HOW TO WRITE IMPORTANT ASSUMPTIONS AND APPENDIX SECTIONS OF A BUSINESS PLAN
The appendix section of your business plan is very vital as it contains relevant information that could not be fit into the business plan. In your appendix, the additional documents will provide greater insight into your business and it will serve as additions to whatever you have in your main work. The appendix contains other researches you have done concerning your business, it is used to provide added support for the business plan, such as financial position, income statement, and market research. In your appendix, you have the opportunity to put tables, charts, graphs, and other illustrations and information that are relevant to your business plan. Other information includes a certificate of registration, intellectual property documentation, and your credit history.
The appendix section of your business plan is the parts where you include additional documents about your business that you want your reader to be aware of. Although is the last part of your business plan is well structured, it can go a long way in convincing your reader that you have a great business idea and also convince your investors to invest in your business.
REASON FOR BUSINESS PLAN APPENDIX
The major purpose of the business plan appendix is to provide evidence for key components of your business plan. In your business plan appendix, you need to include full details of tables, charts, and graphs. Although you may have the summary of those charts in your plan but should be fully explained in the appendix section of your business plan. Your appendix can include almost everything that is important to your business.
HOW TO WRITE THE BUSINESS PLAN APPENDIX FOR YOUR BUSINESS
In your business plan appendix, several support documents should be attached. Below are the relevant things that you can include in your business plan appendix.
- Detailed Financial projection: you must state in your business plan appendix, the full financial projection of your business plan. You can use your business plan to raise loans and capital and to do this, you need to let investors and funders see your financial projections. Majorly, your financial requirement should be projected on a monthly, quarterly and annual cash flow statement and financial statement of your business.
- List out your customers: Another thing that you need to include in your business plan appendix is the number of your current customers. It will be helpful if you want to expand and increase your market presence, not only that, it will also help you to reach out to those who want to invest in your business. This part must be well articulated in your business plan appendix because the investors would know how large or big your business is in terms of the number of customers, which could be instrumental in investing in your business.
- Written Recommendation: This includes written recommendations from your customers and several pieces of evidence of previous work done. This will serve as good evidence for your potential investors and will increase their confidence level to invest in your business. For example, you may include online messages, email communication, personal letters, e.t.c.
- Team Members: Certifications held by your team members should constitute another aspect of your business plan appendix. This can include their degrees and other professional courses that are related to the employees or team. This is a very good part of your appendix because it enables your funders or investors to know the value and quality of the people on your team. The quality of people in a business is a very good indicator of success for the business, and it is one of the things investors look out for. Also, in your business plan appendix, you may need to include the organizational structure and job description of each employee.
- Marketing Materials and Plan: the marketing section of the business plan provides a brief overview of your marketing strategy. In your appendix, you need to attach the complete marketing plan, it will help the reader to understand your thoughts about where and you will channel your marketing efforts, and how you will advertise to your customers to expand awareness of your brand and sales of your products/services.
- Intellectual Property: you should also state in your business plan appendix, whether your business has any patent right or trademark. These will protect your business and establish to your reader that your idea is original and worthy of investment. It is important to include documents that are relevant to that effect.
- Your Business History and Background: why you must include this is to capture your competitors and provide additional information about them. This is part of the things stated under business history. You need to include information that is relevant to your business about your competitors.
- Market Analysis: in your business appendix section, you should include information about your current customers, potential customers, competitors, risks identification, and marketing research. If this is present in your appendix, it will give investors a clue on how much work you have done concerning your business, what you intend doing and how to reduce threats that may likely occur in the future. It’s a positive sign for investors to invest in your business.
Read Also: HOW TO WRITE BUSINESS RISK ANALYSIS FOR YOUR BUSINESS
HOW TO STRUCTURE YOUR BUSINESS PLAN APPENDIX
Because the document buttresses information in your business plan, it is best to keep them in the same order, for easy referral or access. However, if you have more pages in your appendix, you need to section them into different phases. Break them down by letters (in alphabetical order) or by numbers; then list each you’ve included in your appendix in that particular order. The structure of your business plan appendix should be in a way that makes it appealing to your investors or funders. Find below the way you should structure your business appendix;
- Table of Contents: the need for a table of content in your appendix is for easy access. Any documentation you include in your business plan appendix, there should be a corresponding table of content.
- Brief and simple: your business plan appendix section should be brief and simple. Only include what is necessary for your appendix, because readers are looking for information to back your claim in your business plan.
- If you include any confidential statement in your appendix, let your reader know that confidential information should not be shared with outsiders. E.g. intellectual property and or other legal documentation.
- Because the appendix is the last part of your business plan, it’s possible for your reader to skip it. Therefore, it is important that your business plan stands alone and all other information in your appendix should be supplementary. Basically, even though the reader skips your appendix, most of your information should be found in your business plan.
Summarily, your business plan should not be too much in terms of the number of pages, so any other relevant information that is not in the business plan will be included in the appendix for investors to see. The business plan appendix is a great way to add to other important information without adding to the length of the document. Also, remember the importance of representation. Your business plan appendix must represent you well; proofread and check typographical errors in your work and check your grammar. Use a standard business font for your write-up.
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