APPENDICES OF A BUSINESS PLAN
The appendices section of your business plan is used to provide readers
with information and documents that support your claims made throughout
the business plan. Many entrepreneurs neglect to develop this section,
thinking that bankers and other investors will never read it. In realty
through, most investors want to see the information sources used by the
business plan writer/entrepreneur.
By creating a well organized and throughtout appendices, you are ultimately
enhancing your credibility as a person and an entrepreneur. And you must
be a creditable source before an investor will trust you with their money.
The documents placed in your appendices may include, but not restricted
to, the following items:
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demographic information and statistics,
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weighted average selling price calculations,
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weighted average product cost calculations,
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charts and diagrams to better illustrate and/or compare variables,
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sample of advertisements or publicity ads,
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partnership agreement (if establishing a partnership),
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resumes of each owner and key management personnel,
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product pictures, photograph, blue print, etc.....
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map of area where your planned business venture will operate,
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floor plan of facility or production plant,
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detailed budgets for marketing expenses and administrative expenses,
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detailed pricing schedule,
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patent, copyright, and/or trademark confirmation,
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supplier's letters of intent,
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clippings from newspapers articles etc, supporting any claims made,
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personal credit report of owner(s),
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personal balance sheet (assets and liabilities) of owners,
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customer letters of intent (customers willing to buy your product),
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letters of intent from future shareholders or investors,
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survey or questionnaire along with results,
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organizational chart,
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market research reports,
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detailed technical descriptions of product or service,
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leasing agreements,
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letters patent,
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personal references (past employers, banks, other professionals),
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consultants reports, and
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any other information relevant to your particular business venture.
TWO FINAL NOTES:
- Be sure to make reference, in the body of your business
plan, to each appendices item. Don't include a document or other information
sources in the appendices just to occupy space. If its needed include it;
if it's not needed exclude it.
- Be sure to prepare a table of contents for your
appendices. This will provide the reader with a quick view of your appendix
items. Organize your appendices' table of contents in the order in which
they are referred to in the body of the business plan.