which helps you see it from a fresh perspective. 

Get feedback

If you have a kind friend, family member, or fellow business owner, you should ask them to take a look at your executive summary/business plan and give their constructive criticism. If they understand your goals and plan and seem excited about your idea, that's a good sign! If they give your business plan back to you with a bunch of red marks and a confused look on their faces, that's probably a sign for you to make sure your executive summary flows more logically.

*While subscribed to Wave’s Pro Plan, get 2.9% + $0 (Visa, Mastercard, Discover) and 3.4% + $0 (Amex) per transaction for unlimited transactions during the offer period. After the offer ends: over 10 transactions per month at 2.9% + $0.60 (Visa, Mastercard, Discover) and 3.4% + $0.60 (Amex) per transaction. Discover processing is only available to US customers. See full terms and conditions.

See Terms of Service for more information.

Related Posts

Once your business is off the ground, Wave will be ready and waiting for you. Send free invoices, get paid, track expenses, pay your team, and balance your books with our beginner-friendly financial management software.

The information and tips shared on this blog are meant to be used as learning and personal development tools as you launch, run and grow your business. While a good place to start, these articles should not take the place of personalized advice from professionals. As our lawyers would say: “All content on Wave’s blog is intended for informational purposes only. It should not be considered legal or financial advice.” Additionally, Wave is the legal copyright holder of all materials on the blog, and others cannot re-use or publish it without our written consent.

8 Business Plan Templates You Can Get for Free

8 min. read

Updated April 10, 2024

A business plan template can be an excellent tool to simplify the creation of your business plan. 

The pre-set structure helps you organize ideas, covers all critical business information, and saves you time and effort on formatting.

The only issue? There are SO many free business plan templates out there. 

So, which ones are actually worth using? 

To help remove the guesswork, I’ve rounded up some of the best business plan templates you can access right now. 

These are listed in no particular order, and each has its benefits and drawbacks.

What to look for in a business plan template

Not all business plan templates are created equal. As you weigh your options and decide which template(s) you’ll use, be sure to review them with the following criteria in mind:

• Easy to edit: A template should save you time. That won’t be the case if you have to fuss around figuring out how to edit the document, or even worse, it doesn’t allow you to edit at all.
• Contains the right sections: A good template should cover all essential sections of a business plan , including the executive summary, product/service description, market/competitive analysis, marketing and sales plan, operations, milestones, and financial projections. 
• Provides guidance: You should be able to trust that the information in a template is accurate. That means the organization or person who created the template is highly credible, known for producing useful resources, and ideally has some entrepreneurial experience.
• Software compatibility: Lastly, you want any template to be compatible with the software platforms you use. More than likely, this means it’s available in Microsoft Word, Google Docs, or PDF format at a minimum. 

1. Bplans — A plan with expert guidance

Since you’re already on Bplans, I have to first mention the templates that we have available. 

Our traditional and one-page templates were created by entrepreneurs and business owners with over 80 years of collective planning experience. We revisit and update them annually to ensure they are approachable, thorough, and aligned with our team’s evolving best practices.  

The templates, available in Word, PDF, or Google Doc formats, include in-depth guidance on what to include in each section, expert tips, and links to additional resources. 

Plus, we have over 550 real-world sample business plans you can use for guidance when filling out your template.

Download: Traditional lender-ready business plan template or a simple one-page plan template .

Brought to you by

Create a professional business plan

Using ai and step-by-step instructions.

Secure funding

Validate ideas

Build a strategy

2. SBA — Introduction to business plans

The U.S. Small Business Administration (SBA) offers two different business plan templates along with a short planning guide. 

While not incredibly in-depth, it’s enough to help you understand how traditional and lean plans are structured and what information needs to be covered. The templates themselves are more like examples, providing you with a finished product to reference as you write your plan.

The key benefit of using these templates is that they were created by the SBA. While they may provide less guidance, you can be assured that the information and structure meet their expectations.

Explore: The SBA’s planning guide and free templates

3. SCORE — Planning workbook

SCORE’s template is more like a workbook. It includes exercises after each section to help you get your ideas down and turn them into a structured plan.

The market research worksheets are especially useful. They provide a clear framework for identifying your target market and analyzing competitors from multiple angles. Plus, they give you an easy way to document all the information you’re collecting.

You will likely have to remove the exercises in this template to make it investor-ready. But it can be worth it if you’re struggling to get past a blank page and want a more interactive planning method.

Download: SCORE’s business plan template

4. PandaDoc — A template with fillable forms

PandaDoc’s library offers a variety of industry-specific business plan templates that feature a modern design flair and concise instructions. 

These templates are designed for sharing. They include fillable fields and sections for non-disclosure agreements, which may be necessary when sending a plan to investors.  

But the real benefit is their compatibility with PandaDoc’s platform. Yes, they are free, but if you’re a PandaDoc subscriber, you’ll have far more customization options. 

Out of all their templates, the standard business plan template is the most in-depth. The rest, while still useful, go a bit lighter on guidance in favor of tailoring the plan to a specific industry.

Explore: PandaDoc’s business plan template library  

5. Canva — Pitch with your plan

Canva is a great option for building a visually stunning business plan that can be used as a pitch tool. It offers a diverse array of templates built by their in-house team and the larger creative community, meaning the number of options constantly grows.

You will need to verify that the information in the template you choose matches the standard structure of a traditional business plan. 

You should do this with any template, but it’s especially important with any tool that accepts community submissions. While they are likely reviewed and approved, there may still be errors.

Remember, you can only edit these templates within Canva. Luckily, you only need a free subscription, and you may just miss out on some of the visual assets being used. 

To get the most value, it may be best to create a more traditional planning document and transfer that information into Canva. 

Explore: Canva’s business plan gallery

6. ClickUp — The collaborative template

Out of all the project management tools that offer free business plan templates, ClickUp’s is the most approachable.

Rather than throwing you into all the features and expecting you to figure it out—ClickUp provides a thorough startup guide with resource links, images, and videos explaining how to write a plan using the tool. 

There’s also a completed sample plan (structured like an expanded one-page plan) for you to reference and see how the more traditional document can connect to the product management features. You can set goals, target dates, leave comments, and even assign tasks to someone else on your team. 

These features are limited to the ClickUp platform and will not be useful for everyone. They will likely get in the way of writing a plan you can easily share with lenders or investors. 

But this is a great option if you’re looking for a template that makes internal collaboration more fluid and keeps all your information in one place.

Sign Up: Get a free trial of ClickUp and explore their template library

7. Smartsheet — A wide variety of templates

I’m including Smartsheet’s library of templates on this list because of the sheer number of options they provide. 

They have a simple business plan template, a one-page plan, a fill-in-the-blank template, a plan outline, a plan grading rubric, and even an Excel-built project plan. All are perfectly usable and vary in visual style, depth of instructions, and the available format.

Honestly, the only drawback (which is also the core benefit) is that the amount of templates can be overwhelming. If you’re already uncertain which plan option is right for you, the lengthy list they provide may not provide much clarity.

At the same time, it can be a great resource if you want a one-stop shop to view multiple plan types.

Explore: Smartsheet’s business plan template library  

8. ReferralRock affiliate marketing business plan

I’m adding ReferralRock’s template to this list due to its specificity. 

It’s not your standard business plan template. The plan is tailored with specific sections and guidance around launching an affiliate marketing business. 

Most of the template is dedicated to defining how to choose affiliates, set commissions, create legal agreements, and track performance.

So, if you plan on starting an affiliate marketing business or program, this template will provide more specific guidance. Just know that you will likely need to reference additional resources when writing the non-industry sections of your plan.

Download: ReferralRock affiliate marketing business plan template

Does it matter what business plan template you use?

The short answer is no. As long as the structure is correct, it saves you time, and it helps you write your business plan , then any template will work. 

What it ultimately comes down to, is what sort of value you hope to get from the template. 

• Do you need more guidance? 
• A simple way to structure your plan? 
• An option that works with a specific tool?
• A way to make your plan more visually interesting?

Hopefully, this list has helped you hone in on an option that meets one (or several) of these needs. Still, it may be worth downloading a few of these templates to determine the right fit. 

And really, what matters most is that you spend time writing a business plan . It will help you avoid early mistakes, determine if you have a viable business, and fully consider what it will take to get up and running. 

If you need additional guidance, check out our library of planning resources . We cover everything from plan formats , to how to write a business plan, and even how to use it as a management tool . 

If you don’t want to waste time researching other templates, you can download our one-page or traditional business plan template and jump right into the planning process.

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Kody Wirth is a content writer and SEO specialist for Palo Alto Software—the creator's of Bplans and LivePlan. He has 3+ years experience covering small business topics and runs a part-time content writing service in his spare time.

Table of Contents

• Qualities of a good template
• ReferralRock
• Does the template matter?

Related Articles

12 Min. Read

Do You Need a Business Plan? Scientific Research Says Yes

10 Min. Read

14 Reasons Why You Need a Business Plan

6 Min. Read

Business Plan vs Business Model Canvas Explained

Use This Simple Business Plan Outline to Organize Your Plan

The Bplans Newsletter

The Bplans Weekly

Subscribe now for weekly advice and free downloadable resources to help start and grow your business.

We care about your privacy. See our privacy policy .

The quickest way to turn a business idea into a business plan

Fill-in-the-blanks and automatic financials make it easy.

No thanks, I prefer writing 40-page documents.

Discover the world’s #1 plan building software

Our use of cookies

We use necessary cookies to make our site work (for example, to manage your session). We’d also like to use some non-essential cookies (including third-party cookies) to help us improve the site. By clicking ‘Accept recommended settings’ on this banner, you accept our use of optional cookies.

Necessary cookies

Necessary cookies enable core functionality on our website such as security, network management, and accessibility. You may disable these by changing your browser settings, but this may affect how the website functions.

Analytics cookies

We use analytics cookies so we can keep track of the number of visitors to various parts of the site and understand how our website is used. For more information on how these cookies work please see our Cookie policy .

Prudential Regulation Authority Business Plan 2024/25

Related links related links.

• PRA annual reports and business plans
• CP4/24 – Regulated fees and levies: Rates proposals 2024/25

Maintain and build on the safety and soundness of the banking and insurance sectors, and ensure continuing resilience

Be at the forefront of identifying new and emerging risks, and developing international policy

Support competitive and dynamic markets, alongside facilitating international competitiveness and growth, in the sectors that we regulate, run an inclusive, efficient, and modern regulator within the central bank, the pra’s strategy.

Our strategy for 2024/25 will be delivered through our strategic goals, extracts of which are below. For the full detail of our workplan against each strategic priorities, see pages 10 to 41 of this Business Plan . 

Foreword by Chief Executive Sam Woods

Sam Woods Deputy Governor, Prudential Regulation Chief Executive of the PRA

First, this will be our first full year operating under the Financial Services and Markets Act (FSMA 2023), which established a new, post-Brexit regulatory framework for the UK. FSMA 2023 expanded our rulemaking responsibilities and gave us a new secondary objective to support the competitiveness and growth of the United Kingdom.

Competitiveness and growth have always been important considerations for the PRA. Nonetheless, this new objective represents a significant change, and embedding it into our approach has been a major priority for the organisation as a whole, and for me personally as CEO. That effort will continue this year.

Our business plan includes a range of initiatives aimed squarely at promoting the UK’s competitiveness and growth. Some of the most significant are:

• Our ‘Strong and Simple’ project, which aims to simplify regulatory requirements for smaller banks, thus reducing compliance burdens without compromising on strong standards.
• The ‘Solvency UK’ reforms of insurance capital standards, which will reduce bureaucracy in the regulatory regime, while also allowing insurers to invest in a wider range of productive assets.
• The Banking Data Review, which aims to reduce burdens on firms by focusing our data collection on the most useful and relevant information.
• Improvements to our authorisation processes – we have made significant progress in improving the speed and efficiency of authorisations without sacrificing the robustness of our controls; maintaining this progress will be a key focus for next year.
• Reforms to ring-fencing, following the independent review led by Sir Keith Skeoch.

The second point I want to highlight is our ongoing programme of work to maintain the resilience of the UK’s banking and insurance sectors, which is at the heart of our role. The events of 2023 (including the high-profile failures of Silicon Valley Bank (SVB) and Credit Suisse (CS)) demonstrate the importance of a focus on resilience – and while I am encouraged by how the UK banking and insurance sectors have remained stable through a stressful period, we cannot take this for granted.

A major priority this year will be the implementation of the Basel 3.1 standards, which will complete the long process of post-financial crisis regulatory reform. While I expect the capital impact of these reforms to be limited for UK banks, they will nonetheless play a vital role in maintaining sufficient consistency in risk measurement across firms and jurisdictions – which is the cornerstone of the bank capital regime.

Another major priority this year will be ensuring firms have adequate standards of operational and cyber resilience. Following FSMA 2023, we have new powers to oversee the services provided to regulated firms by so-called ‘critical third parties’, and we will be implementing that regime over the coming year. And in March 2025 we will reach an important milestone with the full implementation of our wider operational resilience policy.

The day-to-day work of supervision will continue alongside these reforms. As always, our supervisory teams continue to work with PRA-regulated firms to ensure high standards of financial and operational resilience, governance, risk management, and controls. Stress testing remains a key element of our approach to resilience, and alongside colleagues from the wider Bank of England we will deliver a desk-based stress test of banks, and a system-wide exploratory scenario, in 2024. We will also work towards the next round of insurance stress tests in 2025.

I have really only scratched the surface of the work we are doing this year, as you can see from a glance at this document’s contents page. In order to deliver this work, we will need to run an efficient and effective regulator, and I am particularly excited by the potential of our data and analytics agenda to create new opportunities to improve how we work. And if past years are anything to go by, we will continue to engage with innovation in many forms across the industry, whether in the form of new entrants or new approaches to doing business in areas like digital money.

I am very much looking forward to the challenges that the next year will bring, and to working together with a team of very committed colleagues at the PRA to deliver on this business plan.

11 April 2024

Overview of responsibilities and approach

The PRA has two primary objectives: a general objective to promote the safety and soundness of PRA-authorised persons, and an objective specific to insurance firms for the protection of policyholders.

The PRA has two secondary objectives:

• the competition objective, which is focused on facilitating effective competition in the markets for services provided by PRA-authorised persons in carrying on regulated activities; and
• the competitiveness and growth objective, which is focused on facilitating, subject to alignment with relevant international standards, (a) the international competitiveness of the economy of the UK (including, in particular, the financial services sector through the contribution of PRA-authorised persons), and (b) its growth in the medium to long term.

In its December 2022 recommendations letter to the Prudential Regulation Committee (PRC), HM Treasury (HMT) set out aspects of the Government’s economic policy to which the PRA must have regard, while building on the important themes of openness, competitiveness, competition, and innovation, as well as delivering energy security and net zero.

In December 2023, the PRA published a consultation paper (CP)27/23 – The Prudential Regulation Authority’s approach to policy , which sets out the PRA’s approach to policymaking as it takes on expanded rule-making powers introduced through FSMA 2023. These expanded powers will enable the PRA to replace relevant assimilated law (previously known as retained EU law) with PRA rules and other policy material, and move towards a more British system of regulation, with most of the technical rules made by independent UK regulators within a framework set by Parliament. In addition, FSMA 2023 introduces new accountability measures that require the PRA to keep its rules under review , and to establish a Cost Benefit Analysis (CBA) Panel composed of external members, which will scrutinise and provide input into the PRA’s CBA framework. These measures should enable the PRA to deliver policies that are well suited to the UK’s financial sector. In addition:

• In December 2023, the PRA took a significant step towards implementing the remaining Basel III standards in the UK by publishing the first of two near-final sets of rules with policy statement (PS)17/23 – Implementation of the Basel 3.1 standards near-final part 1 , which takes account of responses received to CP16/22 . The near-final rules aim to promote the safety and soundness of PRA-regulated firms and support their international competitiveness by making capital ratios more consistent, comparable, and aligned with international standards. The PRA will publish its second near-final policy statement in 2024 Q2 on the remaining aspects of the Basel 3.1 package, which include credit risk, the output floor, reporting, and disclosure requirements. The PRA plans to implement the Basel 3.1 standards over a 4.5-year transitional period beginning on 1 July 2025 and ending on 1 January 2030. Among other things, the PRA will also continue to support international efforts to monitor and promote the implementation of Basel 3.1.
• In December 2023, the PRA published PS15/23 – The Strong and Simple Framework: Scope Criteria, Liquidity and Disclosure Requirements , taking account of feedback to CP4/23 . The policy addresses liquidity and disclosure requirements for Simpler-regime Firms and Pillar 3 remuneration disclosure. The PRA will move further towards finalising and implementing the Strong and Simple prudential framework for Small Domestic Deposit Takers (SDDTs) during 2024. footnote [1]
• Following the publication of discussion paper (DP)3/22 – Operational resilience: Critical third parties to the UK financial sector , in December 2023, the PRA published CP26/23 , jointly with the Bank of England (‘the Bank’) and FCA (‘the supervisory authorities’). CP26/23 sets out the supervisory authorities’ proposed requirements for critical third parties (CTPs), footnote [2] including the mechanism for identifying potential CTPs, recommending them for designation by HMT, incident notification triggers and requirements, and proposed CTP Fundamental Rules. In 2024, the PRA will continue to work with the supervisory and other authorities to develop the final policy and oversight approach.
• In September 2023, the PRA published CP19/23 – Review of Solvency II: Reform of the Matching Adjustment , which marks a significant milestone in the PRA's reforms to the Solvency II regime for the UK insurance market. Following the publication of PS2/24 – Review of Solvency II: Adapting to the UK insurance market and PS3/24 – Review of Solvency II: Reporting and disclosure phase 2 near-final , the PRA will publish its final rules, subject to alignment with anticipated legislation, in 2024.

The PRA’s objectives and priorities are delivered through regulation and supervision, and by developing standards and policies that set out expectations of firms. The PRA’s approach to supervision is forward-looking, judgement-based, and focused on the issues and firms that pose the greatest risk to the stability of the UK financial system and policyholders. This approach is set out in the  PRA’s approach to supervision of the banking and insurance sectors .

The PRA’s regulatory focus is primarily at the individual firm and sector level, with the most important decisions taken by the PRC, which works with the Bank’s other areas of remit, including its role as supervisor of Financial Market Infrastructures (FMIs), the UK’s Resolution Authority, and its committees, including the Financial Policy Committee (FPC), which has responsibility for the stability of the entire UK financial system. The PRA also works closely with the Financial Conduct Authority (FCA), including through the Chief Executive of the PRA being a member of the FCA Board and the Chief Executive of the FCA being a member of the PRC.

The PRA regulates 1,330 firms and groups. footnote [3] These consist of 730 deposit-takers (banks, building societies, credit unions, and designated investment firms footnote [4] (DIFs)), and 600 insurers of all types (general insurers, life insurers, friendly societies, mutuals, the London market, and insurance special purpose vehicles (ISPVs)).

Chart 1: PRA supervised deposit-takers, as at January 2024

Chart 2: pra supervised insurers, as at january 2024, the pra’s strategy, shaping the pra’s strategy.

Each year, the PRA is required by law footnote [5] to review and, if necessary, revise its strategy in line with its statutory objectives:

• the general primary objective to promote the safety and soundness of PRA-authorised firms;
• specifically for insurance firms, a primary objective to contribute to the securing of an appropriate degree of protection for those who are or may become policyholders;
• a secondary objective to act, so far as is reasonably possible, in a way that facilitates effective competition in the markets for services provided by PRA-authorised firms; and
• a new secondary objective to act, so far as reasonably possible, in a way that facilitates the UK economy’s international competitiveness and its growth over the medium to long term, subject to alignment with international standards.

In addition to the statutory objectives, the PRA’s strategy is shaped by other responsibilities, such as the requirement to implement legislation and other changes necessary to meet international standards, and to continue to adapt to market changes in areas such as financial technology (FinTech), climate change, and digitalisation.

When considering how to advance its objectives, there are a set of regulatory principles to which the PRA must also have regard. This includes regulatory principles from FSMA 2000, and considerations from HMT’s December 2022 letter to the PRC on the Government’s economic policy, the Equality Act 2010, the Legislative and Regulatory Reform Act 2006, and the Natural Environment and Rural Communities Act 2006. In its pursuit of its objectives, the PRA will review all the regulatory principles, identify which are significant to the proposed policy, and judge the extent to which they should influence the outcome being sought.

Furthermore, as part of the Bank, the PRA contributes to the delivery of the Bank’s wider financial stability and monetary policy objectives, for example by:

• maintaining and, where appropriate, strengthening or updating prudential standards;
• being at the forefront of identifying new and emerging risks, and developing international policy; and
• ensuring that banks and other financial institutions can continue to provide essential services.

Strategic priorities for 2024/25

This year’s business plan continues to be structured around the PRA’s four strategic priorities, as set out in its 2023/24 Business Plan . The PRA’s strategic priorities for 2024/25 will remain unchanged because the PRA updated its priorities in 2023 to take account of its new powers, new secondary objective, and expanded role brought about by FSMA 2023. The strategic priorities for 2024/25 are to:

• maintain and build on the safety and soundness of the banking and insurance sectors, and ensure continuing resilience;
• be at the forefront of identifying new and emerging risks, and developing international policy;
• support competitive and dynamic markets, alongside facilitating international competitiveness and growth, in the sectors that we regulate; and
• run an inclusive, efficient, and modern regulator within the central bank.

PRA Business Plan 2024/25

Maintain and build on the safety and soundness of the banking and insurance sectors and ensure continuing resilience.

During the decade following the financial crisis of 2007-09, the PRA designed and implemented extensive reforms that materially improved the safety and soundness of firms, insurance policyholder protection, and financial stability. Since then, the robust regulatory standards that the PRA has implemented and its strong international collaboration have played a key role in maintaining the resilience of the banking and insurance sectors, consistent with its objectives and those of the FPC. The PRA will continue to ensure that the firms it regulates remain adequately capitalised and have sufficient liquidity and stable funding profiles, with appropriately defined impact tolerances for disruption to their business services. The PRA’s regulatory framework encourages PRA-regulated firms to take a holistic approach to managing risks by identifying, monitoring, and taking action to remove or reduce systemic risks.

The PRA’s role as a rulemaker was further expanded following the introduction of FSMA 2023. Under the new regulatory framework , the PRA will continue to be a strong, accountable, responsive, and accessible policymaker, and make rules to meet its regulatory obligations, while adopting a risk-based approach, as set out in CP27/23 , in a way that is tailored to the specific features of financial services in the UK. Among other things, the PRA will continue to faithfully implement agreed international standards and reforms in a way that best serves the UK. For example, in 2024 the PRA will publish its final rules on the implementation of the Basel 3.1 standards and on replacing relevant and/or remaining firm-facing Solvency II requirements from assimilated law with the PRA’s own rules, which will become part of the PRA’s Rulebook and other policy materials. In addition, the PRA will move further towards finalising and implementing the Strong and Simple prudential framework , which provides a simpler but robust set of prudential rules for non-systemic, domestic-focused banks and building societies in the UK.

The PRA will also continue to pay particular attention to the business opportunities and threats that are posed by changes in the economic environment, both in the UK and other jurisdictions, that could pose risks to the UK.

The PRA will continue to promote a strong risk culture among regulated firms, including a conscious and controlled approach to risk taking activities, and ensure that this is supported by adequate financial and non-financial resources. At the same time, the PRA will maintain a robust regulatory regime that is able to respond to the external factors that pose the greatest risk to firms’ safety and soundness.

Risk factors also include global geopolitical risks, which have intensified over the past year. The PRA will continue to ensure that PRA-regulated firms are resilient to such risks by liaising with both domestic and international regulatory counterparts and continuing to monitor and engage with affected firms. Effective international collaboration remains central to addressing global risks and maintaining UK financial stability as well as the safety and soundness of internationally active firms.

The PRA will monitor and assess firms’ ability to manage cyber threats through the ongoing use of threat-led penetration testing ( CBEST and STAR-FS ) and the cyber questionnaire ( CQUEST ). In collaboration with the FCA, including in response to known technology, cyber and third-party incidents, the PRA will continue to monitor and engage with firms on their execution of large and complex IT change programmes. Furthermore, the FPC’s cyber stress testing has broadened the PRA’s understanding of how operational disruptions such as cyberattacks may affect financial stability.

The PRA will continue to engage in collective action to develop a view on sector-wide risks, support the building of firm- and sector-level resilience, and enhance the sector’s ability to respond to system-wide disruption. This will include ongoing sector engagement through the Cross-Market Operational Resilience Group (CMORG), which delivers industry guidance, response capabilities, and technical solutions, and through cross-jurisdictional coordination via the G7 Cyber Experts Group (CEG). Through CMORG, the PRA will deliver a sector-wide simulation exercise (SIMEX24) to assess the sector’s resilience to major operational disruption. The PRA will continue to develop its ability to respond to operational incidents in the sector through its authorities ( Authorities Response Framework ) and sector ( Cross Market Business Continuity Group ) response mechanisms.

Financial resilience – banking

Implementation of the basel 3.1 standards.

In March 2023, the PRA concluded its consultation on proposals published in November 2022 about the parts of the Basel III standards that remain to be implemented in the UK (‘Basel 3.1’). In September 2023, the PRA announced that it would split the publication of the near-final Basel 3.1 rules in two, moving implementation back by six months to 1 July 2025 to reduce the transitional period to 4.5 years and ensure full implementation by 1 January 2030, in line with the proposals set out in CP16/22. The first near-final PS17/23 – Implementation of the Basel 3.1 standards near-final part 1 , covering market risk, credit valuation adjustment risk, counterparty credit risk, and operational risk, was published in December 2023. The PRA will publish the second near-final PS, covering the remaining elements of credit risk, the output floor, as well as Pillar 3 disclosure and reporting requirements, in due course.

The near-final rules from the two PSs will be made final once Parliament has revoked the relevant parts of the Capital Requirements Regulation (CRR). The PRA expects this to happen later in 2024. In addition to finalising Basel 3.1 rules, the PRA will continue to increase its supervisory focus on firms’ implementation plans.

Bank stress testing

The concurrent stress testing of firms is one of the key tools used by the PRA and the Bank to support their microprudential and macroprudential objectives. Banking stress tests examine the potential impact of a hypothetical scenario on the major UK banks and building societies that make up the banking system, and on the system as a whole. The PRA normally runs two types of banking stress test – the annual cyclical scenario and other exploratory scenarios.

In 2024, the PRA will support the Bank in taking stock of and updating its framework for concurrent bank stress testing. The stocktake will draw on lessons from the first decade of concurrent stress testing, and so ensure that the framework continues to support the FPC and PRC in meeting its objectives. The PRA will also contribute to supporting the Bank’s desk-based stress test in 2024, which is being conducted in place of an ACS. The desk-based exercise will make use of the PRA’s risk expertise along with models developed in the PRA and elsewhere in the Bank to test the financial resilience of the UK banking system under more than one adverse macroeconomic scenario. Stress testing exercises involving firm submissions of stressed projections are currently expected to resume in 2025.

In addition, the Bank is conducting a system-wide exploratory scenario (SWES), working closely with and with the full support of the PRA, FCA, and TPR (The Pensions Regulator). The exercise was launched in June 2023 and aims to improve the understanding of the behaviours of banks and non-bank financial institutions (NBFI) in stressed financial market conditions. The participating firms in this exercise are representative of markets that are core to UK financial stability.

Private equity and credit

The evolving macro environment is expected to challenge firms’ approach to risk management, increasing the need for robust governance, risk management, and controls. One area of focus for the PRA will be exposures to NBFI, particularly any challenges that may manifest around the trend toward illiquid private equity financing and private credit. The PRA will continue to closely monitor private asset financing and the way that firms consider the risks they could face from these activities. In particular, the PRA will look for further improvements in firms’ ability to identify and assess correlations across financing activities with multiple clients.

Replacing assimilated law

HMT has prioritised the CRR as one of the initial areas of focus in the process of transferring assimilated law into the supervisory authorities’ rules and legislation following the enactment of FSMA 2023. The latter granted the PRA expanded rulemaking powers to replace assimilated law with PRA rules, thereby moving towards a more British system of regulation. In 2024/25, the PRA will consult on proposed rules to replace, with modifications where appropriate, the relevant firm-facing provisions in Part Two of the CRR.

Model risk management (MRM) and internal ratings-based approach/hybrid models

Banks’ use of and reliance on models and scenario analysis to assess future risks has increased significantly over the past decade. The introduction of new, sophisticated modelling techniques – including the potential use of Artificial Intelligence and Machine Learning (AI/ML) – has highlighted the need for sound model governance and effective model risk management practices.

In 2023, the PRA published a supervisory statement (SS)1/23 – Model risk management principles for banks , which applies to firms with internal model (IM) approval to calculate regulatory capital requirements. It is structured around five high-level principles that set out the core disciplines necessary for a robust model risk management framework to manage model risk effectively across all model and risk types. The adoption of these principles will help banks to develop good practices of model risk management, raising prudential standards at banks operating in the UK. The new policy comes into effect on 17 May 2024. Banks within the scope of the policy are expected to conduct an initial self-assessment against these principles, and, where relevant, prepare remediation plans to address any identified shortcomings.

During 2024, the PRA will focus on how banks are embedding and implementing the expectations set out in SS1/23. In particular, the PRA will seek to understand the extent to which banks’ management teams are adopting the principles and promoting the management of model risk as a risk discipline in its own right across their firms.

The PRA has published a range of policy statements on changes to the internal ratings-based (IRB) approach to credit risk over recent years. footnote [6] The PRA will continue to work with firms as they progress their model approval and review submissions in line with these requirements and expectations. The PRA will focus on the ‘hybrid’ approach to mortgage modelling, and the IRB repair programme, both carried forward from previous years.

Where appropriate, firms are holding post-model adjustments (PMAs) in the form of risk-weighted asset (RWA) add-ons, helping to mitigate potential capital underestimation while they develop their new models. During 2024, the PRA will continue to assess the adequacy of the PMAs to ensure any potential capital underestimation is addressed.

Liquidity risk management

The events of 2023 brought a further focus on the liquidity and funding risks faced by deposit takers, in particular the deposit outflows experienced by CS and SVB leading up to their acquisition and resolution, respectively.

The PRA will continue its close supervision of firms’ liquidity and funding risks in light of recent stresses. Through its ongoing supervision of banks and building societies, the PRA will follow up on how firms are taking account of the lessons they learnt from the events at CS and SVB. The PRA will continue to use its regular programme of Liquidity Supervisory Review and Evaluation Processes (L-SREPs) across PRA-authorised firms to assess their liquidity and funding risks, in quantitative and qualitative terms, and to ensure appropriate financial and non-financial resources are in place to manage and mitigate these risks.

The PRA will also continue to engage with firms and within the wider Bank on PRA-authorised firms’ access to the Bank’s Sterling Monetary Framework .

The PRA will also monitor closely how firms consider changes in depositor behaviour in the current funding environment and proactively take into consideration forthcoming changes in bank funding and liquidity conditions. footnote [7]

Credit risk management

The PRA is closely monitoring firms’ credit risk management practices given the uncertain credit risk outlook across key markets. The PRA’s assessment will include a focus on how credit risk management practices have evolved – in particular, how they can remain robust and adaptable to changing conditions, whether there is appropriate consideration of downside and contagion risks, as well as firms’ monitoring and planning for the impacts of customer refinancing. The PRA will undertake a thematic review of smaller firms’ credit risk management frameworks during 2024/25.

The PRA will monitor changes to firms’ business mix and credit exposures, and continue to monitor vulnerable segments, including cyclical sectors and key international portfolios, as well as traditionally higher-risk portfolios such as buy-to-let, credit cards, unsecured personal loans, small to medium-sized enterprises, leveraged lending, and commercial real estate. In addition, counterparty credit risk will remain a key area of supervisory focus through 2024, especially exposures to NBFI across certain business lines.

Separately, in 2024, the PRA will continue to progress its review of regulatory policies to assess whether the policy framework for trading book risk management, controls, and culture is adequate, robust, and accessible.

The UK banking system is well capitalised. However, the overall operating and risk environment remains challenging, and firms must manage their financial resilience to ensure that the financial sector can continue to support businesses and households. The PRA will continue to assess firms’ capital positions and planning, including firms’ use of forward-looking capital indicators, stress testing, and contingency plans.

The PRA intends to review its Pillar 2A methodologies (see section ‘Review of the Pillar 2 framework’ of PS17/23 ) for banks after the rules on Basel 3.1 are finalised, with a view to consulting on any proposed changes in 2025.

Securitisation regulation

HMT has prioritised the Securitisation Regulation as one of the initial areas of focus in the process of transferring assimilated law into regulatory rules and legislation following the enactment of FSMA 2023. The PRA will publish its final policy (simultaneously with the FCA) on final rules to replace or modify the relevant firm-facing provisions in the Securitisation Regulation and related Technical Standards in 2024-25.

The PRA also intends to consult on draft PRA rules to replace firm-facing requirements, subject to HMT making the necessary legislation. The PRA has gathered views and evidence from firms through DP3/23 – Securitisation: capital requirements , which will inform its approach to capital requirements for securitisation.

Financial resilience – insurers

Solvency uk implementation.

In June 2024, the PRA will publish its final policy on the matching adjustment (MA) reforms set out in CP19/23 – Review of Solvency II: Reform of the Matching Adjustment . The majority of these reforms will take effect from end-June to allow PRA-authorised firms to take immediate advantage of new investment opportunities. The remaining Solvency II reforms consulted upon in CP12/23 – Review of Solvency II: Adapting to the UK insurance market will take effect on 31 December 2024.

To facilitate implementation of the reforms consulted on in CP12/23 and CP19/23, the PRA will streamline the application processes for new internal model permissions and variations of existing permissions. There will be similar proposals for MA permissions, if the final policy is the same as set out in the CP. The PRA remains committed to assessing and providing decisions on applications for permissions as quickly as possible and aims to do this within the timescales published in the associated statements of policy. This will be supported by the establishment of dedicated, specialised teams for reviewing applications.

In practice, delivering timely decisions will in part depend on good engagement between firms and the PRA during the application process, and on the preparation of high-quality and complete applications by firms. To facilitate this, the PRA will publish templates for use by firms , including templates for reporting the updated Matching Adjustment Asset and Liability Information Return (MALIR) and the Analysis of Change (AoC) and Quarterly Model Change (QMC) for internal models. These measures are intended to assist with a smooth transition to the Solvency UK regime.

A variety of proposals were made in responses to CP19/23 to further reform the MA in the form of so-called ‘sandboxes’, which would allow an element of self-certification of eligibility, or a route to further expand eligibility in response to innovations in primary financing markets. In 2024, the PRA will explore these proposals with industry with the goal of determining whether they can be developed into schemes that further advance the objectives of the Solvency II review.

Solvency II reporting reforms

To deliver the regulatory reporting and disclosure reforms consulted on in CP14/22 and CP12/23 , the PRA published PS3/24 – Review of Solvency II: Reporting and disclosure phase 2 near-final , including finalised templates and instruction files. The PRA will also publish a finalised single taxonomy package in 2024 Q2, which encompasses proposals in CP14/22 and CP12/23 , and deletions published in PS29/21 . The PRA will engage with firms, including through industry roundtables, to prepare them in meeting the new reporting requirements coming into force from 31 December 2024.

Solvency II transfer

The PRA will publish a CP in 2024 H1 that will set out how it will transfer the remaining Solvency II requirements from assimilated law into the PRA Rulebook and other policy material such as supervisory statements or statements of policy (‘the UK framework’).

This will provide a more comprehensive Rulebook and will make it easier for firms to access and navigate the rules that apply to them.

Insurance stress testing

Stress testing forms an important part of the PRA’s supervisory approach and risk assessment of insurance firms, helping to assess and identify the vulnerabilities of life and general insurance sectors to a range of risks in different scenarios.

Major life insurers participate in regular and concurrent stress testing prescribed by the PRA, and the next test will take place in 2025. For the first time, the PRA will publish the individual results of the largest annuity-writing firms to help inform stakeholders about the level of firms’ resilience in the scenarios set out, and thereby strengthen market discipline.

The PRA will continue to engage with the industry on the technical, operational, and communication aspects of the stress test, and will publish an approach document for the life insurance stress test 2025. The 2025 test will for the first time include an exploratory scenario to assess exposure to the recapture of funded reinsurance contracts.

For general insurers, the PRA has previously conducted four general insurance stress test exercises between 2015 and 2022. In 2025, the PRA will run its first dynamic stress test . The objectives of the exercise will be to:

• assess the industry’s solvency and liquidity resilience to a specific adverse scenario;
• assess the effectiveness of insurers’ risk management and management actions following an adverse scenario; and
• inform the PRA’s supervisory response following a market-wide adverse scenario.

The dynamic nature of the 2025 exercise represents a significant change from previous exercises and will involve simulating a sequential set of adverse events over a short period of time. The PRA has begun engaging with industry trade bodies and will provide more details of this exercise (including participation, design, and timelines) during 2024. Results of this exercise will be disclosed at an aggregate industry level.

Cyber underwriting risk

As the scope of technology continues to expand globally, cyber underwriting risk has become increasingly relevant, as reflected in the actual and planned growth of cyber insurance within the UK sector. As well as being inherently volatile and systemic in nature, cyber underwriting risk is diverse in how it can manifest in different lines of business.

Given the uncertainty of this risk, robust risk management, risk appetite-setting, and stress testing will be important factors in ensuring that capital and exposure management capabilities reflect firms’ actual exposures.

Monitoring and assessing cyber underwriting risk will be at the core of the PRA’s supervisory focus, particularly for firms with material exposures. The PRA will share the aggregate findings of its recent thematic project focused on cyber underwriting risk with industry, and continue to monitor the risk landscape and market dynamics to identify and assess potential risk drivers, including areas such as contract (un)certainty risk.

Model drift

The PRA will continue its scrutiny of internal models used by insurers to calculate capital requirements and aid risk management, to identify potential trends in the strength of firms’ calibrations, and as an indicator of the effectiveness of firms’ risk management.

In its 2023 model drift analysis , the PRA identified a number of findings across firms using internal models within the non-life sector. These are related to levels of allowances for inflation uncertainty, potential optimism in expected underwriting profits, potential optimism in the cost and benefit of reinsurance, and the limited allowance for economic and geopolitical uncertainties.

In 2024, the PRA will address perceived systemic trends that may weaken the robustness of models used across the market as a whole. The PRA will also focus on specific model drift within individual firms, with an emphasis on improving the effectiveness of internal model validation, so that firms can develop the capability to self-identify and address potential challenges.

Funded reinsurance

In 2024, the PRA will continue to pay close attention to the rapidly increasing use of funded reinsurance transactions in the UK life insurance market, and the risks that the growth in their use may pose to policyholder protection and UK financial stability. The PRA is particularly focused on the risk of an erosion in standards for assets used as collateral in these transactions, and individual and sectoral concentrated exposures to correlated, credit-focused counterparties.

As well as preparing to examine exposures to the recapture of funded reinsurance in the 2025 life insurance stress test, in 2024. The PRA will also, subject to responses to CP24/23 – Funded reinsurance , finalise and implement its policy expectations for UK life insurers that use funded reinsurance arrangements. As stated in the PRA’s letter on ‘ Insurance supervision: 2024 priorities ’, these policy expectations will cover how firms should manage risks associated with funded reinsurance at both individual transaction and at aggregate level. This will include the expectation that firms place limits on their activities to ensure sound risk management.

Impact on general and claims inflation

Claims inflation continues to be a significant risk for general insurers. Following a thematic review, the PRA published a Dear Chief Actuary letter in June 2023 setting out its findings that, while reserves have increased, there remains material uncertainty and the potential for excessive optimism with respect to reserving, pricing, and capital and reinsurance planning.

The PRA expects a continued lag in the emergence of claims inflation in the data, which insurers should be alert to. The PRA will continue to monitor the ongoing impact through the regulatory data collected and supervisory activities throughout 2024. Should the PRA’s assessment of this risk change, further focused work may be considered.

Market-wide stresses in March 2020 and September 2022 highlighted gaps in insurers’ liquidity risk management frameworks and, consequently, the importance of having comparable, accurate, and timely information on insurers’ liquidity. The PRA will build on the existing liquidity framework, currently based on risk management expectations set out in SS5/19 – Liquidity risk management for insurers , and develop liquidity reporting requirements for insurance firms most exposed to liquidity risk. The information collected will be used to supervise firms’ liquidity positions more effectively and produce meaningful peer comparisons. The PRA will work closely with firms to inform them about its development of these requirements and explore the necessity of a minimum liquidity requirement as part of a future policy consultation.

In addition, the Bank has signalled its intention to develop a new lending tool for eligible NBFIs to help tackle future episodes of severe dysfunction in core markets that threaten UK financial stability. The development of the PRA’s approach to supervising liquidity will therefore inform the design of the lending tool as it relates to insurers.

The reforms to Solvency II offer life insurers opportunities to expand the range of credit risk assets that are used to back their annuity liabilities, and enable them to meet their commitment to invest in assets that contribute to the productivity of the economy and the transition to net zero. These opportunities require sophisticated credit risk management, and insurers’ capabilities will remain a key focus. Increased activity in the bulk purchase annuity (BPA) market is expected to lead to further growth in firms’ exposure to credit risk, and potentially to concentrations in exposure to internally valued and rated assets.

The PRA will continue to focus on the effectiveness of firms’ credit risk management capabilities and seek further assurance that firms’ internal credit assessments appropriately reflect the risk profile of their asset holdings. The PRA will assess how firms’ credit risk management frameworks are evolving in line with its supervisory expectations, and also review the suitability of firms’ current and forward-looking internal credit assessment validation plans and approaches. In both cases, the PRA will seek to provide feedback on a firm-specific or thematic basis as appropriate.

Regulatory reforms

Operational risk and resilience (including the implementation of the critical third-party regime).

Operational disruption can impact financial stability, threaten the safety and soundness of individual firms and financial market infrastructures, or cause harm to consumers, policyholders, and other parts of the financial system. The PRA defines operational resilience as the ability of firms and the financial sector to prevent, respond to, recover, and learn from operational disruptions, including cyber threats.

The FCA, Bank, and PRA’s operational resilience policies came into force in March 2022 . Firms have now identified their most important business services, set impact tolerances, and commenced a programme of scenario testing. The PRA will continue to work closely with the FCA to assess firms’ progress, with a particular focus on the ability of firms to deliver important business services within defined impact tolerances during severe but plausible scenarios over a reasonable time frame, and no later than March 2025.

The PRA will also continue to monitor threats to firms’ resilience, including their growing dependency on third parties, while respecting the principle of proportionality.

Critical third parties to the UK financial sector

Section 312L of FSMA 2023 gave HMT the power to designate certain third-party service providers as ‘critical’ if they provide services to the financial sector, which, if disrupted or subject to failure, could cause financial stability concerns or risks to the confidence in the UK’s financial system. Prior to designating these parties, HMT must consult with the Bank, PRA, and FCA (the authorities the Act appoints as Regulators of the new regime). FSMA 2023 also gives the Regulators new powers to oversee the services provided by critical third parties (CTPs) to regulated firms. In December 2023, the PRA, Bank, and FCA jointly published CP26/23 – Operational resilience: Critical third parties to the UK financial sector , proposing how these powers could be used to assess and strengthen the resilience of services provided by CTPs to firms and FMIs, thereby reducing the risk of systemic disruption. The PRA will continue to work with other authorities to develop the final policy and oversight approach in 2024.

Additionally, the PRA is developing regulatory expectations on incident reporting, aligned with its operational resilience expectations.

Review of enforcement policies

Enforcement supports and supplements the PRA’s regulatory and supervisory tools by ensuring that it has credible mechanisms for holding regulated firms to account when they do not meet requirements and expectations. Enforcement policies also provide a wider deterrent effect. The PRA is therefore committed to holding individuals to account and, when appropriate, taking regulatory and/or enforcement action against those individuals that breach its standards. The PRA clearly sets out, for the benefit of the whole regulated community, the actions and standards of behaviour that are considered unacceptable ( The Bank of England’s approach to enforcement ).

In January 2024, following a review of its policies and public consultation, the PRA published PS1/24 – The Bank of England's approach to enforcement , which sets out the revised approach to enforcement across the Bank’s full remit (including when acting as the PRA).

The PRA is committed to conducting any enforcement investigations as promptly and efficiently as possible. In line with that aim, PS1/24 introduced a new Early Account Scheme (EAS or ‘the Scheme’), which provides for a new path for early cooperation and greater incentives for early admissions with the aim of reaching outcomes more quickly in specific cases.

Diversity and inclusion in PRA-regulated firms

Enhancing diversity and inclusion (D&I) can support better governance, decision-making, and risk management in firms by reducing groupthink and promoting a culture that allows employees to feel able to speak up and challenge the status quo.

In September 2023, the PRA published CP18/23 – Diversity and inclusion in PRA-regulated firms . Under the proposals, all in-scope firms would need to understand their D&I position, develop appropriate strategies to make meaningful progress, and monitor and report on progress. The proposals are flexible and carefully tailored to recognise that firms are at different stages of their work on D&I, and, most importantly, are best placed to develop their own D&I solutions.

The PRA also outlined that the proposals in CP18/23 contribute towards its secondary objectives of ensuring effective competition and facilitating competitiveness and growth, because enhanced D&I can help support greater innovation and make firms more attractive in the labour market.

In 2024, the PRA will continue its industry engagement, assess responses to CP18/23, and provide a further update in due course.

The PRA maintains flexibility to adapt and respond to changes in the external environment, economic and market developments, and any other risks that may affect its statutory objectives or priorities. The PRA has continued to use its horizon-scanning programme to achieve the following aims:

• identify emerging external risks, regulatory arbitrage, and potentially dangerous practices;
• highlight features of the regulatory regime that are not yet delivering the desired results; and
• allocate supervisory and policy resources to tackling the highest-priority risks in a timely manner.

Consistent with its mission, the PRA will continue to contribute to lessons learned internationally, policy/standards evaluation, and, in particular, internationally agreed standards with the aim of promoting the safety and soundness of the firms it regulates. For example, in 2024/25, the PRA will continue to focus on identifying and addressing emerging risks internationally, working closely with the BCBS on its response to consultations launched in 2023 (including on cryptoassets; disclosure for climate-related financial risks; and the Basel Core Principles and other outstanding work in support of its 2023/24 work programme and strategic priorities ). The PRA will also continue to work closely with the International Association of Insurance Supervisors (IAIS) on its finalisation of the Insurance Capital Standard (ICS), Insurance Core Principles on valuation (ICP 14) and capital adequacy (ICP17) .

In addition, the PRA will continue to monitor the potential for capital and profit erosion in firms that are slower to adopt new technologies, as well as firms’ involvement in new technologies, and changes in the profile of cyber-risks they face.

International engagement and influencing regulatory standards

The PRA plays a leading role in influencing international regulatory standards and will continue to participate actively in global standard-setting bodies, such as the Basel Committee on Banking Supervision (BCBS) , the IAIS, and the Financial Stability Board (FSB) .

Building on the BCBS’s report on the 2023 banking turmoil , the PRA will work with international stakeholders and the BCBS to strengthen supervisory effectiveness and identify issues that could merit additional guidance at a global level. The PRA will work with BCBS to pursue additional follow-up analytical work based on empirical evidence to assess whether specific features of the Basel Framework have performed as intended, such as liquidity risk and interest rate risk in the banking book, and assess the need to explore policy options over the medium term, alongside supporting the BCBS in pursuing its medium-term programme on evaluating the impact and efficacy of Basel III, and in light of lessons drawn from the Covid-19 pandemic.

In addition, the PRA pursues international collaboration through less formal mechanisms, for example through regular bilateral and trilateral engagements, ensuring close collaboration on a number of supervision, risk, and policy topics of joint interest. The PRA also collaborates internationally on joint global thematic reviews with other regulatory authorities, for example, to address a joint interest in banks’ exposures to NBFIs and the use of critical third parties.

The PRA will also continue to support international efforts to monitor and promote consistent implementation of Basel 3.1, as well as the implementation and monitoring of the ICS.

Supervisory co-operation

Effective international collaboration remains crucial to addressing global risks, and is central to maintaining UK financial stability, the safety and soundness of internationally active firms, and reducing regulatory arbitrage.

The PRA will continue to promote international collaboration through supervisory colleges and set out clear expectations for firms wanting to branch into the UK. The PRA will also maintain its existing memoranda of understanding (MoUs) and, if needed, expand the number of jurisdictions with which it has an MoU to facilitate the supervision of international groups and therefore enhance the safety and openness of the UK for financial services activities.

The PRA will continue to support HMT via its international collaboration activities (eg The Berne Financial Services Agreement ) and with assessments of other jurisdictions to facilitate safe access to overseas markets for UK firms, among other benefits.

Overseas bank branches

The PRA will consult on targeted refinements to its approach to banks branching into the UK, reflecting lessons from the failure of SVB to ensure the PRA’s framework for assessing branches captures activities of potential concern. The PRA is committed to the UK remaining a responsibly open jurisdiction for branches, and expects the vast majority of branch business to be unaffected by any changes. The PRA also intends to consult on clarifying expectations for group entity senior manager functions (SMFs) footnote [8] and expectations of booking arrangements.

Operational and cyber resilience

The PRA engages internationally on operational and cyber resilience, in support of its supervision objectives and to raise international standards. The PRA co-chairs the G7 Cyber Expert Group (CEG), which works to coordinate cyber resilience strategy and management across G7 jurisdictions. The PRA also co-chairs the European Systemic Cyber Group (ESCG), which helps European authorities develop systemic capabilities to prevent and mitigate risks to the financial system that might emanate from cyber incidents. The PRA has also led work at the Financial Stability Board (FSB) on cyber incident reporting. In 2024, the PRA will continue to engage with standard-setting bodies and bilaterally with other jurisdictions on third-party risk management and CTPs.

Managing the financial risks arising from climate change

Climate change presents a source of material and increasing financial risk to firms and the financial system. Managing the risks to firms’ safety and soundness from climate change requires action and remains a key priority for the PRA. The Bank first set out expectations around enhancing banks’ and insurers’ approaches to managing the financial risks emanating from climate change in April 2019 via SS3/19 –  Enhancing banks’ and insurers’ approaches to managing the financial risks from climate change . The PRA has since provided further guidance via two Dear CEO letters, footnote [9] incorporating observations from supervisory processes and the 2022 Climate Biennial Exploratory Scenario exercise , as well as by providing thematic feedback via Dear CFO letters footnote [10] to promote high-quality and consistent accounting for climate change .

As noted in its 2024 priorities letter to firms, the PRA expects firms to make further progress and demonstrate how they are responding to the PRA’s expectations, and to set out the steps they are taking to address barriers to progress. The PRA will continue to assess firms’ progress in managing climate-related financial risks. In 2024, the PRA will commence work to update SS3/19 and publish thematic findings on banks’ processes to quantify the impact of climate risks on expected credit losses.

The PRA, alongside the FCA, will continue to work with industry through the Climate Financial Risk Forum to produce practical guides and tools that help financial firms embed the financial risks from climate change into their operations. The PRA will also continue to engage with domestic and international partners, including international standard-setters, to contribute to the development of international frameworks in support of managing climate-related risks.

Artificial Intelligence and Machine Learning

Following the publication of a feedback statement (FS)2/23 – Artificial Intelligence and Machine Learning , the PRA and FCA intends to conduct the third edition of the joint survey on machine learning in UK financial services , in 2024 Q2. Responses to the survey will allow the PRA and FCA to further explore how best to address the issues/risks posed by AI/ML in a way that is aligned with the PRA’s and FCA’s statutory objectives. The PRA will also continue to monitor firms’ compliance of its expectations, as set out in SS1/23 , and will seek to explore further updates where necessary.

International policy on digitalisation and managing associated risks

The PRA aims to be at the forefront of identifying and responding to opportunities and risks faced by PRA-authorised firms as they seek to use technology in innovative ways to attract and retain customers, reduce costs, and increase efficiencies.

External context and business risk are important facets of the PRA’s approach to supervision. Developments are monitored, with specialist input from the Bank’s Fintech Hub , to identify risks such as fragmentation of the value chain, novel outsourcing arrangements, and concentration risks across and within firms.

In order to take a responsive and responsibly open approach, the PRA will continue to consider policy proposals to respond to digitalisation and adapt its supervisory approach accordingly. Through the New Bank Start-up and Insurer Start-Up Units, the PRA will continue to engage with applicant firms that have novel uses of technology. The PRA will continue to work closely with domestic and international partners, and through engagement with industry and stakeholders, to take a pro-active approach to digital innovations within the financial sector.

The PRA is a significant contributor to discussions on digitalisation in international standard-setting fora, and will continue to support the BCBS’s work on the developments in the digitalisation of finance and the implications for banks and supervisors . The PRA will also continue be an active part of the IAIS Fintech Forum.

Digital money and innovation

In February 2023, HMT published a consultation and Call for Evidence on the future financial services regulatory regime for cryptoassets , focused on enhancing market integrity, custody requirements, and transparency. The consultation closed in October 2023 with the publication of an update on the government’s plans for its legislative approach to the regulation of stablecoins. HMT confirmed that tokenised deposits would continue to be regulated as deposits. The PRA will continue to work with HMT and the FCA to ensure that the regulatory perimeter and the boundaries between different activities are clearly and robustly delineated.

In November 2023, the Bank, PRA, and FCA published a cross-authority package on innovations in money and payments . As part of this, the PRA published a Dear CEO letter to provide clarity on the PRA’s expectation on how deposit-takers should address risks arising from the emergence of multiple forms of digital money and money-like instruments. footnote [11] It published the letter alongside the Bank’s proposed regime for systemic payment systems using stablecoins and related service providers , and the FCA’s proposed regime for stablecoin issuers, custodians, and the use of stablecoins as a means of payment. A roadmap paper was also published to explain how these regimes fit together.

The PRA will continue to contribute to the Bank’s broader work on innovation in money and payments, which in 2024 will include work on wholesale payments and settlements – and their interaction with retail payments.

In 2024, the PRA will continue to work within the global regulatory community to finalise a set of amendments made to the international standard on the treatment of banks’ cryptoassets exposures. These amendments were published for consultation by the Basel Committee in December 2023, following the finalisation of the standard in 2022.

Once the amendments are finalised, the PRA will implement the standard within the UK, following the PRA’s policymaking process. Alongside this, the PRA will continue to engage with international partners, including the BCBS, to assess bank-related developments in cryptoassets markets, the role of banks as issuers of stablecoins and tokenised deposits, custodians of cryptoassets, and potential channels of interconnections with the cryptoassets ecosystem.

The PRA advances its primary and secondary objectives by making rules that support competitive and dynamic markets in the sectors that it regulates. The PRA will go further in developing proportionate and efficient prudential requirements, thereby reducing the burden on firms where appropriate, and pursuing its secondary objectives. The PRA also remains committed to playing an active role in international standard-setting, given the important role of global rules in safeguarding the UK’s open economy through ensuring safe financial markets.

Regulatory change – embedding the PRA’s approach to rule-making

FSMA 2023 has significantly changed the powers and responsibilities of the PRA, allowing it to ensure the UK financial services framework is fit for the future, reflecting the UK’s position outside of the EU. FSMA 2023 also introduces enhanced objectives and accountability requirements that support the PRA’s transparency and accountability to Parliament.

FSMA 2023 provides a framework to repeal and replace assimilated law relating to financial services. Most technical rules will now be made by operationally independent regulators within a framework set by Parliament, enabling the PRA to deliver policies better suited to the UK financial sector. The PRA’s responsibility, in cooperation with HMT and FCA, is to ensure that the new rules are made in accordance with the PRA’s remit and statutory objectives, including the new secondary competitiveness and growth objective.

The PRA has worked closely with HMT and FCA on the sequencing of the repeal and the replacement of the files of assimilated law. Once the replacement material is in PRA rules, the PRA will have the power to evaluate these rules, amend them if needed, and/or create new rules when required.

The PRA has already made good progress with respect to the files that HMT has prioritised into the first two ‘tranches’, including key files such as Solvency II, Securitisation, CRR, among others. The PRA has consulted on significant parts of tranches 1 and 2 in 2023 and will continue this work throughout 2024 and 2025. The completion of the repeal and replacement of Solvency II and Securities Regulation files is expected by the end of 2024, and the last of the PRA's tranche 1 and 2 files is planned for implementation in 2026. Work on the remaining files that were not included in tranches 1 and 2 will begin in 2024.

The PRA is consulting its stakeholders as it develops its approach to policymaking in light of the new requirements. In December 2023, the PRA published CP27/23 , setting out the proposed approach to policy under the regulatory framework as amended by FSMA 2023, and building on the previously published DP4/22 – The Prudential Regulation Authority’s future approach to policy . CP27/23 outlines the PRA's planned approach to maintain robust prudential standards, which are the cornerstone of UK financial stability and long-term economic growth, while addressing risks and opportunities in a responsive manner, appropriately adapted to the circumstances of the UK. Responses to CP27/23 will inform the PRA’s finalised approach document to be published in 2024 H2.

Secondary competitiveness and growth objective (SCGO)

FSMA 2023 gave the PRA a new secondary objective which requires the PRA to act, so far as reasonably possible, to facilitate the UK economy’s international competitiveness (including in particular the financial services sector through the contribution of PRA-authorised persons) and its growth over the medium to long term, subject to alignment with international standards. FSMA 2023 maintained the PRA’s other objectives without change.

In addition to specific policy measures, the PRA has taken practical steps to embed the SCGO in its operations, including through internal changes, and the launch of a research programme to deepen its understanding of the ways prudential requirements can affect the international competitiveness and growth of the UK economy.

The PRA will continue to look for ways in which it can facilitate the UK’s competitiveness and growth when discharging its general functions. The approach focuses on strengthening the three regulatory foundations that were set out in CP27/23, specifically:

• Maintaining trust among domestic and foreign firms in the PRA and UK prudential framework via a range of policies, including those that promote strong prudential standards appropriately calibrated for the UK, and the alignment of said policies with international standards.
• Adopting effective regulatory processes and engagement, including providing for the efficient handling of regulatory processes, such as authorisations and data collections, as well as facilitating the accessibility of the PRA Rulebook to reduce the operating costs of firms.
• Taking a responsive and responsibly open approach to UK risks and opportunities, including making rules that account more effectively for the needs of the UK. This approach means responding faster to emerging risks and opportunities in the UK financial sector, for example, by using regulatory tools to support innovation safely. To this end, in 2024, the PRA will hold a pilot roundtable to gather stakeholders’ views on how the PRA can help to reduce the barriers to innovation that the industry faces.

The policy initiatives discussed in the rest of this section provide examples of how the PRA will advance its secondary objectives in 2024/25.

Furthermore, the Bank’s Independent Evaluation Office (IEO) is evaluating the PRA’s approach to its new secondary objective. Both the outcome of the IEO’s evaluation and the PRA’s response to it will be included in the PRA’s – ‘Secondary Objectives Report’ to be published alongside the PRA’s Annual Report 2023/24. The Secondary Objectives Report will also give an overview of all the PRA’s policy initiatives that have advanced the SCO and the SCGO .

Strong and Simple framework

In 2021, the PRA published FS1/21 – A strong and simple prudential framework for non-systemic banks and building societies , that set out a vision to simplify prudential requirements for smaller, domestic-focused banks and building societies, while maintaining those firms’ resilience.

As outlined in the PRA 2023/24 Business Plan , the PRA will continue its planned programme of work on creating a simpler but equally resilient prudential framework for smaller, domestically focused banks and building societies, known as the Strong and Simple framework. This framework is designed to maintain the financial resilience of banks and building societies operating in the UK, while reducing costs associated with prudential requirements for non-systemic banks and building societies. In 2023/24, the PRA published its final policy on scope criteria and simplified liquidity and disclosure requirements for SDDTs in PS15/23.

In December 2023, the PRA published PS16/23 – The Strong and Simple Framework: Scope criteria, liquidity and disclosure requirements , which finalises the scope of the framework. The PS builds on the first layer of the Strong and Simple framework, which focused on the smallest firms and is known as the SDDT regime. The overall aim of the framework is to maintain the financial resilience of banks and building societies operating in the UK, while addressing the ‘complexity problem,’ under which the same prudential requirements are applied to all firms, regardless of size, even though the costs of interpreting and operationalising those requirements are higher for small firms, relative to the associated public policy benefits.

In 2024/25, the PRA will move further towards finalising and implementing the Strong and Simple prudential framework for SDDTs. A key step will be to implement the simplifications to liquidity requirements that were introduced in Phase 1. The PRA will also finalise the rules for the Interim Capital Regime, which will allow firms eligible to be SDDTs to stay under capital rules equivalent to those currently in place until the simplified capital regime for SDDTs is implemented. The PRA plans to consult on a simplified capital regime for SDDTs in 2024 Q2.

Insurance Special Purpose Vehicles regime

In 2017, the PRA introduced a framework for the authorisation and supervision of ISPVs to provide guidance for parties wishing to obtain authorisation as an ISPV, or for insurers and reinsurers seeking to use UK ISPVs as risk mitigation in accordance with Solvency II.

The UK ISPV regime has not seen as much activity as originally envisaged. While new issuances of insurance-linked securitisations (ILS) transactions in the UK over the last two years have exceeded USD400 million, there are steps to be taken which can improve the regime and increase its usage.

The PRA has been in discussion with industry on this matter with the aim of understanding the key areas of the regime in which market participants would recommend changes.

The PRA expects to consult on a package of reforms to the UK ISPV regime. These reforms are intended to:

• allow a wider range of transaction structures in the UK regime;
• improve the speed of the application process, and thereby also reduce costs for applicants; and
• clarify the PRA’s expectations of UK insurers who cede risks to ISPVs, wherever they are established.

Remuneration reforms

The PRA’s remuneration rules ensure that key decision-makers and material risk-takers at PRA-regulated firms have the right incentives and can be held accountable. In 2023, following consultation, the PRA removed the bonus cap and made changes to its rules to enhance proportionality for small firms .

In advancing its primary and secondary objectives, the PRA is considering further changes to the remuneration regime that is better suited to the UK’s financial sector, while maintaining the remuneration regime’s overall structure and objectives, which are based on internationally agreed FSB principles and standards . The PRA intends to consult on any changes in 2024 H2.

Implementing changes to the Senior Managers & Certification Regime (SM&CR)

In March 2023, the PRA and FCA jointly published DP1/23 – Review of the Senior Managers and Certification Regime (SM&CR) , with a particular focus on gathering views about the regime’s effectiveness, scope, and proportionality. HMT in parallel launched a Call for Evidence covering the legislative aspects of the SM&CR. The period for sending responses to the discussion paper ended on 1 June 2023.

The PRA received over 90 responses relevant to its work as a prudential regulator, reflecting the significant level of stakeholder interest in the regime. The PRA, working closely with the FCA and HMT, is considering potential policy options for reform in response to the comments received and intends to consult on proposed changes to the regime in 2024 H1.

Complete the establishment of the Cost Benefit Analysis (CBA) Panel

The PRA is continuing to make progress under the new framework provided by FSMA 2023, setting out CBA as an integral part of developing the best possible policy approach, and the results will help shape the PRA’s policymaking. CBAs inform and refine the policy approach to identified issues, helping to design approaches that offer the greatest benefits.

One of the key elements of enhancing the PRA’s scrutiny and accountability mechanisms relates to its approach to CBA and the establishment of a new CBA panel. The role of the CBA Panel is to support increased transparency and scrutiny of the PRA’s policymaking by providing regular, independent input into the PRA’s CBAs relating to PRA rules and the PRA’s statement of policy in relation to CBAs . The Panel will review how the PRA is performing more generally in carrying out its duties with regard to CBA and may provide recommendations to the PRA.

The PRA has completed an open, competitive, and rigorous recruitment process for identifying and appointing a diverse range of expert individuals to constitute the CBA Panel. The PRA will finalise the set-up of the Panel and then start consulting it on the PRA’s statement of policy in relation to CBAs and on the preparation of CBAs. The appointments, including that of the Chair, will be announced in due course.

In 2024, the PRA will consult on its CBA framework, which will set out how the PRA intends to continue to conduct a robust CBA and how it engages with the CBA panel.

PRA Rulebook

The new regulatory framework set out in FSMA 2023 enables the PRA to develop a more coherent and easily accessible Rulebook. The aim is to improve the efficiency and accessibility of the PRA Rulebook by reducing the number of policy document formats currently in use to three: rules, supervisory statements, and statements of policy. In order to achieve this, the PRA’s specialist teams will begin the process of reviewing the EU Guidelines, European Supervisory Authorities (ESA) Q&As, and UK technical standards (UKTS) that are relevant to PRA rules, to determine what should be incorporated into those rules or related supervisory statements and statements of policy. Once the review of these documents is completed, references to the EU Guidelines, ESA Q&As, and UKTSs will be removed.

The PRA is also looking at grouping the elements in the Rulebook to make it easier for users to access relevant information. To support usability and clarity, the PRA will take a consistent approach to the structure of, and language in its policies.

The speed at which the PRA will achieve many of its ambitions for the Rulebook will partly depend on the Government’s approach to the repeal of relevant assimilated law and its replacement in PRA rules and other policy materials. However, the PRA will move ahead with the proposed reforms as quickly as possible to help users more easily navigate the new regulatory landscape.

Banking Data Review

The Banking Data Review BDR, launched in 2023-24, will be delivered as an integral part of the Transforming Data Collection TDC programme. The work will enable the PRA’s banking regulatory data collections to be better aligned with the day-to-day needs of supervisors, ensure the PRA has good-quality data to carry out its new policymaking responsibilities in line with the post-Brexit regulatory framework, and reduce burdens on firms by better integrating and streamlining data collections.

The PRA will consult on the first of three phases of reforms under the BDR in 2024 H2. The consultation will focus on streamlining of the existing regulatory reporting estate, removing reporting templates that may no longer be needed or which contain information that can be gathered at lower cost elsewhere, reviewing collections of counterparty credit information, and incorporating lessons from recent market events.

In parallel, the PRA will continue to work on plans for future phases of reform, focused on credit risk in the second phase, and with all remaining areas covered in a third phase. Engagement with industry participants will be done under the newly appointed TDC Advisory Board, which will be responsible for setting industry working groups on key topics relating to TDC. The TDC’s main industry forum in this area is the Data Standards Committee (DSC), which led the work on the recommendations underpinning the jointly published response by the Bank and the FCA, entitled Transforming data collection – Data Standards Review with recommendations and Bank of England and FCA response . A further working group is the BDR Industry Consultative Forum that is open to all PRA-regulated banks.

Supporting and authorising new market entrants via new ‘mobilisation’ regime

The PRA will continue to support potential market entrants in navigating the authorisation process. This includes providing clear online guidance and industry engagement to build awareness of expectations and seek feedback on firms’ experience of the process. The PRA offers potential applicants the opportunity to meet with staff through a structured pre-application stage, allowing firms to iterate and develop their proposition to support a better-quality application.

The PRA will continue to make use of the mobilisation stage for newly authorised banks, where appropriate, to allow them to operate with restrictions while they complete their set-up before starting to trade fully.

In line with PS2/24 – Review of Solvency II: Adapting to the UK insurance market , the PRA will introduce a new ‘mobilisation’ regime to facilitate entry and expansion for new insurers from 31 December 2024, similar to the mobilisation stage for new banks. Mobilisation will help to facilitate competition, and the international competitiveness and growth of the UK insurance sector, with the aim of benefiting firms who are contemplating applying for authorisation as an insurer in the UK now or in the future.

Newly authorised insurers in mobilisation could be offered the option of using a set period of extra time to build up systems and resources while operating with business restrictions, proportionate regulatory requirements, and lower minimum capital requirements. New insurers could be suitable for mobilisation when they have a shortlist of activities to complete before they can meet full regulatory requirements.

Ease of exit

Improving how firms can leave regulated markets in an orderly way is a vital corollary to greater ease of entry into those markets. It enables a dynamic and competitive market which entrants can join and leave with minimal impact on the wider market and the PRA’s statutory objectives. The PRA has published the first of two planned policy in this topic, (eg, PS5/24 – Solvent exit planning for non-systemic banks and building societies ). A further PS on solvent exit planning for insurers is expected in 2024 H2, following the completion of the market consultation initiated by CP2/24 – Solvent exit planning for insurers . Both of these form part of the PRA’s strategic focus on increasing the ease of exit.

Ring-fencing regime

The Bank and PRA continue to work closely with HMT on implementing the recommendations made in March 2022 by the Independent Review of Ring-fencing and Proprietary Trading , led by Sir Keith Skeoch. On 28 September 2023, both HMT and the PRA published consultations with the aim of giving effect to recommendations of that review.

HMT consulted on removing the blanket restriction which prevents ring-fenced bodies (RFBs) operating in countries outside the EEA. The PRA consulted on introducing a new rule and updating SS8/16 – Ring-fenced bodies (RFBs) , to align with HMT’s proposed legislative changes. These changes aim to implement certain safeguards to ensure that RFBs are not exposed to material risks through the business of their overseas subsidiaries or branches. The PRA will publish its policy and a rule Instrument once the legislative changes are brought into force. Simultaneously, the PRA will update SS8/16 to reflect the changes.

FSMA requires the PRA to conduct a review of its ring-fencing rules and provide a report to HMT every five years. The first such review was completed on 12 December 2023 and the resulting report was laid before Parliament on 25 January 2024 and published on the Bank’s website.

The PRA intends to consult on potential changes to the ring-fencing regime identified by the Rule Review once a fuller exploration of costs and benefits has been undertaken. The Bank and PRA will continue to support HMT with technical advice to enable HMT to finalise its legislative changes, and to consider responses to its Call for Evidence on longer-term reforms.

Effective authorisation processes

The PRA handles over 1,800 regulatory transactions a year, ranging from new firm authorisations to variations of permission for existing firms and cancellations of permission for firms leaving the market. Over the coming year, the PRA will continue to handle these transactions in more streamlined, efficient, transparent, and accessible way while maintaining strong risk controls to ensure the UK’s success as a global financial centre.

In parallel to consulting on reforms to the SM&CR, the PRA will continue to enhance and streamline internal processes on SM&CR applications and other transactions to drive further improvements in operational effectiveness, as measured through the quarterly publication of metrics on timeliness of decisions. This will include close collaboration with the FCA to ensure an efficient and coordinated review of cases, as well as improvements to case handling and recording technology platforms. The PRA will extend existing industry engagement on New Bank Start-ups to also cover new insurers and SM&CR applications in order to promote transparency and spread best practice in support of efficient case handling. In addition, the Wholesale Insurance Accelerated Authorisation Pathway, developed jointly by the PRA and FCA, will continue to provide an accelerated route for the authorisation of a sub-set of London market wholesale applicants.

The PRA’s operation within the Bank plays a critical role in maintaining the stability and integrity of the UK’s financial system. In pursuit of its objectives and work programme, the PRA ensures that its regulatory framework is inclusive, considering the diverse landscape of financial institutions. It aims to create a level playing field, while recognising and planning for the potential impact of the changes in the environment in which we are operating.

In line with its mission, the PRA continually adapts regulations to address emerging risks and opportunities, fostering inclusivity to enhance trust, transparency, and accountability in the financial sector. As a prudential regulator, the PRA maintains and strives for operational efficiency in its regulatory processes, technology, and its workforce. This involves streamlining procedures, driving inclusive recruitment, and leveraging technology to enhance effectiveness – noting that efficient regulation benefits both regulated entities and the broader economy by reducing unnecessary burdens and facilitating smoother interactions between financial institutions and the regulator.

Data and technology

The PRA will continue its programme of work to strengthen and transform its data-related capabilities. The PRA will also continue to play a leading role in international collaboration on the regulatory use of data and technology, liaising closely with other regulators, central banks, academic institutions, and industry. The PRA intends to run a multi-day innovation-focused event for PRA colleagues to support learning and increase awareness about the impact of technological advances and initiatives across the financial sector.

Transforming Data Collection by building on digital regulatory reporting

The PRA will continue to work towards achieving the objectives of the TDC programme for 2026:

• Goal 1: the PRA has the data and tools it needs to rapidly identify and probe emerging issues, risk, and policy questions, including integration into a single customisable supervisory dashboard; and
• Goal 2: the PRA only collects data that it needs from firms, thereby reducing unnecessary burdens on firms.

Regarding Goal 1, the PRA will continue to improve existing and deliver new priority data visualisation and analysis tools to support supervision, covering financial and operational data for PRA-regulated firms. The PRA will also make use of speech-to-text technology to support day-to-day work for staff, and to contribute to the Bank’s wider work on the appropriate use of artificial intelligence to support its objectives, including large third-party language models. This will be underpinned by ongoing support for PRA staff undertaking renewed digital skills training alongside individual and group coaching for some staff cohorts, and planning for those programmes in future years.

Regarding Goal 2, the PRA will continue to work with the FCA and the wider Bank on the TDC programme , which envisions that ‘regulators are able to get the data they need to fulfil their mission at the lowest possible cost to industry’ through improvements to the integration of reporting, reporting instructions, and data standards. Over the coming years, TDC therefore aims to deliver a new target operating model for all of the Bank’s regulatory, statistical, and stress-testing data collections.

Diversity, equity and inclusion at the PRA

The PRA continues to take action to strengthen its culture and working environment. The Bank’s Court review into ethnic diversity and inclusion reported its findings in July 2021. The PRA, alongside the rest of the Bank, is implementing the recommendations of this review and has made considerable progress in terms of embedding inclusive recruitment, investing in talent development, and advancing a psychologically safe culture to promote employees’ ability to voice their opinions via the ‘speak my mind’ initiative. There is also increased accountability for senior leaders to advance a diverse and inclusive Bank.

The PRA recognises the importance of all staff feeling valued and being able to thrive. Key focus areas for 2024/25 include progressing initiatives to improve psychological safety, ethnic and gender representation, and disability disclosure. The PRA continues to benefit from the Bank’s excellent employee networks that cater to diverse groups such as disability, LGBTQ+, social mobility, gender, age, carers, different ethnicities, and many more.

PRA Agenda for Research

The PRA plans to build on its research efforts in 2024/25, including through improving central coordination and capacity-building projects.

Research priorities are captured in the PRA Research agenda 2023+ below (Table 1). The PRA will continue to deliver on those, while making sure that a timely delivery of high-quality research, expertise, and critical evaluation is given to PRC, FPC, and other senior decision-making activities. These deliverables are captured in the research metrics and the PRA Research Annual. The metrics track the quantity, quality, and impact of the PRA’s research, while the PRA Research Annual provides further details on how timely and effective the research advisory (inside and outside the institution) has been. New for this business year is that the PRA will additionally produce impact cases, with the purpose of tracking the lifespan of key research projects and evaluating their total policy/social impact.

To ensure that the organisation has the right capacity and skills, the PRA will initiate new capacity-building projects on models, tools, and data, while reinforcing external collaborations on those. It will also continue efforts to disseminate this work and foster strategic cooperations with research departments at other central banks, regulatory authorities, research institutes, or universities.

Table 1: PRA Research agenda 2023+

Risks to delivery of business plan.

Operating in a complex and fast-moving environment gives rise to risks to the delivery of this business plan. The PRA monitors, manages, actively mitigates (where possible), and reports these risks to the PRC and relevant Bank fora on a regular basis.

Over the course of 2023/24, attrition levels reduced and there was an improvement in recruitment into key roles. Looking ahead to 2024/25, headcount required to deliver this Business Plan is forecast to remain broadly flat.

The PRA will continue to impose discipline on how it deploys its budget to ensure resources are allocated appropriately. The PRA will also need to reprioritise during the year in response to changes in the external environment, as it routinely does. The PRA will continue to focus on managing operational risks and strengthening horizon-scanning capabilities so that it can respond quickly to changes in risk and drive decisions on prioritisation, business planning, and resourcing.

Having access to the right technology and data remains a key area of focus in 2024/25 as part of a multi-year investment across the PRA and the Bank to ensure that the PRA’s technology capabilities support its strategic priorities. This focus will take account of developments in regulatory technology, reduce inefficiencies, and leverage the benefits of being a regulator within the UK’s central bank. There is a risk that the PRA may be unable to deliver its intended technology ambition given the congested change agenda across the Bank. This challenge is being managed through careful prioritisation and scoping of key projects, including delaying some lower-priority activities.

Dependencies

Given the interconnected nature of the global financial system, dependencies on external parties, such as the FCA, HMT, and overseas regulators, could present a risk for the PRA. Policy development, authorisation processes, and supervision activities are contingent on maintaining relationships and co-operation with these parties. The PRA fosters its domestic relationships to ensure effective regulation and supervision across the UK financial sector. The PRA also works closely with international regulators to address cross-border risks for firms operating internationally. The PRA continues to foster these important relationships at all levels of the organisation through several channels, including international committees, supervisory colleges, joint reviews, information-sharing, and joint publications.

PRA Budget 2024/25

The PRA’s provisional budget for 2024/25, which is subject to finalisation of pension costs and year-end adjustments, is estimated at £353.0 million. This is an increase of £34.0 million (11%) on the 2023/24 budget. To reduce the impact to firms in 2024/25, the PRA has taken two measures, as set out in CP4/24 , to limit the increase in fees paid by firms to 7%. This increase follows a 1% reduction to fees in 2023/24 compared with 2022/23.

The PRA is constraining the increase in its own direct costs to 2%, which means a real-terms cut to the budget that will be managed by increasing efficiency in the PRA’s supervisory approach, end-to-end policymaking process, and operations. Alongside this, the PRA needs to fund inflation-driven increases in support services provided to the PRA by the Bank and the PRA’s share of tackling obsolescence in the Bank’s technology estate on which the PRA relies.

Budgeted headcount is forecast to remain broadly flat for 2024/25 ending the year at 1,541 (this compares closely to the actual year-end headcount position for 2023/24 of 1,537). The budgeted headcount reflects the PRA’s need to invest in key areas, including increasing the capacity to approve the efficiency of the IRB model review process, the implementation and supervision of CTPs, investment in the BDR, and implementing lessons learned from the failure of SVB and CS.

Details on how the PRA proposes to fund its budget can be found in CP4/24 – Regulated fees and levies: Rates proposals 2024/25 . It includes proposals for allocating costs of the PRA’s 2024/25 ongoing regulatory activities across PRA fee payers.

Abbreviations

ACS – Annual Cyclical Scenario

AI/ML – Artificial Intelligence/Machine Learning

AoC – Analysis of Change

Bank – Bank of England

BCBS – Basel Committee on Banking Supervision

BDR – Banking Data Review

CBA – Cost Benefit Analysis

CEG – Cyber Expert Group

CEO – Chief Executive Officer

CMORG – Cross Market Operational Resilience Group

CP – Consultation Paper

CRR – Capital Requirements Regulation

CTP – Critical Third Party

DEI – Diversity, equity, and inclusion

DP – Discussion paper

DSC – Data Standards Committee

D&I – Diversity and inclusion

EAS – Early Account Scheme

EU – European Union

ESA – European Securities and Markets Authority

ESCG – European Systemic Cyber group

FCA – Financial Conduct Authority

FinTech – Financial Technology

FMI – Financial Market Intermediary

FMIs – Financial Market Infrastructures

FPC – Financial Policy Committee

FRF – Future Regulatory Framework

FSB – Financial Stability Board

FSMA – Financial Services and Markets Act 2000 (as amended)

HMT – His Majesty's Treasury

IAIS – International Association of Insurance Supervisors

ICS – Insurance Capital Standard

ILS – insurance-linked securitisations

IRB – internal ratings-based

IRRBB – interest rate risk in the banking book

ISPV – Insurance special purpose vehicle

L-SREPs – Liquidity Supervisory Review and Evaluation Processes

MA – Matching adjustment

MALIR – Matching Adjustment Asset and Liability Information Return

MDA - Maximum distributable amount

MoU – Memorandum of Understanding

MRM – Model Risk Management

NBFI – Non-Bank Financial Institution

PMA – Post Model Adjustment

PRA – Prudential Regulation Authority

PRC – Prudential Regulation Committee

PS – Policy statement

QMC – Quarterly Model Change

RFB – Ring-fenced bodies

RWA – Risk-weighted asset

SCGO – Secondary Competitiveness and Growth Objective

SCO – Secondary Competition Objective

SDDT – Small domestic deposit takers

SMCR – Senior Managers and Certification Regime

SME – Small and medium-sized enterprise

SMF – Senior management function

SS – Supervisory statement

SVB – Silicon Valley Bank

SWES – System-wide exploratory scenario

TDC – Transforming Data Collection

TFSME – Term Funding Scheme with additional incentives for SMEs

TPR – The Pension Regulator

UKTS – UK Technical Standards

Contacting the Bank of England and the PRA

Please send any enquiries related to this publication to [email protected] .

In PS15/23, the PRA set out its rationale to rename Simpler-regime firms to Small Domestic Deposit Takers (SDDTs), and Simpler-regime consolidation entities to SDDT consolidation entities. To avoid confusion, throughout the rest of this document, the PRA will refer to SDDTs, SDDT consolidation entities, the Small Domestic Deposit Takers regime or SDDT regime, and SDDT criteria, rather than Simpler-regime firm, Simpler-regime consolidation entities, simpler regime, and Simpler-regime criteria, even when referring to past consultations.

A CTP is an entity that will be designated by HMT by a regulation made in exercise of the power in section 312L(1) of 2000, as amended by the FSMA 2023.

As at 1 January 2024.

Strictly speaking, DIFs do not accept deposits and are included under the category of deposit-takers for presentational purposes only.

Section 2E of FSMA.

SS11/13 – Internal Ratings Based (IRB) approaches .

As set out in the 2024 priorities letter on UK deposit takers .

SMFs are a type of controlled function carried out by ‘approved persons’, ie individuals who have to be approved. SMFs are the most senior people in a firm with the greatest potential to cause harm or impact upon market integrity.

Managing climate-related financial risk – thematic feedback from the PRA’s review of firms’ SS3/19 plans and clarifications of expectations and Thematic feedback on the PRA’s supervision of climate-related financial risk and the Bank of England’s Climate Biennial Exploratory Scenario exercise .

Thematic feedback from the 2021/2022 round of written auditor reporting and Thematic feedback from the 2022/2023 round of written auditor reporting.

‘Digital money’ refers to claims on deposit-takers or other financial institutions, which exist only in electronic form and whose value is preserved through a combination of strict regulation and issuers’ access to central bank deposits. ‘Digital money-like instruments’ refers to other assets that exist only in electronic form and are used for payments. Some of these are regulated to support a stable value, but their issuers do not have access to central bank deposits and are subject to lighter regulation.

Back to top

• Skip to main content
• Keyboard shortcuts for audio player

NPR defends its journalism after senior editor says it has lost the public's trust

David Folkenflik

NPR is defending its journalism and integrity after a senior editor wrote an essay accusing it of losing the public's trust. Saul Loeb/AFP via Getty Images hide caption

NPR is defending its journalism and integrity after a senior editor wrote an essay accusing it of losing the public's trust.

NPR's top news executive defended its journalism and its commitment to reflecting a diverse array of views on Tuesday after a senior NPR editor wrote a broad critique of how the network has covered some of the most important stories of the age.

"An open-minded spirit no longer exists within NPR, and now, predictably, we don't have an audience that reflects America," writes Uri Berliner.

A strategic emphasis on diversity and inclusion on the basis of race, ethnicity and sexual orientation, promoted by NPR's former CEO, John Lansing, has fed "the absence of viewpoint diversity," Berliner writes.

NPR's chief news executive, Edith Chapin, wrote in a memo to staff Tuesday afternoon that she and the news leadership team strongly reject Berliner's assessment.

"We're proud to stand behind the exceptional work that our desks and shows do to cover a wide range of challenging stories," she wrote. "We believe that inclusion — among our staff, with our sourcing, and in our overall coverage — is critical to telling the nuanced stories of this country and our world."

NPR names tech executive Katherine Maher to lead in turbulent era

She added, "None of our work is above scrutiny or critique. We must have vigorous discussions in the newsroom about how we serve the public as a whole."

A spokesperson for NPR said Chapin, who also serves as the network's chief content officer, would have no further comment.

Praised by NPR's critics

Berliner is a senior editor on NPR's Business Desk. (Disclosure: I, too, am part of the Business Desk, and Berliner has edited many of my past stories. He did not see any version of this article or participate in its preparation before it was posted publicly.)

Berliner's essay , titled "I've Been at NPR for 25 years. Here's How We Lost America's Trust," was published by The Free Press, a website that has welcomed journalists who have concluded that mainstream news outlets have become reflexively liberal.

Berliner writes that as a Subaru-driving, Sarah Lawrence College graduate who "was raised by a lesbian peace activist mother ," he fits the mold of a loyal NPR fan.

Yet Berliner says NPR's news coverage has fallen short on some of the most controversial stories of recent years, from the question of whether former President Donald Trump colluded with Russia in the 2016 election, to the origins of the virus that causes COVID-19, to the significance and provenance of emails leaked from a laptop owned by Hunter Biden weeks before the 2020 election. In addition, he blasted NPR's coverage of the Israel-Hamas conflict.

On each of these stories, Berliner asserts, NPR has suffered from groupthink due to too little diversity of viewpoints in the newsroom.

The essay ricocheted Tuesday around conservative media , with some labeling Berliner a whistleblower . Others picked it up on social media, including Elon Musk, who has lambasted NPR for leaving his social media site, X. (Musk emailed another NPR reporter a link to Berliner's article with a gibe that the reporter was a "quisling" — a World War II reference to someone who collaborates with the enemy.)

When asked for further comment late Tuesday, Berliner declined, saying the essay spoke for itself.

The arguments he raises — and counters — have percolated across U.S. newsrooms in recent years. The #MeToo sexual harassment scandals of 2016 and 2017 forced newsrooms to listen to and heed more junior colleagues. The social justice movement prompted by the killing of George Floyd in 2020 inspired a reckoning in many places. Newsroom leaders often appeared to stand on shaky ground.

Leaders at many newsrooms, including top editors at The New York Times and the Los Angeles Times , lost their jobs. Legendary Washington Post Executive Editor Martin Baron wrote in his memoir that he feared his bonds with the staff were "frayed beyond repair," especially over the degree of self-expression his journalists expected to exert on social media, before he decided to step down in early 2021.

Since then, Baron and others — including leaders of some of these newsrooms — have suggested that the pendulum has swung too far.

Author Interviews

Legendary editor marty baron describes his 'collision of power' with trump and bezos.

New York Times publisher A.G. Sulzberger warned last year against journalists embracing a stance of what he calls "one-side-ism": "where journalists are demonstrating that they're on the side of the righteous."

"I really think that that can create blind spots and echo chambers," he said.

Internal arguments at The Times over the strength of its reporting on accusations that Hamas engaged in sexual assaults as part of a strategy for its Oct. 7 attack on Israel erupted publicly . The paper conducted an investigation to determine the source of a leak over a planned episode of the paper's podcast The Daily on the subject, which months later has not been released. The newsroom guild accused the paper of "targeted interrogation" of journalists of Middle Eastern descent.

Heated pushback in NPR's newsroom

Given Berliner's account of private conversations, several NPR journalists question whether they can now trust him with unguarded assessments about stories in real time. Others express frustration that he had not sought out comment in advance of publication. Berliner acknowledged to me that for this story, he did not seek NPR's approval to publish the piece, nor did he give the network advance notice.

Some of Berliner's NPR colleagues are responding heatedly. Fernando Alfonso, a senior supervising editor for digital news, wrote that he wholeheartedly rejected Berliner's critique of the coverage of the Israel-Hamas conflict, for which NPR's journalists, like their peers, periodically put themselves at risk.

Alfonso also took issue with Berliner's concern over the focus on diversity at NPR.

"As a person of color who has often worked in newsrooms with little to no people who look like me, the efforts NPR has made to diversify its workforce and its sources are unique and appropriate given the news industry's long-standing lack of diversity," Alfonso says. "These efforts should be celebrated and not denigrated as Uri has done."

After this story was first published, Berliner contested Alfonso's characterization, saying his criticism of NPR is about the lack of diversity of viewpoints, not its diversity itself.

"I never criticized NPR's priority of achieving a more diverse workforce in terms of race, ethnicity and sexual orientation. I have not 'denigrated' NPR's newsroom diversity goals," Berliner said. "That's wrong."

Questions of diversity

Under former CEO John Lansing, NPR made increasing diversity, both of its staff and its audience, its "North Star" mission. Berliner says in the essay that NPR failed to consider broader diversity of viewpoint, noting, "In D.C., where NPR is headquartered and many of us live, I found 87 registered Democrats working in editorial positions and zero Republicans."

Berliner cited audience estimates that suggested a concurrent falloff in listening by Republicans. (The number of people listening to NPR broadcasts and terrestrial radio broadly has declined since the start of the pandemic.)

Former NPR vice president for news and ombudsman Jeffrey Dvorkin tweeted , "I know Uri. He's not wrong."

Others questioned Berliner's logic. "This probably gets causality somewhat backward," tweeted Semafor Washington editor Jordan Weissmann . "I'd guess that a lot of NPR listeners who voted for [Mitt] Romney have changed how they identify politically."

Similarly, Nieman Lab founder Joshua Benton suggested the rise of Trump alienated many NPR-appreciating Republicans from the GOP.

In recent years, NPR has greatly enhanced the percentage of people of color in its workforce and its executive ranks. Four out of 10 staffers are people of color; nearly half of NPR's leadership team identifies as Black, Asian or Latino.

"The philosophy is: Do you want to serve all of America and make sure it sounds like all of America, or not?" Lansing, who stepped down last month, says in response to Berliner's piece. "I'd welcome the argument against that."

"On radio, we were really lagging in our representation of an audience that makes us look like what America looks like today," Lansing says. The U.S. looks and sounds a lot different than it did in 1971, when NPR's first show was broadcast, Lansing says.

A network spokesperson says new NPR CEO Katherine Maher supports Chapin and her response to Berliner's critique.

The spokesperson says that Maher "believes that it's a healthy thing for a public service newsroom to engage in rigorous consideration of the needs of our audiences, including where we serve our mission well and where we can serve it better."

Disclosure: This story was reported and written by NPR Media Correspondent David Folkenflik and edited by Deputy Business Editor Emily Kopp and Managing Editor Gerry Holmes. Under NPR's protocol for reporting on itself, no NPR corporate official or news executive reviewed this story before it was posted publicly.

NASA Seeks Feedback on Space Technology Needs; Kurt Vogel Quoted

NASA’s Space Technology Mission Directorate is soliciting feedback from the U.S. aerospace community on nearly 190 space technology shortfalls or needs for future space exploration and science missions as it works to refine its strategy for prioritizing tech development investments.

“STMD is developing many critical technologies, but shifting to a more open and collaborative approach allows us to better prioritize our efforts and align with key stakeholder needs while ensuring we all get the most bang out of our investments,” Kurt Vogel , associate administrator for space technology at NASA Headquarters in Washington, said in a statement published Tuesday.

The space agency is seeking feedback on critical tech shortfalls, including cryogenic fluid management, additive manufacturing, advanced propulsion, in-situ resource utilization and thermal management systems.

NASA will gather data from industry, academia, government and other stakeholders through virtual meetings over the next month and create a final list of shortfall priorities.

The agency will assess its ongoing tech development initiatives against the priorities to determine new investments and identify potential adjustments within its portfolio.

Insights are due May 13 .

• additive manufacturing
• cryogenic fluid management
• space exploration
• Space Technology Mission Directorate
• space technology shortfall
• technology development
• technology investment

New Opportunity Offering Small Businesses Up to $54M in CHIPS Act Funding

TSA Seeks Maintenance Services Provider for Airport Checkpoint Equipment

IARPA Program Seeks Algorithms That Can Re-Identify, Geolocate People & Objects Across Disparate Recordings