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What Is an Example of a Corrective Action Plan?

An employee corrective action plan, also known as a performance improvement plan or a disciplinary action form, is a written document outlining an employee’s unsatisfactory work or behavior. The document also details the improvement required, the time allowed for improvement, and potential consequences if expectations are not met.

The written form is completed by the supervisor, giving specific examples of both the employee’s poor performance and the desired performance. However, the form is only part of the correction action plan. Once documented in writing, the supervisor must meet with the employee to discuss the plan as well as to determine the resources or support the employee needs to succeed.

Entreprenuer.com and Tidyform.com offer sample corrective action forms.

How to Write an Invoice

If you’re planning to start a business, you may find that you’re going to need to learn to write an invoice. For example, maybe you provide lawn maintenance or pool cleaning services to a customer. Once you’ve completed the job, you’ll need to write out an invoice so you can collect a payment for those services. Knowing how to write an invoice accurately and professionally can improve your reputation, show customers that you are legit and help you keep track of payments for your own records.

Consider a Customized Template

Before you begin writing your invoice, think about how you want it to look. A blank sheet of paper or blank email is good enough, but a customized template adds a touch of professionalism to your business. Whether you plan to print your invoice and hand it to the customer in person or send it digitally, look into software, tools and word processing documents that will help you create a custom invoice with your business name, logo and colors.

Start with Your Contact Information

Your invoice should clearly state that it’s from your business. The company name should be in a prominent position at the top. Beneath the company name, at minimum, you’ll want the company address and phone number. You may also opt to include your name or the name of the person who is in charge of billing, along with any other contact information that the customer can use if he or she has questions. This may include an email address, social media handles, fax numbers or additional phone numbers.

Give It Dates and Invoice Number

Beneath your contact information, you’ll want to add a date and invoice number for record-keeping purposes. The date generally reflects the day you performed the services, or the day you completed the services if it took multiple days. The invoice number will vary based on how you keep your books. In this area, you’ll also want to add a due date. It may be the same as the date you completed the services or it may be a date in the future.

Add the Customer’s Contact Information

Next, you’ll want to add the contact information of the customer who received the services. This may start with the person’s name or his or her company name. You may also add an address for an extra level of identification, especially if you performed the services at the customer’s home or business address.

Add the Services, Products, Prices and Quantities

Now it’s time to write the important part of the invoice: the list of services and their prices. While it varies from template to template, you’ll generally have three columns. The first one is a list of services provided and products used. The second one tells the quantity. For example, if you cleaned someone’s pool and added two chlorine tablets to it, your first line will explain the services with a quantity of one, and your second line will list the chlorine tablets with a quantity of two. The last column of each line will show the price itemized for each item.

Total It Up and Add Any Additional Information

Once you’ve listed all of your products and services, you’ll want to calculate and write the grand total at the bottom. Be sure to list and add any local or state taxes as required by law as well. After you’ve added the total to the invoice, you can add anything else you like, such as “thank you for your business.” If you are sending the invoice electronically, you may want to link the customer back to your website via a “pay now” button to make paying simple.

What goes in the appendix of a business plan?

Business plan appendix best practices, what to include in your business plan appendix.

Candice Landau

2 min. read

Updated October 27, 2023

Female entrepreneur standing in a greenhouse with hanging flower pots holding a folder that includes additional data and charts about her business.

The appendix of a business plan is usually the last section to appear in the business plan. Although not required, a well-structured appendix can go a long way toward convincing your reader you’ve got a great business idea, or indeed that you have thoroughly thought through your idea.

The appendix of a business plan is the place to include any additional documents that you want to use to give your reader a feel for your product, marketing, services and so on. It’s also a good place to include any additional tables or charts that you didn’t want to include within the content of the plan (after all, the simpler the plan, the better, right?), but that you feel may help your reader understand your business better.

Of course, you do not have to include an appendix in your business plan. Sometimes, you’ll only actually be using it to share information with specific people—perhaps a lawyer who wants to see patents, or trademarks. Banks or lenders might also sometimes require additional information like your personal or business credit history, though it’s best to ask them.

In general, here are some of the documents you might think to include in your business plan appendix:

Charts, graphs, or tables that supplement information from other sections of your business plan
Any agreements or contracts that you have with clients or vendors
Licenses, permits, patents and trademark documentation
Product illustrations or product packaging samples
Marketing materials
Resumes for each of your executive team members
Contracts and supporting documents for anything else
Building permit and equipment lease documentation
Contact information for attorneys, accountants, advisors, and so on
Credit history
Detailed market studies
If your appendix runs more than a few pages long, or contains a variety of documents, you may want to consider adding a separate table of contents.
If you do share confidential information within the business plan appendix, you will also want to keep track of who has access to it. A confidentiality statement is a good way to remind people that the content you are sharing should not be distributed or discussed beyond the agreed parties.
Given that the appendix is the last part of the business plan, it’s quite likely your readers will skip it. For this reason, it’s important to ensure that your business plan can stand on its own. All information within the appendix should be supplementary. Ask yourself: if the reader skipped this part of my plan, would they still understand my idea or my business model? If the answer is no, you may need to do some rethinking.
Be sure to also include relevant information in the appendix of your business plan. It should not be totally unrelated to the materials you’ve already covered.
K.I.S.S. In case you’re not familiar with the acronym, it means “keep it simple, stupid.” This is good general advice for your appendix. Keep it short. You don’t need to include everything, just the relevant information that will give your reader greater insight into your business, or more detailed financial information that will supplement your financial plan.

To get a jump-start on your business plan, download our free business plan template and check out our detailed step-by-step guide on writing a business plan .

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Business Plan Section 9: Appendix

The appendix section of your business plan provides information to support the 8 preceding sections. Here’s how to organize the appendix.

By now, we hope you’ve read through our series on business planning and have reached this final installment, which is what to include in Business Plan Section 9: Appendix. Think of your business plan as the narrative that tells the story, while the appendix is where you put the factual information that supports it. The appendix fleshes things out with details that help corroborate and support the plan you have presented.

Maybe you’re wondering why, if each of the preceding sections is covered so thoroughly, you even need an appendix. Why wouldn’t you just include all the information in the appropriate section? The appendix makes the rest of the plan easier to read, without taking a detour for credentials and corroboration.

In addition, your business plan can serve several different functions, and each requires a different set of documentation. Your plan can serve as a roadmap for your internal planning purposes only, it can be a recruitment tool for employees or investors, or it can support a request for funding from a financial institution. Each of these would require different documentation, and in many cases, you might not want to share some of the information with everyone. Having an appendix allows you to insert and remove items depending on who will be reading your plan.

What Goes Into Business Plan Appendix?

Again, not everything might need to be shown to everyone who reads your plan, but here is a full list of items you might want to prepare for your appendix:

Credit histories for both the business and its owners
Business and personal tax returns
Resumes of the owners and key management
Photos of your products or their prototypes
Samples of marketing materials, logos, and mockup ads
Reference letters from business associates and community leaders
Details of your market research studies
Information about your competitors
Press clippings about you and the business
Any relevant news articles on your product or industry
Legal documents such as your incorporation papers, shareholder certificates, etc.
Copies of patents, permits or licenses you hold
Copies of your property and equipment leases or rental agreements
Contact info for your professional staff, including your accountant and attorney
Contracts for current or future work
Spreadsheets and documentation for financial projections

The appendix will be the final section of your business plan, and just as with every other part, take the time to meticulously prepare these supporting materials, especially if you’re presenting the information to a potential lender or investor . The care and thoroughness you put into your backup documents will be a big clue to your readers about your general approach to business and could help sway opinion one way or the other.

The Small Business Administration suggests keeping a record of who has copies of your plan and what items you’ve included in the appendix. That way, you can update items as necessary. Do keep tight control over who you distribute it to. You may want to consider having your readers sign a Non-Disclosure Agreement, or NDA, to help protect the confidentiality of your information. SCORE, the Service Corps of Retired Executives, has a free template on its website.

And again, because of the highly privileged nature of some of what you’re providing, be very particular who you share what with. Creditors will likely need to have access to all of your documentation, but more casual readers, who might just want a bit of information about your business, don’t need to see the appendix at all, or at most, just a few select items.

How to Organize a Business Plan Appendix

Because the documents substantiate the information presented in your business plan, it’s best to keep them in the same order as they are referred to in the plan. If you have more than a few pages of documentation in the appendix, start with a table of contents page that lists each section of the business plan, broken up with letters or Roman numerals; then list each item you’ve included in the appendix for that particular section.

This will make it easier to refer to the items as you need to in the plan. For example, when you talk about your planned advertising campaign in the Sales and Marketing section, you can refer to “Appendix, Section IV” for copies of what the ads may look like.

If the appendix contains a lot of material, you can also consider using tabs to break it up, which will make it even easier to locate things. Have each document clearly labeled so readers will know exactly what they’re looking at when they refer to them, and make sure your copies are high quality, clear and legible. Do not include original documents.

Business Plan Recap

Don’t rush through the work of putting your business plan together. Whether it’s for your own use or a lender has asked for it, the information it contains and the work you do to put it together will be extremely valuable to the success of your company. It does take a lot of time and effort to research and write a solid plan, but it will come back to you in spades.

A business plan follows a specific format, so follow the guidelines we’ve set out for you in the following articles:

Business Plans 101
Section 1: Business Plan Executive Summary
Section 2: Business Plan Company Description
Section 3: Business Plan Organization and Management
Section 4: Business Plan Products and Services
Section 5: Business Plan Market Analysis
Section 6: Business Plan Sales and Marketing
Section 7: Business Plan Funding Request
Section 8: Business Plan Financial Plan
Section 9: Business Plan Appendix

If you’ve already read the series, you’ve heard this before: it’s imperative to always keep your audience in mind. Your goals for what you want the business plan to accomplish will dictate who your audience is, and the information you present will be shaped by that.

Finally, remember the importance of presentation. This is a reflection on you and your business, so make sure it represents you well. Proofread and check for errors in grammar and spelling. Consider hiring a writer or editor if you’re not particularly skilled with words. The business concept is yours, but a professional can help you articulate it in a way you may not be able to.

Use a standard business font for the body copy so that it’s easy to read, and be judicious in your use of italics, underlining, and bold. Business News Daily offers links to several free templates you can check out. You can follow one to put your plan together or just look at them for ideas that might work for you. There is also software available that can walk you through the process.

Have the plan printed on good paper and bind it in some fashion, whether into a booklet, in a high-quality binder or spiral binding. Add a cover with the name of your business and make sure to have your contact information easily available. Include a cover letter with the plan, because it may get passed around to other people who aren’t as familiar with your venture.

Remember the old adage, “You only get one chance to make a first impression.” Make yours count.

Next Article: 5 Tips for Sticking to Your Business Plan

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Chapter 16 Appendix: A Sample Business Plan

The following business plan for Frank’s All-American BarBeQue was built using Business Plan Pro software. It is for the purpose of illustration and does not represent the full capabilities of the software.

16.1 Executive Summary

Frank’s All-American BarBeQue has operated for decades in the southern Connecticut shore region. With a tradition of superlative food at fair prices served in a family-friendly atmosphere, the owners now believe it is time to open a second restaurant and expand the production and the distribution of Frank’s signature barbecue sauces. This second restaurant will be in Darien, Connecticut, and will be nearly twice as large, in terms of seating capacity, as the current Fairfield restaurant. The company also plans to ramp up production of its sauces and increase their sales fourfold in the next three years.

The owners of Frank’s All-American BarBeQue and other investors plan to put $160,000 of their own money into the second restaurant and expand the production of the signature sauces. They seek to raise an addition $175,000 from a bank loan that will be repaid in two years.

Vision Statement

To produce the best barbecue food in New England.

Mission Statement

The mission of Frank’s All-American BarBeQue is to provide the southern Connecticut shore region with the finest barbecue food in four major regional styles at affordable prices in a family-friendly setting. As we grow, we will never forget and remain faithful to those factors that have made us a success.

Keys to Success

Frank’s All-American BarBeQue has been in business for nearly forty years. It has weathered good times and bad times through all types of economic conditions. We have survived because Frank’s has remained committed to several principles.

The only objective of a restaurant is to serve the finest food it can prepare. Good food—not more gimmicks or advertising—brings in customers and, more importantly, keeps customers.
Preparing the finest foods means a commitment to excellence, which means obtaining the best ingredients and a dedication to cooking barbecue properly, which means cooking carefully and slowly .
In addition to providing the finest food, we remain committed to providing excellent service. To us, this means friendly and knowledgeable staff members who make the customers feel like they are dining with family.
We provide the right atmosphere. Our goal is to have a setting that says “barbecue.” We do not provide a fancy setting; our basic setting complements the food we serve.

Company Summary

Frank’s All-American BarBeQue has been a highly successful restaurant in Fairfield, Connecticut, for nearly forty years. It was started and is still managed by Frank Rainsford. Its food and sauces have won awards at both regional and national barbecue cook-offs. In addition, Frank’s has been voted the best barbecue establishment in Connecticut numerous times by many local newspapers and magazines.

The management team of Frank’s All-American BarBeQue has decided that now is the time to expand to an additional location. After careful analysis, a second Frank’s All-American BarBeQue can and should be opened in Darien, Connecticut. This restaurant will be larger and geared to better tap into the growing premade, take-home dinner market.

In the last few years, Frank’s has been selling its four signature barbecue sauces—Texan, Memphis, Kansas City, and Carolina—in local supermarkets. Although this represents a small portion of overall revenues, sales have been growing at a remarkable pace. This market must be exploited. Preliminary market research indicates that this segment of the business will grow at 20 percent per year for the next five years.

Company Ownership

Presently, Frank’s All-American BarBeQue is a limited liability partnership with Frank Rainsford and his wife Betty as owners. Each has a 50 percent share in the business.

The plans for expansion will bring in capital from three other investors: Robert Rainsford, Susan Rainsford Rogers, and Alice Jacobs. Robert Rainsford and Susan Rainsford Rogers are the son and daughter of Frank and Betty. Both have extensive work experience at Frank’s. Alice Jacobs has been the restaurant’s accountant for over twenty years.

To assist the financing of the expansion, Robert Rainsford and Susan Rainsford Rogers will each invest $50,000, while Alice Jacobs will invest $60,000.

The new limited liability partnership will result in the investors holding the following equity percentages:

Company History

Frank’s All-American BarBeQue was founded in 1972 by Frank Rainsford. Although a native New Englander, Frank learned about cooking barbecue while serving in the US Air Force. During his twelve years of service, he traveled across the country and learned about the four major styles of American barbecue—Texas, Memphis, Kansas City, and Carolina. His plan was to introduce people in southern Connecticut to real barbecue that entailed high-quality meats properly cooked and smoked over an appropriate length of time.

In the beginning, Frank’s All-American BarBeQue was a small facility; it could seat about thirty people. It was located near the Fairfield railroad station and was the first full-service barbecue restaurant in Fairfield. Frank’s placed an emphasis on featuring the food; it had a highly simplified decor where the tables were covered with butcher paper, not linen tablecloths. The restaurant was an immediate hit, received considerable local press, and won several food awards. This success enabled Frank’s to move to a larger facility in Fairfield on the town’s main thoroughfare—Boston Post Road. The new location was a midsize restaurant of about eighty seats. Frank has built this location into a relatively successful and locally well-known enterprise. It has been at the present location since the early 1980s. It shares a parking lot with several other stores in the small mall in which it is located.

Frank’s has won many awards at regional and national barbecue cook-offs (for both the food and the sauces), which is unusual for a barbecue business in New England. The restaurant has been written up, repeatedly, in the local and New York papers for the quality of its food and its four signature barbecue sauces. In the last few years, Frank’s has sold small lots of these sauces in local supermarkets. They have been distributed because of Frank’s personal connections with the store managers. Frank Rainsford has been approached by a major regional supermarket to sell his sauces. The supermarket is willing to find a facility that could produce Frank’s sauces in significantly larger volumes, which would represent a substantial increase in the sales of sauces. Table 16.1 "Past Performance of Frank’s All-American BarBeQue" provides a summary of key financial figures for the last three years—2008 to 2010. Figure 16.1 "Past Performance Chart" illustrates these key numbers for that period of time.

Table 16.1 Past Performance of Frank’s All-American BarBeQue

Figure 16.1 Past Performance Chart

Company Locations and Facilities

Frank’s All-American BarBeQue has been in Fairfield, Connecticut, for decades. It has a reputation throughout the southern Connecticut shore region for excellent food and has received numerous awards. The management team determined that a second location could tap into this local name recognition. Several towns in the region were evaluated for total population, population density, family income, and home value. These factors were considered because of their impact on generating traffic and consumers being able to pay for meals that are priced slightly higher than typical fast-food outlets. In addition, the average family size and the percentage of family households were considered because Frank’s is a family restaurant. Lastly, data were gathered on the average travel time to and from work for residents and the real estate tax rate. Because the new location of Frank’s will emphasize prepared meals, we felt that individuals with longer commutes would be more likely to order meals and pick them up at Frank’s. A summary of these data is provided in Table 16.2 "Demographic Data for Selected Connecticut Towns—Part 1" and Table 16.3 "Demographic Data for Selected Connecticut Towns—Part 2" .

After thorough analysis, it was concluded that Darien, Connecticut, would be the best location for the new branch of Frank’s All-American BarBeQue. It has a high-income population and a high population density, and a large percentage of its inhabitants are members of family households. They have longer commuting times, which increase the potential need for prepared meals.

Table 16.2 Demographic Data for Selected Connecticut Towns—Part 1

Table 16.3 Demographic Data for Selected Connecticut Towns—Part 2

A specific location has been identified in Darien for the second Frank’s All-American BarBeQue. It is in a small mall and is large enough to have a seating capacity of 150–160 plus takeout facilities. The mall has more than adequate parking for future customers. The mall is located three blocks from the Metro-North Darien railroad station and is four blocks from the I-95 exit. It is therefore well positioned to attract traffic from both car and rail commuters. The lease fee for a three-year contract is very reasonable for a property of this size.

Products and Services

Frank’s All-American BarBeQue specializes in the finest barbecue served in a family-friendly format. It uses the finest cuts of meats that are free of any growth hormones. It is known for a variety of slow-smoked and slow-cooked meats, such as ribs, beef, pulled pork, and chicken. These are served with Frank’s famous and award-winning sauce varieties, which represent the four major styles of barbecue cooking. Frank’s is also noted for its side dishes and desserts.

Our goal is to expand operations to a second location in Darien, Connecticut. This outlet will be significantly larger and will have a section devoted to takeout meals.

Competitive Comparison

There are approximately forty specialty barbecue restaurants in Connecticut. They are spread throughout the state, but only four (including Frank’s All-American BarBeQue) are in the southern shore region. The three competitors are smaller operations. None of the barbecue restaurants in Connecticut have the history, reputation, acclaim, or awards that match Frank’s All-American BarBeQue. It is not an exaggeration to say that Frank’s is the preeminent barbecue restaurant in Connecticut. It has a loyal following that reaches as far as New York City.

Frank’s is the only barbecue restaurant in Connecticut where supermarkets are vying for the right to market Frank’s signature barbecue sauces. This sideline business promises to be extremely profitable and support the overall marketing efforts for both locations of Frank’s All-American BarBeQue.

Fulfillment

Frank’s All-American BarBeQue has always been committed to providing the absolute best in barbecue food. This has meant assuring the highest quality ingredients in food preparation. Frank has established a decades-long relationship with suppliers in the New York and Connecticut areas. He selects nothing but the choicest selections of beef, pork, and chicken. He has always made sure that his meats come from suppliers who are committed to quality ingredients and who never use growth hormones. This long-term relationship with a variety of key suppliers enables Frank to secure the best cuts at reasonable prices. Frank is equally careful in using the finest spices for his barbecue sauces. The same is true for all the side dishes that Frank’s All-American BarBeQue offers its customers.

This commitment to quality is not limited to the selection of meats and ingredients. Frank and his staff recognize that top-quality barbecue food requires a knowledgeable and deep commitment to cooking the food properly. All meats must be cooked and smoked slowly. This requires time, effort, expense, and commitment, but the results are spectacular. Some cuts of meat at Frank’s may require as many as eleven hours of preparation and cooking. Excellence is not achieved without a commitment to effort. This effort has been recognized with numerous awards at national barbecue cook-offs. Frank has clearly recognized that the meal is clearly a function of the quality of the meat, quality ingredients, and careful preparation.

Future Products and Services

Frank’s All-American BarBeQue is ready to accept new challenges. Opening a second restaurant will significantly increase sales, but the second location is only the beginning of new directions for Frank’s. Although Frank has been selling his regional barbecue sauces in local outlets for years, he is now ready to sign a contract with a major regional supermarket chain to market and sell these sauces throughout New England. Preliminary studies indicate that Frank can anticipate a 20 percent annual growth rate in the sales of sauces for the next five years.

With the growth of two-income families, less and less time is available to prepare meals at home. Recognizing this simple fact, Frank’s All-American BarBeQue plans to offer a variety of prepackaged barbecue meals that can be picked up at the restaurant and reheated at home. As part of its new commitment to a web-based presence, customers will be able to order these meals by regular phone, with smartphones, or through the Internet. Customers will be able to select from a list of prepackaged dinner meals or any combination of items. Customers can designate the time to pick up the meals, and the meals will be ready for them. This service promises significant revenue growth.

Market Analysis Summary

Since the 1930s, the American public has spent at least 5 percent of its disposable income on eating out. Even with annual fluctuations, this is a strong indicator of the viability of this industry. This can be best illustrated by reviewing industry results for the last few years.

Both 2009 and 2010 were difficult years for the restaurant industry. In 2008, sales increased by 3.8 percent. However, sales fell by nearly 0.75 percent in 2009. This was the first year in the history of the industry that sales actually declined. The restaurant industry’s sales in 2009 were $566 billion, down from over $570 billion. Prices rose by 2.2 percent in 2009. The increase in sales for 2010 was 0.5 percent, and price increases stabilized at 0.75 percent.

It is anticipated that there will be significant price competition in every segment of the restaurant industry. Some analysts argued that the poor performances for the restaurant industry in both 2009 and 2010 could be attributed to declines in both business and personal travel. Hotel occupancy rates in 2009 were down by nearly 10 percent. A study conducted by the National Restaurant Association argued that 20 percent of the sales in casual dining restaurants might be due to travelers and visitors. Frank’s All-American BarBeQue relies to a far lesser extent on travelers as customers. A rough estimate based on credit card receipts, for the period 2006–2010, indicated that travelers represented less than 2 percent of Frank’s sales. The pressure on the restaurant industry has been felt by many chain restaurants, which significantly curtailed their expansion plans.

Even though the recession was in full bloom in 2009, many food prices rose and rose significantly. Beef prices rose between 4 percent and 12 percent, while pork prices rose between 5 percent and 13 percent. Numerous studies have indicated that the increase in commodity prices will not be a transitory phenomenon.

With 925,000 food service locations in operation in the United States, this translates into 1 restaurant for every 330 Americans.

The health-care reform bill passed in 2010 should, in the near future, provide some relief for restaurants by creating a system that will assume greater responsibility by individuals to pay for their own health-care coverage.

Restaurants must also be much more cautious in the future about the possibility of hiring illegal aliens. As a whole, the National Restaurant Association supports immigration reform. However, it is concerned that any legislation should not limit a restaurant’s ability to hire workers. It is also concerned about the cost to assure worker eligibility.

The Mintel Group, a market research firm, found that consumers who are interested in quality opt for independent restaurants over chain outlets. An increasing consumer focus on health translates into an emphasis on natural ingredients. In the barbecue industry, this translates into naturally raised meats (i.e., the avoidance of artificial growth hormones in cattle), which are a hallmark of Frank’s All-American BarBeQue.

The National Restaurant Association estimated that sales in full-service restaurants in 2010 would exceed $184 billion—an increase of 1.2 percent from 2009 sales.

Several macroeconomic factors make opening a restaurant in Darien attractive, including the following:

Increases in the growth domestic product (GDP). The GDP is estimated to grow 1.7 percent in 2011 and 1.5 percent in 2012. The estimates for Fairfield County are significantly higher.
Disposable personal income. The national level of personal income should rise nearly 4 percent in 2011, and there is an expectation of 3 percent growth in 2012. These numbers appear to be much stronger in the Fairfield County area.

Although 2010 was not a banner year for the restaurant industry—it was one where more restaurants closed than opened each month—there was one bright spot: Chain barbecue restaurants grew between 2 percent and 3 percent—an auspicious sign even for independent operators.

The home meal replacement market and the existing investment in restaurant equipment provide a nice growth opportunity for restaurants. It is been estimated that takeout sales in limited service chain restaurants might be as large as 60 percent of total sales. The same study found that takeout food has been growing twice as fast as the overall restaurant industry. Natural competitors in this market are supermarkets that offer prepackaged meals. However, we feel that few—if any—supermarkets provide the quality barbecue food that can be found at Frank’s.

Market Segmentation

Frank’s All-American BarBeQue views its major market segment as suburbanites in the south shore region of Connecticut. One way of further segmenting the market is by the type of meal being provided. Table 16.4 "Market Analysis" provides estimated growth rates for each type of meal (plus sauce sales) and projected number of meals (and jars of sauce) for the period 2011 to 2015. Figure 16.2 "Market Analysis" illustrates the relative contributions.

Table 16.4 Market Analysis

Figure 16.2 Market Analysis

Market Needs

We believe that the market centers on excellent barbecue food served at reasonable prices and served in a family-friendly manner. We further believe that a growing segment of the market will want prepared meals that can be conveniently picked up and served at home. Table 16.4 "Market Analysis" provides a projected breakdown of the potential customers for the next five years. This breakdown is predicated on the type of meals served and includes the sale of sauces. We provide estimated growth rates and forecasted sale of meals (and bottles of sauces) for the period 2011 to 2015. Figure 16.2 "Market Analysis" shows the breakdown of the number of meals by type in 2015.

Web Plan Summary

Presently, Frank’s All-American BarBeQue has a very simple website. The website provides minimal information—listing some of the menu items and the restaurant’s telephone number. It was created eight years ago by a college student who was working at Frank’s.

Robert Rainsford’s professional expertise is in the area of website development. After graduating from college, Robert was hired by a firm that specialized in developing web and social media presences for other companies. He worked for that firm in New York City for seven years. Robert rose rapidly through the company’s ranks, eventually becoming one of its vice presidents. His expertise in this area will enable Frank’s All-American BarBeQue to significantly enhance its web presence. Rather than just having a website that identifies the restaurant’s location and telephone number, along with a brief summary of its menu, the new website will be far richer in content and capability. It will provide a complete menu listing, identifying all items with corresponding images. The new website will enable customers to place orders through the Internet for lunch, dinner, or takeout items. The section devoted to takeout items will enable a customer to purchase prepared meals or choose from all items on the menu to develop a prepackaged meal. Customers will be able to identify the time that they will arrive for the pickup.

The website will have links to the Facebook and Twitter accounts of Frank’s All-American BarBeQue. These connections will enhance its social media presence. Customers will be asked to post comments about their dining experience and suggestions on how Frank’s can improve its operations and service. It will enable Frank’s to expand operations and still maintain the same close customer relationship that currently exists at the Fairfield restaurant.

Website Marketing Strategy

The new web presence for Frank’s All-American BarBeQue will be geared to developing a new level of customer relationships. Customers at both restaurants will be asked to fill out forms where they will supply an e-mail address and a birthdate. (This information can also be supplied through Frank’s new website.) This information will enable Frank’s to keep customers informed of specials and offer coupons and the new rewards card program for special occasions, such as holidays or birthdays.

We view the website of Frank’s All-American BarBeQue as a major component of enhancing our relationship with our customers. It should provide convenience to customers through their ability to see what is on the menu, identify new specials, and order meals and pick them up at their convenience. The use of social media will expand awareness of Frank’s and enable it to develop closer relationships with present and future customers.

Development Requirements

Robert Rainsford tapped into his expertise in social media and has already developed a far more sophisticated website for Frank’s All-American BarBeQue. He has secured the necessary server capacity to handle additional traffic on the website. In addition, he has set up several social media accounts for Frank’s All-American BarBeQue, including Facebook and Twitter. Robert also created a program linked to a database that will monitor customer purchases through the rewards card program. This program will send out birthday notices and discounts to customers and will inform them of their current status in the rewards card program.

Robert contacted several former colleagues at his former place of employment and has identified several candidates for the role of website manager. This individual will be responsible for updating the website and the social media sites on a daily basis. He or she will also be responsible for analyzing the flow of information that comes through these sites and preparing management reports.

Strategy and Implementation Summary

The core strategy of Frank’s All-American BarBeQue is to continue what has made it a success at a new location. Simply put, our strategy is to provide our customers with the finest barbecue food in Connecticut, at reasonable prices, in a family-friendly environment. In addition, we hope to improve our ability to meet customer needs by making life more convenient for our customers. We believe that these fundamentals are universally applicable.

SWOT Analysis

A strengths, weaknesses, opportunities, and threats (SWOT) analysis was undertaken for Frank’s All-American BarBeQue.

The key strength of Frank’s All-American BarBeQue is the quality of its food and service. It has been the recipient of numerous local and national awards for its foods and sauces. Other strengths include a highly knowledgeable management team with expertise in operating a barbecue restaurant, a close working relationship with suppliers of premier cuts of meats, and a loyal clientele in the south shore region.

The weaknesses associated with this business plan center on operating an additional restaurant with a much larger capacity than the Fairfield, Connecticut, restaurant. The second location will require an experienced restaurant manager. This plan calls for a significant increase in prepared (takeout) meals. Orders will be placed either by phone or through the website. Current personnel have little experience in ratcheting up the takeout portion of the business.

Opportunities

This business plan offers significant opportunities for Frank’s All-American BarBeQue. A second, larger location will translate into a significant increase in sales. Finalizing a business relationship with the regional supermarket chain will enable Frank’s to significantly increase the production and the sales of its signature sauces. The sales of sauces are expected to increase by 20 percent per year for the next five years.

Any expansion with the opening of a new location always entails some risk. The principals of Frank’s All-American BarBeQue will be investing a significant amount of capital and will be borrowing money from a bank to open a second location. It is strongly believed that the second location will capitalize on the success of the Fairfield restaurant and will become a success.

Competitive Edge

The competitive edge of Frank’s All-American BarBeQue resides mainly in the quality of its food and its commitment to serve the food in a family-friendly environment. The quality of its food is unmatched in the entire state. No other barbecue restaurant has received the awards and the accolades that Frank’s All-American BarBeQue has received for the past forty years. Its reputation for quality gives it an edge that no other barbecue restaurant or chain can match.

Marketing Strategy

The target market for Frank’s All-American BarBeQue is essentially suburban families in the south shore region of Connecticut. These people appreciate the finest barbecue food at reasonable prices. It is expected that an important group within this target market will be families with two incomes whose busy schedules would make prepared meals a very attractive option. We further assume that this market is technically sophisticated and will appreciate the convenience of ordering these meals via the Internet.

A key component of the marketing strategy of Frank’s All-American BarBeQue is to use the Internet and technology to enhance the relationship with its customer base. Frank’s will use the website, Facebook, Twitter, and e-mails to inform customers of special food items or discounts based on holidays and customers’ birthdays. We intend to use the website as a mechanism to gain an improved insight into customer needs and wants.

Frank’s All-American BarBeQue will also initiate a rewards card program. Customers will sign up for the rewards card program either at the two locations or online. They can use this program every time they make a purchase either at the restaurants or online. After a set number of visits (seven), customers will be entitled to either discounts or free items. The rewards card program will enable Frank’s All-American BarBeQue to track customers’ buying patterns and anticipate the ways in which they can better serve their customers.

Sales Forecasts

We provide a five-year forecast of the dollar value of sales broken down by the two restaurants and the sauces in Table 16.5 "Sales Forecast" . Figure 16.3 "Monthly Sales for Two Restaurants and Sauces" illustrates a forecast for the breakdown of sales on monthly basis in 2011, and Figure 16.4 "Five-Year Forecast of Sales for Two Restaurants and Sauces" illustrates the breakdown of sales for the next five years.

Table 16.5 Sales Forecast

Figure 16.3 Monthly Sales for Two Restaurants and Sauces

Figure 16.4 Five-Year Forecast of Sales for Two Restaurants and Sauces

Management Summary

Currently, Frank Rainsford is the CEO and chief operating officer of Frank’s All-American BarBeQue. He is also the restaurant manager at the Fairfield restaurant. During the week, his daughter (Susan Rainsford Rogers) often replaces Frank as the restaurant manager. The Fairfield restaurant has a full-time cook who operates under Frank’s supervision, and two other full-time employees function as waiters and waitresses. These full-time employees are supplemented by six part-time employees.

Under the new management structure, Frank Rainsford will hold the position of CEO. His wife, Betty Rainsford, will be designated the president and chief operating officer. Their daughter, Susan Rainsford Rogers, will be given the title vice president for operations. She will be responsible for the day-to-day operations of the Darien, Connecticut, restaurant. Robert Rainsford will have the title of vice president of marketing. He will be responsible for all marketing activities and the operation of the website. Alice Jacobs will be the vice president of finance and the comptroller of Frank’s All-American BarBeQue.

Organizational Structure

The new management structure of Frank’s All-American BarBeQue is a basic functional layout appropriate for this type of business and is shown in Figure 16.5 "Organizational Chart" .

Figure 16.5 Organizational Chart

Personnel Plan

Table 16.6 "Forecasts of Personnel" is a five-year breakdown of the types and costs of personnel.

Table 16.6 Forecasts of Personnel

Financial Plan

Frank’s All-American BarBeQue will be financing the creation of a second restaurant through a combination of private investment and a bank loan. The private investment will raise $160,000, and Frank’s will seek another $175,000 as a two-year loan. These funds will be used to pay for equipment and leasing expenses associated with opening a second restaurant.

Important Assumptions

The assumptions associated with the grow rates of sales each year for the next five years are the keys to the financial planning process. We began with very modest assumptions of 8 percent growth in lunch sales and 5 percent growth in dinner sales. We anticipate fairly vigorous growth in takeout meals (20 percent) and sauces (15 percent). Although these are large growth rates, we do not feel that they are unrealistic.

Key Financial Indicators

Figure 16.6 "Key Financial Indicators" provides historical (2008–2010) and forecasted (2011–2015) values for the key financial indicators.

Figure 16.6 Key Financial Indicators

Breakeven Analysis

In Table 16.7 "Breakeven Analysis" and Figure 16.7 "Breakeven Analysis" , we show the results of our breakeven analysis for Frank’s All-American BarBeQue. The results indicate that with sales of approximately $110,000 each month, Frank’s All-American BarBeQue will break even.

Table 16.7 Breakeven Analysis

Figure 16.7 Breakeven Analysis

Projected Profit and Loss

Our analysis anticipates significant growth in profits in the next five years with the opening of a second Frank’s All-American BarBeQue in Darien. The profit margins should increase from in excess of $850,000 in 2011 to nearly $1,600,000 by 2015 and should be in excess of 20 percent for all five years. A complete analysis of the profit and loss statements is in Table 16.8 "Profit and Loss" . The annual profits are illustrated in Figure 16.8 "Yearly Profits" .

Table 16.8 Profit and Loss

Figure 16.8 Yearly Profits

Projected Cash Flow

Table 16.9 "Cash Flow Forecast" is a five-year forecast of cash flows for Frank’s All-American BarBeQue. The forecast shows extremely strong and positive cash flows for each year.

Table 16.9 Cash Flow Forecast

Projected Balance Sheet

Table 16.10 "Balance Sheet Forecast" is a balance sheet forecast for Frank’s All-American BarBeQue.

Table 16.10 Balance Sheet Forecast

These figures clearly demonstrate that the proposed opening of a second restaurant is more than economically viable; it is an extremely lucrative project that promises to increase the net worth of the firm by 500 percent in five years.

What is an Appendix in a Business Plan?

Appendix is an optional section placed at the end of a document, such as a business plan, which contains additional evidence to support any projections, claims, analysis, decisions, assumptions, trends and other statements made in that document, to avoid clutter in the main body of text.

What is Included in an Appendix of a Business Plan?

Appendix commonly includes charts, photos, resumes, licenses, patents, legal documents and other additional materials that support analysis and claims made in the main body of a business plan document around market, sales, products, operations, team, financials and other key business aspects.

The appendix is the perfect place to showcase a wide range of information, including:

Supporting documentation: References and supporting evidence to substantiate any major projections, claims, statements, decisions, assumptions, analysis, trends and comparisons mentioned throughout the main body of a business plan.
Requested documentation: Information, documents or other materials that were specially requested by the business plan readers (e.g., lenders or investors) but are too large to place in the main body of text.
Additional information: Any other materials or exhibits that will give readers a more complete picture of the business.
Visual aids: Photos, images, illustrations, graphs, charts, flow-charts, organizational charts, resumes.

After reviewing the appendices, the reader should feel satisfied that the statements made throughout the main body of a business plan are backed up by sufficient evidence and that they got even fuller picture of the business.

How Should You Write a Business Plan Appendix? (Insider Tip)

The fastest way to pull the Appendix chapter together is to keep a list of any supporting documents that come to mind while you are in the process of writing the business plan text.

For example, while writing about the location of your business, you may realize the need for a location map of the premises and the closest competitors, demographic analysis, as well as lease agreement documentation.

Recording these items as you think of them will enable you to compile a comprehensive list of appendix materials by the time you finish writing.

Remember to keep copies of the original documents.

Template: 55 Business Plan Appendix Content Samples

For your inspiration, below is a pretty exhaustive list of supporting documentation that typically gets included in the business plan appendix. But please do not feel like you have to include everything from the list. In fact, you definitely shouldn’t!

The purpose of the appendix is to paint a fuller picture of your business by providing helpful supporting information, not to inundate yourself or the readers of your business plan. So, take care to only include what is relevant and necessary .

Company Description

1. Business formation legal documents (e.g., business licenses, articles of incorporation, formation documents, partnership agreements, shareholder agreements)

2. Contracts and legal agreements (e.g., service contracts and maintenance agreements, franchise agreement)

3. Intellectual property (e.g., copyrights, trademark registrations, licenses, patent filings)

4. Other key legal documents pertaining to your business (e.g. permits, NDAs, property and vehicle titles)

5. Proof of commitment from strategic partners (e.g., letters of agreement or support)

6. Dates of key developments in your company’s history

7. Description of insurance coverage (e.g. insurance policies or bids)

Target Market

8. Highlights of relevant industry and market research data, statistics, information, studies and reports collected

9. Results of customer surveys, focus groups and other customer research conducted

10. Customer testimonials

11. Names of any key material customers (if applicable)

Competition

12. List of major competitors

13. Research information collected on your competitors

14. Competitive analysis

Marketing and Sales

15. Branding collateral (e.g., brand identity kit designs, signage, packaging designs)

16. Marketing collateral (e.g., brochures, flyers, advertisements, press releases, other promotional materials)

17. Social media follower numbers

18. Statistics on positive reviews collected on review sites

19. Public relations (e.g., media coverage, publicity initiatives)

20. Promotional plan (e.g., overview, list and calendar of activities)

21. List of locations and facilities (e.g., offices, sales branches, factories)

22. Visual representation of locations and facilities (e.g., photos, blueprints, layout diagrams, floor plans)

23. Location plan and documentation related to selecting your location (e.g., traffic counts, population radius, demographic information)

24. Maps of target market, highlighting competitors in the area

25. Zoning approvals and certificates

26. Detailed sales forecasts

27. Proof of commitment from strategically significant customers (e.g., purchase orders, sales agreements and contracts, letters of intent)

28. Any additional information about the sales team, strategic plan or process

Products and Services

29. Product or service supporting documentation – descriptions, brochures, data sheets, technical specifications, photos, illustrations, sketches or drawings

30. Third-party evaluations, analyses or certifications of the product or service

31. Flow charts and diagrams showing the production process or operational procedures from start to finish

32. Key policies and procedures

33. Technical information (e.g., production equipment details)

34. Dependency on third-party entities (e.g., materials, manufacturing, distribution) – list, description, statistics, contractual terms, rate sheets (e.g., sub-contractors, shippers)

35. Risk analysis for all major parts of the business plan

Management and Team

36. Organizational chart

37. Job descriptions and specifications

38. Resumes of owners, key managers or principals

39. Letters of reference and commendations for key personnel

40. Details regarding human resources procedures and practices (e.g., recruitment, compensation, incentives, training)

41. Staffing plans

42. Key external consultants and advisors (e.g., lawyer, accountant, marketing expert; Board of Advisors)

43. Board of Directors members

44. Plans for business development and expansion

45. Plan for future product releases

46. Plan for research and development (R&D) activities

47. Strategic milestones

48. Prior period financial statements and auditor’s report

49. Financial statements for any associated companies

50. Personal and business income tax returns filed in previous years

51. Financial services institutions’ details (name, location, type of accounts)

52. Supporting information for the financial model projections, for example:

Financial model assumptions
Current and past budget (e.g., sales, marketing, staff, professional services)
Price list and pricing model (e.g., profit margins)
Staff and payroll details
Inventory (e.g., type, age, volume, value)
Owned fixed assets and projected capital expenditure (e.g., land, buildings, equipment, leasehold improvements)
Lease agreements (e.g., leases for business premises, equipment, vehicles)
Recent asset valuations and appraisals
Aged debtor receivable account and creditor payable account summary
Global financial considerations (exchange rates, interest rates, taxes, tariffs, terms, charges, hedging)

53. Debt financing – documentation regarding any loans, mortgages, or other debt related financial obligations

54. Equity financing – capital structure documentation (e.g., capitalization table, 409A, investor term sheets, stock and capital related contracts and agreements)

55. Personal finance – information regarding owners’ capital and collateral (e.g., Personal Worth Statement or Personal Financial Statement, loan guarantees, proof of ownership)

What is bibliography?

A bibliography is a list of external sources used in the process of researching a document, such as a business plan, included at the end of that document, before or after an Appendix. For each source, reference the name of the author, publication and title, the publishing date and a hyperlink.

What are supporting documents included in a business plan appendix?

Supporting documents in a business plan appendix include graphs, charts, images, photos, resumes, analyses, legal documents and other materials that substantiate statements made in a business plan, provide fuller picture of the business, or were specifically requested by the intended reader.

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Appendix: A Sample Business Plan

Executive Summary

Vision Statement

To produce the best barbecue food in New England.

Mission Statement

Keys to Success

The only objective of a restaurant is to serve the finest food it can prepare. Good food—not more gimmicks or advertising—brings in customers and, more importantly, keeps customers.
Preparing the finest foods means a commitment to excellence, which means obtaining the best ingredients and a dedication to cooking barbecue properly, which means cooking carefully and slowly .
In addition to providing the finest food, we remain committed to providing excellent service. To us, this means friendly and knowledgeable staff members who make the customers feel like they are dining with family.
We provide the right atmosphere. Our goal is to have a setting that says “barbecue.” We do not provide a fancy setting; our basic setting complements the food we serve.

Company Summary

Company Ownership

Presently, Frank’s All-American BarBeQue is a limited liability partnership with Frank Rainsford and his wife Betty as owners. Each has a 50 percent share in the business.

To assist the financing of the expansion, Robert Rainsford and Susan Rainsford Rogers will each invest $50,000, while Alice Jacobs will invest $60,000.

The new limited liability partnership will result in the investors holding the following equity percentages:

Company History

Frank’s has won many awards at regional and national barbecue cook-offs (for both the food and the sauces), which is unusual for a barbecue business in New England. The restaurant has been written up, repeatedly, in the local and New York papers for the quality of its food and its four signature barbecue sauces. In the last few years, Frank’s has sold small lots of these sauces in local supermarkets. They have been distributed because of Frank’s personal connections with the store managers. Frank Rainsford has been approached by a major regional supermarket to sell his sauces. The supermarket is willing to find a facility that could produce Frank’s sauces in significantly larger volumes, which would represent a substantial increase in the sales of sauces. “Past Performance of Frank’s All-American BarBeQue” provides a summary of key financial figures for the last three years—2008 to 2010. “Past Performance Chart” illustrates these key numbers for that period of time.

Past Performance of Frank’s All-American BarBeQue

Past Performance Chart

Company Locations and Facilities

Frank’s All-American BarBeQue has been in Fairfield, Connecticut, for decades. It has a reputation throughout the southern Connecticut shore region for excellent food and has received numerous awards. The management team determined that a second location could tap into this local name recognition. Several towns in the region were evaluated for total population, population density, family income, and home value. These factors were considered because of their impact on generating traffic and consumers being able to pay for meals that are priced slightly higher than typical fast-food outlets. In addition, the average family size and the percentage of family households were considered because Frank’s is a family restaurant. Lastly, data were gathered on the average travel time to and from work for residents and the real estate tax rate. Because the new location of Frank’s will emphasize prepared meals, we felt that individuals with longer commutes would be more likely to order meals and pick them up at Frank’s. A summary of these data is provided in “Demographic Data for Selected Connecticut Towns—Part 1” and “Demographic Data for Selected Connecticut Towns—Part 2”.

Demographic Data for Selected Connecticut Towns—Part 1

Demographic Data for Selected Connecticut Towns—Part 2

A specific location has been identified in Darien for the second Frank’s All-American BarBeQue. It is in a small mall and is large enough to have a seating capacity of 150–160 plus takeout facilities. The mall has more than adequate parking for future customers. The mall is located three blocks from the Metro-North Darien railroad station and is four blocks from the I-95 exit. It is therefore well-positioned to attract traffic from both car and rail commuters. The lease fee for a three-year contract is very reasonable for a property of this size.

Products and Services

Our goal is to expand operations to a second location in Darien, Connecticut. This outlet will be significantly larger and will have a section devoted to takeout meals.

Competitive Comparison

Fulfillment

Future Products and Services

Market Analysis Summary

With 925,000 food service locations in operation in the United States, this translates into 1 restaurant for every 330 Americans.

The National Restaurant Association estimated that sales in full-service restaurants in 2010 would exceed $184 billion—an increase of 1.2 percent from 2009 sales.

Several macroeconomic factors make opening a restaurant in Darien attractive, including the following:

Increases in the growth domestic product (GDP). The GDP is estimated to grow 1.7 percent in 2011 and 1.5 percent in 2012. The estimates for Fairfield County are significantly higher.
Disposable personal income. The national level of personal income should rise nearly 4 percent in 2011, and there is an expectation of 3 percent growth in 2012. These numbers appear to be much stronger in the Fairfield County area.

The home meal replacement market and the existing investment in restaurant equipment provide a nice growth opportunity for restaurants. It is been estimated that takeout sales in limited-service chain restaurants might be as large as 60 percent of total sales. The same study found that takeout food has been growing twice as fast as the overall restaurant industry. Natural competitors in this market are supermarkets that offer prepackaged meals. However, we feel that few—if any—supermarkets provide the quality barbecue food that can be found at Frank’s.

Market Segmentation

Frank’s All-American BarBeQue views its major market segment as suburbanites in the south shore region of Connecticut. One way of further segmenting the market is by the type of meal being provided. “Market Analysis 1” provides estimated growth rates for each type of meal (plus sauce sales) and projected number of meals (and jars of sauce) for the period 2011 to 2015. “Market Analysis 2” illustrates the relative contributions.

Market Analysis 1

Market Analysis 2

Market Needs

We believe that the market centers on excellent barbecue food served at reasonable prices and served in a family-friendly manner. We further believe that a growing segment of the market will want prepared meals that can be conveniently picked up and served at home. “Market Analysis” provides a projected breakdown of the potential customers for the next five years. This breakdown is predicated on the type of meals served and includes the sale of sauces. We provide estimated growth rates and forecasted sale of meals (and bottles of sauces) for the period 2011 to 2015. “Market Analysis” shows the breakdown of the number of meals by type in 2015.

Web Plan Summary

Website Marketing Strategy

Development Requirements

Strategy and Implementation Summary

SWOT Analysis

A strengths, weaknesses, opportunities, and threats (SWOT) analysis was undertaken for Frank’s All-American BarBeQue.

Opportunities

Competitive Edge

Marketing Strategy

Sales Forecasts

We provide a five-year forecast of the dollar value of sales broken down by the two restaurants and the sauces in the following tables. “Sales”Monthly Sales for Two Restaurants and Sauces” illustrates a forecast for the breakdown of sales on monthly basis in 2011, and “Five-Year Forecast of Sales for Two Restaurants and Sauces” illustrates the breakdown of sales for the next five years.

Sales Forecast

Monthly Sales for Two Restaurants and Sauces

Five-Year Forecast of Sales for Two Restaurants and Sauces

Management Summary

Organizational Structure

The new management structure of Frank’s All-American BarBeQue is a basic functional layout appropriate for this type of business.

Organizational Chart

Personnel Plan

“Forecasts of Personnel” is a five-year breakdown of the types and costs of personnel.

Forecasts of Personnel

Financial Plan

Important Assumptions

Key Financial Indicators

“Key Financial Indicators” provides historical (2008–2010) and forecasted (2011–2015) values for the key financial indicators.

Breakeven Analysis

In “Breakeven Analysis 1” and “Breakeven Analysis 2”, we show the results of our breakeven analysis for Frank’s All-American BarBeQue. The results indicate that with sales of approximately $110,000 each month, Frank’s All-American BarBeQue will break even.

Breakeven Analysis 1

Breakeven Analysis 2

Projected Profit and Loss

Our analysis anticipates significant growth in profits in the next five years with the opening of a second Frank’s All-American BarBeQue in Darien. The profit margins should increase from in excess of $850,000 in 2011 to nearly $1,600,000 by 2015 and should be in excess of 20 percent for all five years. A complete analysis of the profit and loss statements is in “Profit and Loss”. The annual profits are illustrated in “Yearly Profits”.

Profit and Loss

Yearly Profits

Projected Cash Flow

“Cash Flow Forecast” is a five-year forecast of cash flows for Frank’s All-American BarBeQue. The forecast shows extremely strong and positive cash flows for each year.

Cash Flow Forecast

Projected Balance Sheet

“Balance Sheet Forecast” is a balance sheet forecast for Frank’s All-American BarBeQue.

Balance Sheet Forecast

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What to Include in a Business Plan Appendix

A business plan appendix is the last section that includes all the details that didn’t have a place in the business plan.

Detailed Financial Projections

Customer feedback, intellectual property details, key people & management, lease, contracts, and agreements, market analysis, credit history and credit score, marketing plan details, suggested resources for writing a business plan.

An appendix business plan can be short or lengthy. What goes into an appendix depends on the type of business plan and your goal of writing the business plan.

For example, suppose you are writing a business plan to attract investment. In that case, the appendix may include greater details of the financial projections, and information about your personal or business credit score.

Here, we will discuss appendix meaning in the business plan, what goes into a business plan appendix, how to create an appendix in the business plan, and the best practices you should follow.

What is Included in a Business Plan Appendix?

You might be wondering how to write a business plan appendix. We have made it easy for you. Put data for each of these business sections and your business plan appendix is ready.

You have included the income statement, balance sheet, and P&L statement in the business plan. Investors and lenders might be interested in knowing more about the expected financials of your business.

Add financial reports for intervals like a quarter, bi-annual, or annual.

Free: Income Statement Template

Create a financial statement for your franchise business by downloading our free income statement templates.

Are you an old player in the market and people have already used your products or services? You can include the feedback or review of some of your evangelists in the appendix section of a business plan.

Customer feedback shows the value your product or service offers and the problem it solves. It can also increase your chances of getting investment for your business idea.

If your business has any intellectual property rights, this is the place to add them. You may have a patent, a trademark, a brand name, or a license. Add the verifiable details of your business intellectual property here.

The people section in your business plan included only the top management/owners. Here, you can mention the people with execution skills who are not among the top management but necessary for business success.

You can also add employees’ CVs here. Some investors look at a company’s key people to see if they can make the business idea a financial success. If you have a strong team, show them here.

Some businesses get into contracts with suppliers and vendors in the beginning before they apply for funding. If you are one of them, include any contracts or agreements here.

Did you conduct thorough research on the potential market for your business? The business plan couldn’t host your full market analysis but the appendix can.

Include charts, presentations, documents, or anything else from your market analysis here. You can put all the data you have about your target market in the appendix. Give it a try!

Lenders may be interested in knowing your credit history to see if it is safe to give you a credit line. You can add credit reports here. This will help you build a good rapport with the lenders and may help you secure business credit.

No Credit History and Looking to Build Business Credit?

if you are a small business and looking to buide business credit, Here is a step by step guide on how to build your business credit fast by credit experts.

Many businesses create a very detailed marketing plan. Since you have limited space available in the business plan, an appendix is a place to add your marketing plan details.

Interested in checking the business plan appendix example? See our sample business plan for inspiration.

How to write a company overview for a business plan
How to write a market analysis for a business plan?
How to write products and services section of business plan
How to write an operational plan in business plan?
How to write management team section in business plan
How to write the financial section of a business plan
How to write the marketing plan in business plan

The business plan appendix may include documents such as resumes of key team members, market research data, financial statements, legal agreements, permits and licenses, product or service brochures, and any additional supporting documents relevant to the business.

Not all supporting documents need to be included in the business plan appendix. Include documents that are essential for understanding and validating the information presented in the main body of the business plan.

Organize the documents in the business plan appendix in a logical and coherent manner. Consider using numbered sections or tabs to make it easy for readers to locate specific documents.

Yes, including a table of contents for the business plan appendix can help readers navigate through the various documents and sections. It provides a quick overview of what is included in the appendix.

The business plan appendix is typically included as a separate attachment to the main business plan document. This allows readers to focus on the core content of the business plan while having easy access to the supporting documents in the appendix.

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Everything You Need to Know about the Business Plan Appendix

After taking time in writing a business plan , you want it to be read. That means the body should be no more than 15 pages in length. That’s where the business plan appendix comes in!

The appendix in a business plan is a supplementary section that contains additional information and supporting documents, such as charts, graphs, financial statements, market research, and legal papers, which complement the main body of the plan.

Although the final section of a comprehensive business plan, the appendix is an integral part of your plan. For example, suppose you are using your business plan to attract investors. In that case, the additional documents in the appendix will provide greater insight and can help convince your potential investors that you’ve got a solid business concept. You’ve done the research necessary to support the claims and forecasts included in the other sections of your plan.

In this blog post, we’ll discuss everything you need to know about the business plan appendix so that you can start developing a great appendix for your business plan.

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What is a Business Plan Appendix?

The appendix is used to provide supporting documentation for key components in your business plan, such as financial statements or market research.

The appendix is also a great place to put any other tables or charts you didn’t want to put in the main body of the business plan. Depending on the intended audience of your business plan, you may also want to include additional information such as intellectual property documentation, credit history, resumes, etc.

What is the Purpose of the Business Plan Appendix?

The purpose of the appendix is to provide supporting documentation or evidence for key components in your business plan. While you may include charts in graphs in the body of your plan, these should be summary projections, while the fully detailed charts and tables would be found in the appendix.

How to Write the Business Plan Appendix for Your Company

Several supporting documents should be included in the appendix:

Full Financial Projections

Business plans used to raise capital or loan applications will typically need more detailed projections, including monthly, quarterly and/or annual cash flow statements, balance sheets, and income statements.

Customer Lists

This can be helpful for companies looking to expand their market presence and reach new customers or clients, as well as those who are considering investing capital into your business.

Customer Testimonials

Testimonials from your current customers are a great way to help other investors and lenders feel more confident in investing or loaning money to your business. You can include online reviews, letters, personal email communications, etc.

Intellectual Property Documentation

This should be included if you have any patents or trademarks registered and might also be helpful if you are using any technologies that other businesses have patented.

Management Team

This can include organizational structure, job descriptions, resumes, certifications, advanced degrees (i.e., Master’s degree in a specialized area), etc., that will help establish the expertise and experience that supports your business’s success.

Leases & Customer Contracts

Businesses need to comply with all leases and customer contracts before seeking investors. You may include rental agreements, copies of key agreements, sample customer contracts, etc.

Building & Architectural Designs

Businesses looking to build or expand their operations will need access to building plans, architectural drawings, permits, etc.

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Some small business owners may also include the following documents in the appendix:

Company History and Background

Businesses with a lot of competition in their industry will need to include more detail. Business plans for major businesses should have the company history section last so that you can provide additional information about your competitors or other companies that are relevant to your business plan. Businesses planning on using their business plan as an internal document can use less detail here.

Market Analysis

Your market analysis should include relevant information about how you defined your industry, potential customers and competitors, etc. Include any identifiable risks and assumptions based on your market research.

Individual & Business Credit History

Marketing materials & plan.

For some entrepreneurs, the marketing section of the business plan only provides a brief overview of their marketing strategy. Attaching the complete Marketing Plan in the appendix section of a business plan helps your reader understand if you’ve thought through your target audience, where you should target your marketing efforts, and how you will advertise to them to expand awareness of your brand and sales of your products and/or services.

Best Practices for Your Business Plan Appendix

Table of Contents : If you are including several documents in the business plan appendix, include a table of contents for your reader’s easy reference.
Confidentiality Statement : If you include credit history documents, intellectual property diagrams or applications, or any other legal documents with confidential information, have a Confidentiality Statement within the appendix to remind your readers that they are not to share or discuss the information within your plan without your written consent.
Short & Simple : This business plan section is likely to be skipped unless your reader is looking for specific information to support a claim in your business plan. Think about your intended reader and only include what is necessary to help make your request (e.g., business partner proposal, raise funding, etc.) and support your business plan.

As a business owner, you want to keep your business plan short so that it gets read. The Business Plan Appendix is a great way to include additional information about the preceding sections without adding to the length of your document.

At Growthink, we have 20+ years of experience in developing business plans for a variety of industries. We have 100+ business plan examples for you to use as a guide to help you write your business plan. You can also get our easy-to-use business plan template to help you finish your plan in less than one day.

How to Finish Your Business Plan in 1 Day!

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Other Resources for Writing Your Business Plan

How to Write an Executive Summary
How to Expertly Write the Company Description in Your Business Plan
How to Write the Market Analysis Section of a Business Plan
The Customer Analysis Section of Your Business Plan
Completing the Competitive Analysis Section of Your Business Plan
How to Write the Management Team Section of a Business Plan + Examples
Financial Assumptions and Your Business Plan
How to Create Financial Projections for Your Business Plan
Business Plan Conclusion: Summary & Recap

Business Plan - Appendices

Appendices to the Business Plan

Written by Jason Gordon

Updated at August 5th, 2023

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What is the Appendix to my Business Plan?

Material that adds to the business plan, but doesn't belong in the body. The appendices allow you to include valuable information to your business plan that does not fit neatly within the body of the plan. Generally, it is used to include exemplars of the material or information that is referenced within the business plan but does not need to be included in the body. You can include material that will serve a functional purpose in the business or that evidence key relationships. Generally, you can include any outside information necessary to support the propositions or assumptions within the business plan.

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Consider including the following information or materials in the appendix of the business plan.

Marketing Material (Advertising) - The ability to drive sales is a critical part of the business plan. Providing samples of marketing material can provide an understanding of the brand that you are attempting to build around your product or service.
Primary and Secondary Research - In order to effectively market your product (and establish a brand) you have to understand your target market. Further, you will need market estimates in order to accurately evaluate the market potential and potential profit from pursuing the venture. This material should support the figures that you introduce within the business plan.
Designs or Property Layout Material - Perhaps you have designs, artwork, facility plans, etc., that provide a picture of your intended venture location, buildings, image. This can help third parties to understand your vision.
Important Contracts - Providing proof of key contracts (such as leases, supplier contracts, etc.) add substance to otherwise seemingly hypothetical plans. Again, this will provide comfort to potential their-party investors.
List of Key Assets - Providing a list of key assets within the business plan would be too large and cumbersome. While you will include the collective value of the assets within the plan, it may be a good idea to attach an itemized index for review. This can help in budget planning.
Organization Chart and Employee Backgrounds - Within the business plan you provide a concise background of your employees and an organizational chart. Here, can provide a more in-depth background on your key employees and their curriculum vitae. If you have many other employees, you may want to provide their backgrounds, key roles, and responsibilities.
Customer or Expert Endorsements - Customer or expert endorsements can serve as excellent credibility for your product/service. While you will mention these or provide brief quotations within the business plan body, you may wish to include the entirety of the endorsement or letter within the appendix.

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Appendix 3 WRITING A WINNING BUSINESS PLAN
58 Top Pictures Business Plan Appendices Example
APPENDIX I REPORTS AND PLANS FORMATS
American Apparel Business Plan
Appendix Example Images / Appendix Example Images : Appendicitis
Appendix For Business Plan Example

VIDEO

6 Proven Tips to Create the Best Business Proposal
யாருக்கெல்லாம் appendix பிரச்சனை வரும்?
DIET PLAN FOR APPENDIX
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Very Simple Treatment For Appendix

COMMENTS

What Is a Business Justification Example?
A business justification is a justification for a proposed business venture or expense. Usually in written form, the document is often included in business plans created as part of a loan application.
What Is an Example of a Corrective Action Plan?
An employee corrective action plan, also known as a performance improvement plan or a disciplinary action form, is a written document outlining an employee’s unsatisfactory work or behavior.
How to Write an Invoice
If you’re planning to start a business, you may find that you’re going to need to learn to write an invoice. For example, maybe you provide lawn maintenance or pool cleaning services to a customer.
What to Include in Your Business Plan Appendix
The appendix of a business plan is the place to include any additional documents that you want to use to give your reader a feel for your product, marketing
Business Plan Section 9: Appendix
What Goes Into Business Plan Appendix? · Credit histories for both the business and its owners · Business and personal tax returns · Resumes of the owners and key
Chapter 16: Appendix: A Sample Business Plan
We believe that the market centers on excellent barbecue food served at reasonable prices and served in a family-friendly manner. We further believe that a
Appendix 16 Sample Business Plan
Because the decision-making process to select a permit holder requires considerable review of the application and business plan, the required information
The Ultimate Guide to Your Business Plan Appendix
Your appendix is a supplementary final section of your business plan that provides additional documentation and validation that your business plan is on point.
Business Plan Appendix Template: 55 Examples of What to Include
Appendix commonly includes charts, photos, resumes, licenses, patents, legal documents and other additional materials that support analysis and claims made in
Appendix A
Appendix: A Sample Business Plan · Products and Services. Frank's All-American BarBeQue specializes in the finest barbecue served in a family-friendly format.
Business Plan Appendix
A business plan appendix is the last section that includes all the details that didn't have a place in the business plan. · An appendix business
Business Plan Appendix: Everything You Need to Know ...
The appendix in a business plan is a supplementary section that contains additional information and supporting documents, such as charts, graphs, financial
Business Plan
What is the Appendix to my Business Plan? Material that adds to the business plan, but doesn't belong in the body. The appendices allow you to
What to Include in Your Business Plan Appendix Section
... business plan by attaching the necessary Supporting Documents and References. Our Free Business Plan Template to help you get started: https

What Is an Example of a Corrective Action Plan?

How to Write an Invoice

Consider a Customized Template

Start with Your Contact Information

Give It Dates and Invoice Number

Add the Customer’s Contact Information

Add the Services, Products, Prices and Quantities

Total It Up and Add Any Additional Information

What goes in the appendix of a business plan?

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Business Plan Section 9: Appendix

What Goes Into Business Plan Appendix?

How to Organize a Business Plan Appendix

Business Plan Recap

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Chapter 16 Appendix: A Sample Business Plan

16.1 Executive Summary

Vision Statement

Mission Statement

Keys to Success

Company Summary

Company Ownership

Company History

Company Locations and Facilities

Products and Services

Competitive Comparison

Fulfillment

Future Products and Services

Market Analysis Summary

Market Segmentation

Market Needs

Web Plan Summary

Website Marketing Strategy

Development Requirements

Strategy and Implementation Summary

SWOT Analysis

Opportunities

Competitive Edge

Marketing Strategy

Sales Forecasts

Management Summary

Organizational Structure

Personnel Plan

Financial Plan

Important Assumptions

Key Financial Indicators

Breakeven Analysis

Projected Profit and Loss

Projected Cash Flow

Projected Balance Sheet

What is an Appendix in a Business Plan?

What is Included in an Appendix of a Business Plan?

How Should You Write a Business Plan Appendix? (Insider Tip)

Template: 55 Business Plan Appendix Content Samples

Company Description

Target Market

Competition

Marketing and Sales

Products and Services

Management and Team

Related Questions

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What are supporting documents included in a business plan appendix?

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Appendix: A Sample Business Plan

Executive Summary

Vision Statement

Mission Statement

Keys to Success

Company Summary

Company Ownership

Company History

Company Locations and Facilities

Products and Services

Competitive Comparison

Fulfillment

Future Products and Services