The appendices will be the last section of your business plan to be compiled, but not until the rest of your plan has been written will you be able to do so. The appendices are a collection of documents, illustrations, samples and literature which will help to reinforce and substantiate all of the comments and assumptions you have made. Without any documentary evidence to back up your business plan it is unlikely to convince potential backers to provide any kind of finance.

What To Include In Your Appendices

Even though each and every business plan will vary in content there are a number of different headings which will be apparent in nearly all business plans. Under each of these headings are examples of the documents which can be included within the appendices:

The Nature Of The Business

• A map of your location in relation to your competition and to your intended market.
• Any relevant media reports from newspapers or magazines.
• Written details of correspondence from your professional advisers such as an accountant, solicitor or surveyor.
• An agreement showing the freehold or leasing details of your premises.
• Details of any trading history to date. This will obviously only apply if you are buying an already established business. A summary of the previous three years will be sufficient.

Key Personnel

• Full curricula vitae for all the key members of your management team.
• Any certificates or diplomas awarded to any of your personnel. The originals will carry far more weight than photocopies.
• Details of any partnerships or incorporation agreement.
• An organisation chart showing who will be responsible for each department.

Your Market

• Details of any firm orders, and previous client sales records.
• Relevant newspaper or magazine articles with details about your market.
• Details of any outside help from trade associations, chamber of commerce, business links or the government.
• Details of market research methods and results.
• Any information about your competitors such as their prices and details about their premises.

Products And Services

• Price lists from your suppliers and the competition.
• Details of product lead times.
• Any independent reports from consultants and the media.
• Details of your sales literature, promotional and advertising material.
• Applications for copyright, design and patents.

Financial

• Cashflow forecasts.
• Profit and loss statement.
• Balance sheet.
• Estimates for your overheads.
• Proof of your capital contributions such as bank statements or any policies you may have.

Positioning Your Appendices

Where to position your appendices will largely depend on how many supportive documents you intend to include, and how many pages they will span. If you will only be using a modest amount then it will be best to put them all at the end. This will keep your business plan as a single document and will let the recipient read through your plan as if it is a book. However, if your appendices number too many to fit easily within your plan then it will look more professional to produce a secondary file and clearly mark it ‘Appendices’.

In order to continue the high level of professionalism you have so far created and developed, ensure your appendices file is the same colour, style, make and design as the one you have chosen for your business plan. If your appendices are to be included in a second file then make sure this is made clear on the contents page of your business plan. Just a footnote referring to the second file will be sufficient, eg ‘Appendices are in the accompanying file’.

When you send your business plan to your bank manager or potential investor it is unlikely the intended recipient will be the actual person who will open your letter and business plan. In most cases it will be a secretary or a member of their staff. Since your business plan should arrive at least a few days before your meeting then the chances are it will be put on a desk or a shelf until the day. During this time the possibility of two files finding their way onto different desks or shelves is quite high. By bringing the reader’s attention to the fact that there should be two files at the beginning will avoid any confusion at a later stage. Before the reader assumes that you have forgotten to include the appendices in your file, the footnote will indicate a file is missing.