Appendices

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The Guide > Appendices

Use appendices to present detailed or additional information that is summarized or referenced in the body of the plan. This reduces the length of the plan. It also enhances readability and ensures that the reader does not get sucked into excessive detail. Suggestions for possible appendices follow.

If the appendices are very lengthy, consider binding them into a separate volume. This should make the plan appear less intimidating and creates the opportunity to circulate the plan with or without appendices. If presenting the appendices as a separate volume, be sure to include a cover page (complementing that of the main plan) and a detailed contents list (number all pages in the appendices).


Review of Development of Business (20XX to 20XX)
Consider using a chronological list. Focus on highlights and important events.

Summarized Historic Financial Statements (20XX to 20XX)
Tabulate high-level values (revenues, cost of sales, pre-tax profits, fixed assets, current assets, current liabilities etc.). Summarize highlights and explain any exceptional events. Offer audited accounts as attachments or separate items.

Detailed Description (Technical Specifications) of Product/Service (Range)
Assume reader has no prior technical knowledge. Minimize use of technical terms/jargon and avoid blinding with science. Offer technical write-ups as a separate document. If necessary, include a glossary.

Market Review and Results of Market Research
If you cannot compile this appendix, you should seriously reconsider whether you are ready to write a business plan. Include tables explaining size of market, segmentation, competition, market shares, growth patterns, distribution channels, price/quality segments, customer categories, future trends, market share/segmentation projections etc. Summarize your main findings in the markets section within the body of your plan.

Assessments of Competitors
Who, what, where, how etc. Explain how your products and services compare. How would you rate your business's strengths, weaknesses, threats and opportunities relative to your main competitors? Summarize your main findings in the markets section within the plan's body.

Market Projections & Sales Forecasts (20XX to 20XX)
Use tables and charts. Clearly state all key assumptions on market size and shares, volumes and prices. Confine your assessments to directly available, served markets (rather than total markets). If you plan to serve several markets, devote separate sections within this appendix to each market and then produce a summary of the overall projections.

Build your sales projections from the ground up by setting out (a) clear marketing and sales strategies (b) explicit sales plans and budgets and (c) realistic assessments of numbers of enquiries, outlets, customers, contracts etc. and conversion rates or lead times to arrive at sales volume and value forecasts. These should be compiled on a monthly basis for the first year and quarterly thereafter. Do not base the projections on superficial market share assessments e.g. we will achieve sales of $500,000 based on securing a 2% of the regional market which is projected by researchers to reach $25 million.

Be sure to explain the marketing strategies and plans in fair detail – specify resources required, costs etc. Identify any prospective partners and describe sales methods. In simple terms, you need to cover the 4Ps – product, price, place and promotion. Compile a 3-5 year annual marketing budget and break it down by month for first year and quarterly thereafter.

Summarize your plans and projections in the body of the plan. You should also feed the resultant detailed revenue and marketing cost projections into your financial projections.

Details of Manufacturing/Operational Plans & Costs
Describe processes/operations in limited detail. Diagrams or flow charts may help explain complex issues. Indicate capital investment (and timing), describe/justify (briefly) the functions of major items and review any capacity-related issues. Discuss sources of materials/supplies and their costs. Specify projected staffing levels/rates, direct/indirect operating costs and productivity levels. Discuss inventories and production cycles as well as related planning and control systems. Even if you are a service business, use this appendix to describe operational issues connected with the provision of these services, support etc.

CVs of Senior Managers
If your business is substantial, you must present CVs for a balanced and experienced management team. If gaps exist, supply job descriptions and explain how they will be filled. Remember the five factors which venture capitalists look for when making an investment – management, management, management, market and, finally, product!!! Bear in mind that many businesses try to follow this sequence in reverse order!!!

Assumptions for Financial Projections (20XX to 20XX)
The assumptions should be consistent with and derived from the earlier sections/appendices in the plan. Use text bullets to highlight key assumptions and place the details in tables within this appendix.

If you need guidance, download a trial copy of Exl-Plan and have a look at its Textual Summary Report and monthly assumption reports.

Financial Projections (20XX to 20XX)
Use tables showing projections for first year (or longer) in considerable detail. You should include fully integrated P&Ls (income statements), cash flow projections and balance sheets by month for the first year. Present less detailed quarterly & annual projections for subsequent years.  The opening balance sheet and first year's projections should coincide with the first year covered by your plan.

Check out the contents and layouts of the monthly, quarterly and annual reports generated by Exl-Plan. You could paste or link key tables and charts from Exl-Plan directly into Free-Plan (see Using Exl-Plan with Free-Plan). A lower tech solution would be to append photocopies of Exl-Plan’s reports to the back of your business plan. When photocopying, you will be able to change margins and enlarge pages or change their orientation to suit your plan's layout and bindings.



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