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Business Plan: Presenting Your Plan

The Appendix

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Thank you for your interest in our services! There is also flexibility in the order in which you present your plan, outside of putting the Title Page, Table of Contents and Executive Summary at the beginning, in that order, and the Appendix at the very end.

Present your information in a logical order, but be aware that financiers are likely to skip around and read the information in the order that best suits their purposes rather than reading the plan from cover to cover. An editor will make sure that the tone of your business plan is appropriate — formal, but easy to understand.

He or she will also make sure there are no spelling or grammar errors. Overall, a professional editor will make the plan more readable and make sure your message is presented clearly and concisely.

Your plan must have a formal layout with consistent formatting. It should use visual aids where appropriate, but any graphics you include must be relevant and professional — think charts, graphs and tables presenting pertinent data, and photos of your actual business, not stock photos.

Hire a professional graphic designer to give your plan a polished look: Including an appendix section in your business plan allows you to supplement the information provided in the main sections.

For example, while you should have provided descriptions of your professional background and the professional backgrounds of your management team and key employees in the main document, you should save full resumes for the Appendix.

Your appendix could also include letters of reference from individuals familiar with your business performance, such as former bosses and high-level co-workers; additional details from your market research; legal documents such as your business license, articles of incorporation, and the lease or purchase agreement for the building you will operate out of, and more.

You might also need the most recent two to three years of tax returns for each owner if your business is new, or the returns for your business if it is already established. Because of the sensitive data that tax returns contain, you should find out if they are required before you include them. If they are, thoroughly block out Social Security and business tax ID numbers.

Finally, anything else you think is important enough to be part of the business plan but too cumbersome to include in the main document can go in the appendix. If you have excelled in putting together your written business plan, you will have a chance to make your case on the phone, by video conference or in person. You must be thoroughly prepared to make a positive and lasting personal impression and a strong argument for your business. How will you accomplish this? First, practice your pitch.

Even though the potential backer should have looked at your business plan by this point, you should still prepare a short summary speech that highlights the points you made in your Executive Summary.

That way, you will hit all of the important points but sound sincere in your delivery. You may even want to join a public speaking club, such as Toastmasters, to practice your speaking and presentation skills ahead of time and get constructive feedback. Brainstorm questions that the person or group you are meeting with is likely to ask you, and prepare answers to those questions. A common mistake business owners make is to get feedback only from friends and relatives.

Even if you have less-sympathetic, brutally honest friends and relatives — even ones who are totally skeptical that your idea has any merit — they may not understand your idea from a business or investment perspective, and thus will not be able to provide the kind of feedback you really need. Further, to have a successful business plan presentation, you must thoroughly understand the basic financials included in your plan. How much money are you contributing to the business?

How much financing are you requesting? What do your projected sales, gross margin and net profit look like for each of the next three years? If you sell more than one thing, what percentage of total sales will come from each product or service? By when will you be able to repay the loan or implement an exit strategy for investors? Bring other members of your management team onto the call or into the meeting to strengthen your presentation and compensate for any weaknesses you may have.

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