An executive summary is a short overview of your whole business plan, and a good sample shows you exactly what funders and investors look for. It must explain your business, what you sell, who your customers are, and how much money you need, all on one or two pages.
What is an executive summary?
It is the first section of your business plan but you write it last. It summarises everything else in the document. If a funder or investor only reads this page, they must understand your whole business idea. Think of it as a trailer for a movie. If the trailer is boring, nobody will watch the movie. If your executive summary is weak, the funder will not read the rest of your business plan.
Why South African funders care about it
Funders like SEFA, the NYDA, or your local bank get hundreds of business plans. They read the executive summary first to decide if the rest of the plan is worth their time. If your summary is confusing or missing key details, they will likely reject your application before reading the full plan.
In South Africa, funders also look for compliance clues in your summary. They want to know if you are a registered business with CIPC. They want to know if you understand B-BBEE and if you are on the CSD for government work. Mentioning these things shows you are serious and ready to do business. KAGO can help you put together a complete business plan that makes funders take you seriously, though the final decision is always up to the funder.
What to include in your executive summary
Use this structure to write your own summary. Every executive summary needs the same basic parts.
- Business name and location: State your registered CIPC company name and where you operate. Tell them if you work from home, have a shop, or operate a mobile service.
- Problem and solution: Explain the problem your customers face and how your product or service fixes it. Be specific about the gap in your local market.
- Target market: Describe who will buy from you and why. Do not say everyone. Name a specific group of people or businesses.
- Business model: Explain how you make money. State your prices and how you will deliver your product or service to the customer.
- Financial highlights: Give your expected income and profit for the first year. Funders want to see that your business can survive and pay back loans.
- Funding required: State exactly how much money you need and what you will use it for. Break it down into simple categories like equipment, stock, and marketing.
Executive summary sample for a business plan
Here is a simple sample for a fictional business in a township to show you how it looks in practice. Read it to see how the parts fit together into one clear page.
Business name: Sipho's Plumbing Solutions Pty Ltd
Location: Tembisa, Gauteng
Sipho's Plumbing Solutions provides affordable and reliable plumbing repair and installation services to homeowners and small businesses in Tembisa and surrounding areas. Many residents struggle to find trustworthy plumbers who arrive on time and charge fair prices. We solve this by offering transparent quotes, arriving on schedule, and using quality materials.
Our target market includes homeowners, rental property owners, and local shops. We will market our services through local community groups, flyers, and word of mouth. We also plan to register on the Central Supplier Database (CSD) to bid for small municipal maintenance contracts.
The business is owned by Sipho Mahlangu, a qualified plumber with five years of experience. We are a registered company with CIPC and have a B-BBEE certificate. We need funding to buy plumbing tools, a reliable work vehicle, and to cover marketing costs for the first three months. We are requesting R150,000 to start the business and expect to reach a monthly profit within the first eight months.
Tips for writing a strong summary
Keep your language simple. Do not use big words to try and sound professional. Funders want to understand your business quickly. If you cannot explain your business in simple words, the funder will think you do not understand it either.
Keep it short. One page is best, two pages is the maximum. If it is too long, the funder will stop reading. They do not have time to read a long story before they even get to the business plan.
Be honest about your numbers. Do not guess your profits. If you need help calculating your expected income and expenses, a financial plan is essential. KAGO offers a Financial Plan for R1,895 to help you get your numbers right. A funder will check your math against the rest of your business plan.
Common mistakes to avoid
Do not write the summary before you finish the rest of the plan. You cannot summarise something you have not written yet. You will end up changing your summary many times if you write it first.
Do not leave out the funding amount. Some entrepreneurs write a great summary but forget to say how much money they are asking for. The funder is left guessing what you actually want from them.
Do not use vague descriptions. Instead of saying we will sell food, say we will sell freshly cooked kota and vetkoek to students at the local college. Specific details show you know your market.
Getting your business plan ready
Writing a business plan takes time and effort. If you need a professional document to take to a bank, SEFA, or an investor, KAGO offers a Complete Business Plan for R3,495. This includes the executive summary, market research, and financial projections. Remember, KAGO makes your business funding-ready, but the funder always makes the final decision.
Questions people also ask
How long should an executive summary be?
It should be one to two pages long. Keep it short enough that a funder can read it in a few minutes.
Do I need a registered company before writing an executive summary?
You do not need a registered company to write a draft, but funders usually want a CIPC registration number. You can register your company first or include it as a step in your funding request.
Can I use the sample above for my own business?
You can use the structure and layout of the sample, but you must change the details to match your own business. Funders will reject a plan that looks copied from another business.
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