Suggestions
1. An appendix provides supporting detail for statements made in the business plan.
" Be sure to reference your appendices in the body of the business plan. Tell the reader when and why to refer to the appendix.
" Tab each appendix to make it easy to find.
" Number the pages in the appendices. It makes reference to items much easier in your presentation and discussions.
2. Use as many appendices as necessary to make the body of the business plan as concise as possible, yet provide excellent documentation and explanation.
" Investors want a short document to read, but they want to know that you've done your homework.
3. Once the plan is done and the appendices completed, read it one more time before copying and binding.
" Double check the appendices' references, tabs, and page numbers.
Resources Needed to Write
1. The complete draft copy of the business plan. Cross check to make sure that references in the body of the document correspond to the correct appendix and page number.
2. Copies of
" key people's resumes.
" organizational chart.
" spreadsheets of financial statements.
" diagrams, pictures, and/or description of the product.
" market research on the customer.
" competitor information.
In this section, each heading has categories of information and format rather than questions. You have already answered the appropriate questions in the body of the business plan. Now, document your plan with easy-to-read charts, graphs, financial statements, etc. The letter in front of each section title designates the tab this information should be behind.
A. Resumes, Biographies of Key Personnel
Resume
For business plan, keep to one page.
1. Name and address.
2. Title.
3. Experience.
" Chronology format shows duration and recentness of experience.
" Responsibility format highlights skills and experience.
4. Education.
" When--this might reveal your age range. It is necessary to verify your age range.
" Where--in some cases your investors may recognize and value the institution.
" What type.
" List degrees and important professional development during career. You may need to offer a sentence or two of explanation if the title of the program does not reveal its content.
5. Professional.
" Memberships in relevant associations.
" Avoid listings that reveal gender, race, ethnicity, age, etc.
" Certifications.
" Awards.
Biography
Elaborates on key events. Should support the resume and flesh it out. No more them one page. Can include personal data such as family information if relevant.
B. Advertising Samples
1. Company logo.
2. Sample brochure( s)
3. Sample print ads
4. Media budget.
C. Organizational Chart
Shows who holds what position, reports to whom, and where specific responsibilities lie.
President/CEO
Production/Operations Sales and Marketing Finance/Accounting
D. Customer Profiles
1. Benefits sought--product/service features that meet benefits.
2. Consumer or business.
3. Distribution.
" By industry.
" By region.
" By size.
" By use/application.
4. Use patterns--industry.
5. Specific applications--individua1 customer.
6. Purchase patterns--Buying style: leader, late-adopter, etc.
7. Demographics/psychographics/geographics.
8. Media preferences.
9. Price sensitivity
" Ideal price, price range.
10. Specific benefits sought.
11. Probability of purchase.
12. Percentage of market share.
" By industry.
" By customer--percentage of their business that is yours.
E. Competitor Profiles
1. List competitors either in order of importance or alphabetically if they are all relatively equal.
2. Include the following elements:
. Name and location.
. Key management people.
. Product line description and differentiation.
. Pricing strategy, pricing information.
. Promotional strategy.
. Distribution channels.
3. Categorize as aggressive, passive, etc., and why.
4. Why they are a competitor?
5. Their target markets.
6. SWOT analysis.
. Strengths.
. Weaknesses.
. Opportunities they present to you.
. Threats they pose to you.
7. Their market share.
8. Their position in the market.
F. Product Profiles
1. Narrative description.
2. Technical description--diagrams, photographs, line art of the product. 3. Charts showing needs met by particular features.
4. Comparison/contrast with key competitive products.
. Features.
. Benefits for customer of each feature.
. Pricing.
5. Any proprietary aspects that provide a competitive edge.
6. Differentiation &om market.
. Competitive advantage.
7. Positioning in the market.
8. Pricing strategy.
9. Promotion strategy.
10. Distribution strategy.
11. What target market is each product/product line directed towards? 12. New product consideration, improvements planned.
G. Site Study and Store Layout
A Site study.
1. How site was selected.
2. Why site was selected.
3. Zoning issues, if any.
4. Infrastructure.
. Utilities, access, phone.
. If plant--supplier access: rail lines, major highways, etc.
. If retail--customer access: relationship to major roads, intersections, etc.
5. Parking.
6. Signage plan.
7. Location of competitors.
B. Store Layout.
1. Pictures or diagram--exterior.
2. Pictures or diagram--interior.
. Explain the choice of layout.
3. Signage plan-if not covered above.
4. Remodeling costs.
5. Building costs.
6. ADA compliance.
H. Financial Statements
Sales forecast.
2. Cash flow statement.
3. Startup costs.
4. Current and projected profit and loss statement.
5. Current and projected balance sheet.
You have more types of financial statements to choose from than are currently covered in your text. Bank tables follow, one to a page.
Appendix HI
Forecasts-- You need three sales forecasts: Optimistic, Most Likely, Pessimistic.. T_" outline and copy and paste; add the appropriate heading. Example uses calendar _ 25financial year. Adjust to fit your financial year.
Appendix H2
Cash Flow Statement- You need three cash flows: Optimistic, Most Likely, Pessimistic. Take this outline, and copy and paste; add the appropriate heading. Example uses calendar year as the financial year. Adjust to fit your financial year.
Appendix H3
Table of Startup Costs--Retail Store
.
Appendix H4
Current and Projected Profit and Loss Statement--Example is for three years: profit and loss should be prepared for five years, current plus four.
Appendix Hs
Current and Projected Balance Sheet
I. Global Issues
A Are you prepared to go global if necessary?
1. How would your business plan be modified?
I B. How would you enter global markets?
1. Exporting.
2. Indirect exporting.
. Agents and brokers.
. Export management company.
. Export trade company.
. Piggybacking.
. Foreign-based distributors or agents.
3. Direct exporting.
4. Licensing.
C. How will you identify potential markets?
D. International financial matters.
1. Funding.
2. Managing payment.
. Letters of credit.
. Methods of payment.
E- What expertise do you have in understanding other cultures?
1. Language skills amongst the management team.
2. Cross-cultural experiences.
F. What if any, trading regions/trade agreements will affect your company?
1. NAFT A
2. European Union.
3. Andean Common Market.
4. EuropeaIl Free Trade Association
G- Are you ISO 9000 qualified?