sample appendix for a business plan

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)

Related Questions

How do you finish a business plan.

Business plan is finished by summarizing the highlights of the plan in an Executive Summary section located at the beginning of the document. The business plan document itself is finished by an Appendix section that contains supporting documentation and references for the main body of the document.

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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What to Include in Your Business Plan Appendix

Candice Landau

4 min. read

Updated July 11, 2024

While not required, a well-structured business plan appendix goes a long way toward convincing lenders and investors that you have a great business idea and a viable business.

This article will cover what should be part of the appendix in your business plan and best practices for making it a useful part of your business plan . 

• What is a business plan appendix?

A business plan appendix provides supporting documentation for the other sections of your business plan .  

The appendix for business plans typically comes last and includes any additional documents, spreadsheets, tables, or charts that don’t fit within the main sections of your plan. 

What goes in the appendix of a business plan?

In general, here is some of the information you might include in your business plan appendix:

• Charts, graphs, or tables that support sections of your business plan
• Financial statements and projections
• Sales and marketing materials
• Executive team resumes
• Credit history
• Business and/or personal tax returns
• Agreements or contracts with clients or vendors
• Licenses, permits , patents, and trademark documentation
• Product illustrations or product packaging samples
• Building permit and equipment lease documentation
• Contact information for attorneys , accountants, and advisors

You may include some, all, or none of these documents in your business plan appendix. It depends on your business needs and who you share your business plan with. 

Tip: Like your executive summary , adjusting what’s in your business plan appendix may be helpful based on the intended audience. For example, if you’re applying for a loan, you may add financial statements from the past 2-5 years to show how your business has performed.

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Business plan appendix best practices

Here are a few tips to help you create an appendix for your business plan.

Make it easy to navigate

If your business plan appendix is more than a few pages long or contains a variety of documents, you may want to consider adding a separate table of contents.

Don’t forget security

If you 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 share should not be distributed or discussed beyond the agreed parties. You can include it as a separate page or as part of your business plan cover page .

Make the appendix in your business plan work as a separate document

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 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 business model ? If the answer is no, you may need to rethink some things.

Connect the appendix to sections of your business plan

Make sure that anything you include in the business plan appendix is relevant to the rest of your business plan. It should not be unrelated to the materials you’ve already covered. 

It can be useful to reference which section of your plan the information in your appendix supports. Use footnotes, or if it’s digital, provide links to other areas of your business plan.

Keep it simple

This is good general advice for your entire business plan. 

Keep it short. 

You don’t need to include everything. Focus on the relevant information that will give your reader greater insight into your business or more detailed financial information that will supplement your financial plan.

Free business plan template with appendix example

Remember, your appendix is an optional supporting section of your business plan. Don’t get too hung up on what to include. You can flag documents and information you believe are worth including in your appendix as you write your plan . 

Need help creating your business plan? 

Download our free fill-in-the-blank business plan template with a pre-structured format for your appendix. 

And to understand what you should include based on your industry—check out our library of over 550 business plan examples .

Business plan appendix FAQ

How do you write an appendix for a business plan?

Gather relevant documents like financial statements, team resumes, and legal permits. Organize them logically, possibly mirroring your business plan’s structure. If long, include a table of contents, ensure each item is relevant, and focus on keeping it simple. If you’re sharing sensitive information, add a confidentiality statement.

Why is a business plan appendix important?

An appendix in your business plan provides supporting evidence for your business plan. It keeps your main plan more concise, enhances credibility with additional data, and can house all-important business documents associated with your business.

What additional information would appear in the appendix of the business plan?

The following can appear in your business plan appendix:

• Financial projections
• Marketing materials
• Team resumes
• Legal documents (like permits and patents)
• Product details (like prototypes and packaging)
• Operational documents (like building permits)
• Professional contact information. 

Candice Landau is a marketing consultant with a background in web design and copywriting. She specializes in content strategy, copywriting, website design, and digital marketing for a wide-range of clients including digital marketing agencies and nonprofits.

Table of Contents

• What goes in the appendix?
• Best practices
• Free template

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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.

Download our Ultimate Business Plan Template here

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

If you don’t have much experience with business credit or borrowing, it might be worth adding a short explanation of your current and past financing use, including your tax returns and incorporation papers. This is especially helpful if you plan to apply for a loan through the Small Business Administration (SBA).

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.

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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

Other Helpful Business Plan Articles & Templates

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What to include in a Business Plan Appendix?

Business Plan Template

• May 2, 2024

A business plan appendix is a great way to add depth to your business plan without making it unbearably long and boring.

However, not everyone needs it. And even when you do, it’s important to understand what this section entails and how you can make it useful.

Well, we will figure that out in this blog post.

But before that, what exactly is an appendix in a business plan?

What is a business plan appendix?

A business plan appendix is the last section of your business plan that contains supplementary information and documents to support the claims your plan makes.

This may include a couple of technical documents, detailed financial statements, charts, spreadsheets, and other additional documents that were too detailed or extensive to include within the main sections.

It’s like a reference point for readers who want to gather detailed insights about the information you presented in your business plan.

Let’s understand what the business plan appendix includes in brief detail:

What to include in the appendix of a business plan?

Depending on your business needs and the intended audience for your business plan, the appendix section may include some of these documents.

• Supplementary information
• Legal documents
• Organizational and personnel details
• Additional financial documents
• Achievements and testimonials

Let’s understand what the appendix business plan includes in brief detail:

1. Supplementary information

Here, you can include documents to support and elaborate on some information mentioned in other sections of your business plan.

Some examples of supplementary information include,

• Charts, graphs, and tables used in the analysis
• Sales and marketing material
• Website and social media documentation
• Raw data, research methods, and research protocols
• Questionnaires and survey instruments
• Product blueprints and images
• Technical and user documentation
• Detailed competitor analysis
• Property designs

2. Legal documents

Adding legal and compliance documents to your appendix will demonstrate your adherence to regulations and legal standards. Such transparency will help win the trust of your stakeholders and potential investors.

Here are a few examples of the kinds of legal documents you can add.

• Incorporation papers
• Licenses and Permits
• Intellectual properties, i.e. trademarks, copyright, patents.
• Building permits and rental agreements
• Supplier and vendor contracts
• Equipment documentation
• Stock certificates

3. Organizational and personnel details

In this section, you will offer information that will let readers have a peek into the workings of your company and the people behind it. Some of these documents include

• Organizational chart
• Job descriptions and hiring procedures
• Resumes for executive positions
• Certifications and degrees
• Affiliates such as attorneys or accountants

4. Additional financial documents

The main body of your financial plan already includes adequate financial information. However, depending on your audience, they might need access to certain additional information such as:

• List of assets within the business
• Credit history
• Business and personal tax returns
• Spreadsheets of financial projections
• Historical and current financial statements
• Equity structure and debt repayment plan
• SBA (Small Business Administration) loan agreements and business loans.

5. Achievements and testimonials

Lastly, you can include proof of achievements that can help establish your brand’s credibility and performance. This is a great place to highlight:

• Media and press clippings
• Testimonials and success stories
• Expert endorsements
• Awards and achievements

And those are pretty much all the things you will include in your plan. Let’s now create an appendix suited for your business plan.

Tips and best practices for business plan appendix

Before you kickstart writing your appendix, we have a few tips to help you make this section more enriching.

1. Make it scannable

Keep the contents of your appendix simple and easy to navigate. If you are planning to add a variety of documents,  consider adding a table of contents to help readers find what they need easily.

2. Relate to the business plan

Everything you include in your appendix should be relevant to the contents and elements of your business plan .

You can add footnotes or a link by referencing the supplementary documents to the business plan information it supports.

3. Include the confidentiality statement

If you are adding financial statements or any legally classified information, add a confidentiality statement. This is an effective way of ensuring that the parties with access to confidential information don’t share it with anyone else.

4. Keep the appendix supplementary

When you write a business plan ensure that the document stands on its own without relying on the appendix. Your readers are likely to skip this section, so you don’t want to risk having inadequate information in the main body.

Your appendix should only cover supplementary and supporting information, not any core detail that the reader must quintessentially know.

Start preparing your business plan with the appendix

Now, don’t get caught up trying to figure out what to include in your appendix. Focus on writing your business plan, and you will eventually get a gist of supporting documents essential for your plan.

However, what if you need help writing your business plan in the first place? In that case, a business planning app or sample business plans would help.

For instance, Upmetrics’ AI business plan generator can help create compelling business plans from scratch in less than 10 minutes.

All you have to do is answer some tailored business questions, and an AI assistant will do everything else for you.

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Frequently Asked Questions

Is the appendix important in a business plan.

Yes, the appendix is an important section of your business plan. Although it’s not compulsory, adding an appendix will help your investors and other audiences gather the required information in in-depth detail. An appendix helps you prove the viability of claims made in different sections of your plan.

How do you write an appendix for a business plan?

Follow these steps to write your appendix section:

• Gather all the supplementary documents you want to include in this section.
• Organize them logically based on the structure of your plan or their content nature, i.e. financial documents, legal documents, marketing materials, etc.
• Label the documents and present them neatly in a professional stack without creating clutter.
• Add footnotes and links to the relevant business plan sections and create a table of contents to make the information easily scannable.

Do I need a table of contents for the appendix?

It’s recommended to have a table of contents especially if you are adding multiple long documents supporting different sections of your business plan information.

Are there any online resources for creating a business plan appendix?

Business plan templates are the best resources for creating a clear and impactful appendix section. Most business plan templates online have a section for appendix which can be easily edited to suit your needs.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Five Best Practices for Creating a Business Plan Appendix

A business plan is formed by several main sections, with the appendix tying the plan into one cohesive document as its final component. Some business plans forgo this valuable section and overlook the additional benefits it may bring during and after business plan creation.

Let’s understand the contributions and importance of appendices in business plans. After this article you will never ask yourself, how to write appendix, what is the purpose of an appendix, or a business plan appendix example. Here are all the things one needs to know in crafting and using a business plan appendix to its full potential:

What is a Business Plan Appendix?

The appendix in business plans is a supporting and final section that additionally corroborates and validates the main points of the plan. Businesses incorporate this section with legal documents, research findings, or visual representations that ensure business plan readers of the credibility and accuracy of information presented in the business plan. These are materials that enhance the value of the business plan but may not cleanly fit in with the body of the plan.

What is the Purpose of the Appendix?

If the business plan body narrates to tell a business’s story, the appendix substantiates that story by laying out evidence through data-driven information. Well-organized supporting documents in a business plan verify that a business’s strategies are practical and actionable. The business plan appendices further create clarity to the facts narrated in the business plan, allowing readers to easily read without the constant need to search for proof to confirm the presented data. 

What Goes in the Appendix of a Business Plan?

The materials and documents included in the appendix may vary depending on a business’s activities. The following are some information that the appendix document includes to provide substantial support to a business plan:

• Comprehensive market research findings
• Detailed financial projections
• Customer directory
• Client or vendor contracts and agreements
• Product images or packaging samples
• Property designs, building permits, and lease documents
• Intellectual property documents and other permits and licenses
• Organizational Chart and resumes for qualifications
• Credit records
• Marketing material
• Supplementary charts, graphs, and tables to support data in the business plan

Key Points in Organizing a Business Plan Appendix

Now that we know the potential components and the importance of a business plan appendix, let’s explore some guidelines to consider when sorting an appendix for a business plan:

Streamline the Appendix: For appendices that span for multiple pages, at ten or more pages for example, it is ideal to add a separate table of contents to outline its components. The appendix table of contents guides readers on what information to expect in the section. Documents and materials in the appendix section should also be organized in the same order they are referred to in the business plan body.

Maintain Confidentiality: License applications, permits, and credit records are some of the documents that are classified as confidential information. A business should keep track of the people who have access to such information as they are shared in the business plan. Including a confidentiality statement will inform readers and remind them that content shared in the business plan should not be used, spread, or discussed without written consent from agreed parties.

Some Will Not Read the Business Plan and Focus Only in the Appendix: The appendix showcases a business’s complete financial projections and proof of legal compliance through permits and licenses. As such, interested parties may only look into a business’s profitability and ability to comply with existing standards and regulations. A comprehensive appendix in the business plan demonstrates the extent a business will put effort to ensure the viability of its success. Furthermore, all the information included in the appendix will help a business stay on track with its progress and fulfill its goals.

Design Equals Content:  The presentation of the appendices is of utmost importance in the business plan. Even if good data and analysis are incorporated in the business plan, an unorganized presentation may lead to misrepresentations and negative assumptions. Adapting a solid business plan outline helps organize the appendices into a document that substantiates factual and clear information.

Keep It Short and Simple: An appendix should only include relevant information about a business to keep it concise. For example, the business plan’s financial plan should be supported with additional financial projections in the appendices. Not every little detail should be included, but the information should offer business plan readers valuable insights into the business.

The appendix serves as the last piece of the puzzle for a business plan. We’ve discussed the importance of appendix and the value it adds to a business plan. However, keep in mind that a business plan should be able to stand alone even without an appendix, as its main purpose is to answer the queries and demands of its readers. The appendix serves as a supplementary section and its absence should not create gaps within a business plan. 

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Business Plan Appendix

Appendix 

The Business Plan Appendix is a valuable section that can enhance your business plan’s credibility by showing the reader a well-structured and thorough consideration of your business idea. While not required, including a well-written appendix can leave a strong impression on your reader. The Appendix should contain any extra documents which give your audience a better understanding of the product.

Some of these documents include the following:

• Visual aids:

Include charts, graphs, or tables that show a representation information discussed in other sections of your business plan.

• Client and vendor agreements:

Attach any relevant contracts or agreements you have with clients or vendors to demonstrate the credibility and depth of your business relationships.

• Legal documentation:

Include licenses, permits, patents, and trademark documents that validate your business’s legal compliance and intellectual property protections.

• Product visuals:

Incorporate illustrations or samples of your product’s packaging to provide a visual representation of its design and appeal.

• Marketing materials:

Include samples of your marketing materials to showcase your promotional strategies and brand positioning.

• Executive team resumes:

Attach resumes or biographies for each member of your executive team to highlight their qualifications, expertise, and contributions to the business.

• Building permits and equipment leases:

Attach documentation related to building permits and equipment leases to demonstrate your business’s compliance with regulations and operational requirements.

• Contact information:

Provide contact details for your legal advisors, accountants, and other professional advisors who play a crucial role in supporting your business’s success.

• Credit history:

Include a summary of your credit history or relevant financial information to showcase your business’s financial stability and credibility.

• Market studies:

Include detailed market studies that offer comprehensive insights into your target market, competition, consumer behavior, and growth potential.

Including these documents in the appendix section of your business plan, you can present a well-rounded and evidence supported case for the commercial viability and potential success of your business idea.

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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What to Include in Your Business Plan Appendix?

Back to Business Plans

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on September 13, 2023

Launching a business involves countless tasks, and one of the crucial early hurdles is writing a business plan. Many entrepreneurs who aren’t looking for funding think they can skip this step, but that’s never a good idea. 

A sharp business plan is essentially a business owner’s commitment to and preparation for the road ahead, and if you’re seeking funding from an investor or lender, having a comprehensive appendix of documents that support your plan can really provide a boost.

But what documents should you include? Lucky for you, this guide explains the key elements of a business plan appendix.

• The Role of the Appendix in the Business Plan

In your business plan, you likely made many claims about various aspects of your business, and the appendix provides documentation to back up those claims. 

Of course, if your reader actually gets to your appendix, you’ve done well and captured their interest. Be sure to only include documents that support your business plan claims.

• Components of the Business Plan Appendix

The following components should be included if you have them, which depends on the stage of your business.

1. Financial Projections

In the body of your business plan, you summarized your financial projections and mentioned the highlights, but your appendix should provide your full financial calculations and spreadsheets. 

These should include:

• Profit and Loss Statement , also known as an income statement. This shows projected revenue and lists all costs, which are then deducted to show net profit or loss. 
• Cash Flow Statement. This shows how much cash you have on hand at any given time. It will have a starting balance, projections of cash coming in, and cash going out, which will be used to calculate cash on hand at the end of the reporting period.
• Balance Sheet. This shows the net worth of the business, which is the assets of the business minus debts. Assets include equipment, cash, accounts receivables, inventory, and more. Debts include outstanding loan balances and accounts payable.

Provide monthly projected versions of each statement for the first year, then annual projections for the following two years. You should also include a chart of your break-even analysis.

If you’ve already been running your business and have made sales, include your financial statements to date.

2. Market Research and Analysis 

If you have charts and graphs that support the market analysis of your business plan, include those as well. Also include any market information, such as market reports, that you used to do your market analysis.

Provide documentation about your target market , such as its size and demographics. If you’ve made a detailed profile of your target customer, create an infographic and include it as well.

3. Intellectual Property Documentation

If you have a patent, trademark , or copyright, include documentation of that intellectual property. Investors tend to appreciate patents, and will likely want to see them.

Include a brief history of when and how you obtained the patent or other intellectual property and how it benefits your business.

4. Legal Documents

Include your business entity documents, such as your articles of organization if you’ve formed an LLC, and your operating agreement . If you have agreements with suppliers or vendors, you can also include those. Documentation of any licenses and permits you’ve obtained should also be included, as well as any other legal documents pertaining to your business.

5. Resumes and Professional Biographies

Attach the resumes of founders and managers here or create professional biographies. Be sure to include all relevant experience, education, and achievements. Investors are very interested in the management team’s ability to execute the plan, so don’t skip this part.

6. Marketing Plan

If you’ve already created a full marketing plan, which is a good idea, include it here as well. How you’re going to get your product to market is critical, so having a detailed marketing plan will support the marketing summary in your business plan .

7. Customer Contracts

If you’re fortunate enough to have secured large customer contracts, include those as well.

8. Product Illustrations

If your product is in development, include an illustration of the design. If you’re manufacturing the product, provide an illustration of the manufacturing process.

• Tips for Creating a Strong Business Plan Appendix 

There are a few things to keep in mind when putting together your business plan appendix.

• Be selective and relevant – don’t overload the reader with too much information.
• Include anything that highlights the key points of your business plan.
• Be clear and concise. Keep your documents short and to the point.
• Use illustrations such as infographics and charts when possible.

If you’ve written a business plan that captures a potential investor’s interest enough to keep them reading all the way to the end, you’ve done great work. Now give them the cherry on top with a fantastic appendix that provides all the documentation to support your plans’ primary assertions. 

Keep it relatively short, but make it strong enough to make the reader a true believer. With any luck, you’ll get the funding you need to put your business on the road to serious success! 

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What to Include in a Business Plan Appendix

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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 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. 

Detailed Financial Projections

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. 

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Free: income statement template.

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

Customer Feedback

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.

Intellectual Property Details

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. 

Key People & Management

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. 

Lease, Contracts, and Agreements

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.

Market analysis

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!

Credit History and Credit Score

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.

Marketing Plan Details

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. 

Suggested Resources for Writing a Business Plan

• 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

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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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What Is an Appendix in a Business Plan?

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What are the components of a good business plan, how to simply write a business plan for a loan.

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It's doubtful that Violet Fane was referring to an appendix in a business plan when she wrote that “all things come to those who wait.” After all, Lady Mary Montgomerie Currie – as she was formally known – was an English poet who made her mark in the late 1800s. Then again, small-business owners wrote business plans during her lifetime, and her oft-repeated phrase captures almost perfectly the bounty of information that can be found at the very end of what is usually a lengthy document.

">For the Body, Stick to Your Business Plan

While you're not obligated to include an appendix in your business plan, it's difficult to imagine a plan without one. This is the section that includes all the supporting documents that will substantiate, clarify and help your readers visualize points that you make in your business plan.

These documents are crucial, but they make up the very last section of a business plan for good reason: Tucking them into the actual business plan could distract your readers from the primary points you're trying to make in the body of your report. As ancillary information, they would interrupt the natural flow of the narrative.

An Appendix in a Business Plan Affords Choices

Emphasize the best accomplishments and most notable achievements of your management team in this section of your business plan. Then, at some point early in this section, you can place a parenthetical reference to the inclusion of their resumes. For example: “See Appendix, page XX, for management team resumes.”

This way, your business plan will stand on its own merits. The reader can decide for himself whether to:

• Keep reading the business plan, uninterrupted. Stop reading the plan temporarily so he can jump to the pertinent page in the appendix. Read the entire appendix, or parts of it, when he is done reading the business plan.* Skip the appendix altogether.

Skipping Should Be an Option

As difficult as this last scenario may be to contemplate, the possibility definitely exists. As the business plan creator – The most important thing to remember – is that you fulfill your role to the best of your ability: You must present a thoughtful, comprehensive business plan that anticipates and addresses the reader's questions.

The reader should be able to skip the appendix without encountering any gaps in understanding. The information he will find there is intended to be supplementary – not perfunctory.

The reader may also be guided by his interests or motivations – and will make his decision accordingly. For example, an attorney may actively read the appendix to scour patent and trademark information. A lender may not find this information as compelling as a business' credit history. In this instance, the appendix could end up being the very first thing he reads.

Consider Business Appendix Examples

When an appendix is thoughtfully and creatively presented, it can be the most entertaining part of a business plan, exactly as Lady Mary had suggested.

Content should always be your guide, just as surely as you should include copies rather than original documents in the appendix. Consider your options, which depend on the content in your business plan:

• Building permits.
• Charts and graphs.
• Competitor information.
• Credit reports.
• Equipment documentation.
• Incorporation papers.
• Leases or rental agreements.
• Legal documents.
• Letters of recommendation.
• Licenses, permits, trademarks and patents.
• List of business affiliates, such as your accountant and attorney.
• Marketing reports and studies.
• Pending contracts.
• Pictures or illustrations of your product line.
• Press clippings, feature articles and other media coverage.
• Spreadsheets.
• Tax returns.
• Vendor agreements.

Streamline the Appendix in Your Business Plan

If your appendix becomes robust – say, more than 10 pages long – it might be helpful to create a table of contents on a preceding page to guide your readers through it. And if you're worried about confidentiality, it might be wise to include a privacy statement that reminds readers that they are not authorized to distribute copies of your business plan to third parties.

All good things may indeed come to those who wait – or at least those who ask for permission first.

• The Phrase Finder
• U.S. Small Business Administration: Write your business plan
• Bplans: What to Include in Your Business Plan Appendix

Mary Wroblewski earned a master's degree with high honors in communications and has worked as a reporter and editor in two Chicago newsrooms. Then she launched her own small business, which specialized in assisting small business owners with “all things marketing” – from drafting a marketing plan and writing website copy to crafting media plans and developing email campaigns. Mary writes extensively about small business issues and especially “all things marketing.”

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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.

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Appendix of a Business Plan

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APPENDICES OF A BUSINESS PLAN

The appendices section of your business plan is used to provide readers with information and documents that support your claims made throughout the business plan. Many entrepreneurs neglect to develop this section, thinking that bankers and other investors will never read it. In realty through, most investors want to see the information sources used by the business plan writer/entrepreneur.

By creating a well organized and thoughtout appendices, you are ultimately enhancing your credibility as a person and an entrepreneur. And you must be a creditable source before an investor will trust you with their money.

The documents placed in your appendices may include, but not restricted to, the following items:

• demographic information and statistics,
• weighted average selling price calculations,
• weighted average product cost calculations,
• charts and diagrams to better illustrate and/or compare variables,
• sample of advertisements or publicity ads,
• partnership agreement (if establishing a partnership),
• resumes of each owner and key management personnel,
• product pictures, photograph, blue print, etc.....
• map of area where your planned business venture will operate,
• floor plan of facility or production plant,
• detailed budgets for marketing expenses and administrative expenses,
• detailed pricing schedule,
• patent, copyright, and/or trademark confirmation,
• supplier's letters of intent,
• clippings from newspapers articles etc, supporting any claims made,
• personal credit report of owner(s),
• personal balance sheet (assets and liabilities) of owners,
• customer letters of intent (customers willing to buy your product),
• letters of intent from future shareholders or investors,
• survey or questionnaire along with results,
• organizational chart,
• market research reports,
• detailed technical descriptions of product or service,
• leasing agreements,
• letters patent,
• personal references (past employers, banks, other professionals),
• consultants reports, and
• any other information relevant to your particular business venture.

TWO FINAL NOTES:

-    Be sure to make reference, in the body of your business plan, to each appendices item. Don't include a document or other information sources in the appendices just to occupy space. If its needed include it; if it's not needed exclude it.

-    Be sure to prepare a table of contents for your appendices. This will provide the reader with a quick view of your appendix items. Organize your appendices' table of contents in the order in which they are referred to in the body of the business plan.

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Business Plan Executive Summary Example & Template

Updated: Jun 3, 2024, 1:03pm

Table of Contents

Components of an executive summary, how to write an executive summary, example of an executive summary, frequently asked questions.

A business plan is a document that you create that outlines your company’s objectives and how you plan to meet those objectives. Every business plan has key sections such as management and marketing. It should also have an executive summary, which is a synopsis of each of the plan sections in a one- to two-page overview. This guide will help you create an executive summary for your business plan that is comprehensive while being concise.

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The executive summary should mimic the sections found in the business plan . It is just a more concise way of stating what’s in the plan so that a reader can get a broad overview of what to expect.

State the company’s mission statement and provide a few sentences on what the company’s purpose is.

Company History and Management

This section describes the basics of where the company is located, how long it has been in operation, who is running it and what their level of experience is. Remember that this is a summary and that you’ll expand on management experience within the business plan itself. But the reader should know the basics of the company structure and who is running the company from this section.

Products or Services

This section tells the reader what the product or service of the company is. Every company does something. This is where you outline exactly what you do and how you solve a problem for the consumer.

This is an important section that summarizes how large the market is for the product or service. In the business plan, you’ll do a complete market analysis. Here, you will write the key takeaways that show that you have the potential to grow the business because there are consumers in the market for it.

Competitive Advantages

This is where you will summarize what makes you better than the competitors. Identify key strengths that will be reasons why consumers will choose you over another company.

Financial Projections

This is where you estimate the sales projections for the first years in business. At a minimum, you should have at least one year’s projections, but it may be better to have three to five years if you can project that far ahead.

Startup Financing Requirements

This states what it will cost to get the company launched and running. You may tackle this as a first-year requirement or if you have made further projections, look at two to three years of cost needs.

The executive summary is found at the start of the business plan, even though it is a summary of the plan. However, you should write the executive summary last. Writing the summary once you have done the work and written the business plan will be easier. After all, it is a summary of what is in the plan. Keep the executive summary limited to two pages so that it doesn’t take someone a long time to peruse what the summary says.

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It might be easier to write an executive summary if you know what to expect. Here is an example of an executive summary that you can use as a template.

Bottom Line

Writing an executive summary doesn’t need to be difficult if you’ve already done the work of writing the business plan itself. Take the elements from the plan and summarize each section. Point out key details that will make the reader want to learn more about the company and its financing needs.

How long is an executive summary?

An executive summary should be one to two pages and no more. This is just enough information to help the reader determine their overall interest in the company.

Does an executive summary have keywords?

The executive summary uses keywords to help sell the idea of the business. As such, there may be enumeration, causation and contrasting words.

How do I write a business plan?

If you have business partners, make sure to collaborate with them to ensure that the plan accurately reflects the goals of all parties involved. You can use our simple business plan template to get started.

What basic items should be included in a business plan?

When writing out a business plan, you want to make sure that you cover everything related to your concept for the business,  an analysis of the industry―including potential customers and an overview of the market for your goods or services―how you plan to execute your vision for the business, how you plan to grow the business if it becomes successful and all financial data around the business, including current cash on hand, potential investors and budget plans for the next few years.

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Kimberlee Leonard has 22 years of experience as a freelance writer. Her work has been featured on US News and World Report, Business.com and Fit Small Business. She brings practical experience as a business owner and insurance agent to her role as a small business writer.

Cassie is a deputy editor collaborating with teams around the world while living in the beautiful hills of Kentucky. Focusing on bringing growth to small businesses, she is passionate about economic development and has held positions on the boards of directors of two non-profit organizations seeking to revitalize her former railroad town. Prior to joining the team at Forbes Advisor, Cassie was a content operations manager and copywriting manager.

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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.

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. “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

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”.

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.

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

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. “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 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

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 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

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.

Organizational Chart

Personnel Plan

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

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

“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

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

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

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.

Small Business Management Copyright © by Jason Anderson is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License , except where otherwise noted.

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Perfecting your crisis communication plan

Jenny Pak Director of Program Management at PandaDoc

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In business, everything that could go wrong would most likely go wrong.

And when this happens, you need a crisis communication plan to let stakeholders and customers know what’s going on.

Crisis communication eliminates the corporate confusion and helter-skelter that could ensue when disaster strikes.

If handled poorly, it could ruin your organization’s reputation.

Or even worse, lead to public safety tragedies.

This article will show you how a crisis communication plan can help your business navigate rough waters.

Key takeaways

• Crisis communication involves notifying clients, stakeholders, and members of the general public about events, accidents, and public safety incidents.
• A crisis communication plan outlines how an organization should go about informing internal teams and the public across multiple communication channels.
• Organizations can use crisis communication plans to minimize losses, prevent legal blowback, and save lives.
• The plan works best if a crisis team can analyze the situation carefully before appointing the appropriate spokesperson to speak to the public.

What is a crisis communication plan?

A crisis communication plan is a document containing guidelines and procedures for communicating with clients and stakeholders when an unprecedented event occurs.

The person or team running point during the crisis should spell out the roles, responsibilities, and messaging promptly in order to reduce panic and speculation.

Applications of a crisis communication plan

From businesses to academic institutions, communication is part of the crisis management playbook.

Here are some types of crisis communication plans.

• Financial emergency : Following the Capital One hack, the bank chairman released a detailed public statement on its website.
• Public health and safety : During peak COVID , governments and corporations used a detailed crisis communication plan to prevent cities from spiraling into dystopian wastelands.
• Natural disasters : Emergency response services use multiple communication channels to notify people during earthquakes, floods, tsunamis, and other natural disasters.
• Personnel changes : When staff members (especially C-level and customer-facing employees) leave the company, you need to inform your clients and investors.
• Personal safety : If a criminal hacks into your Instagram or TikTok account, you need to find a way to notify your followers before they start sending Bitcoin to the hacker.
• Malpractice or criminal activity : When a member of an institution is found guilty of a crime, the crisis response team will put out a statement to dissociate the individual from the group.
• Transportation : Airlines and logistics companies use crisis response plans to notify passengers and customers about delays, accidents, and cancellations. (Failure to do so has repercussions — after United Airlines fumbled their response to the Dr. Dao incident, the company’s image has yet to recover from #boycottUnited .)
• Academic institutions : Schools and colleges can send out memos to students and staff during crisis scenarios such as a death on campus, active shooter events, or disruption of services.

How a crisis communication plan can save your organization

A crisis communication plan keeps you and your organization ready for unprecedented events.

Let’s check out how a coherent response plan can save your organization.

• It helps organizations handle the fallout of scandals, natural disasters, and controversies.
• Despite massive data and privacy violations , Mark Zuckerberg has maintained a less problematic reputation than no-filter Elon Musk.
• Prompt and effective crisis communication prevents further losses in customers and revenue.
• Banks and product companies communicate about bankruptcy or hacks early to avoid panic withdrawals.
• It protects the reputation of companies by presenting the leadership as competent and personable.
• Crisis communication plans can reduce the casualties of natural and human-made disasters.
• After the train derailment in Ohio , the government sent out an evacuation memo to residents.
• It dissociates the organization from the actions of unsavory characters.
• The British Crown has a standby controversy response team that disavows members of the family who step out of line.
• A well-articulated crisis response can cover your company’s behind from any legal implications.
• In 2019, Burger King used this strategy to get a frivolous lawsuit dismissed.
• It highlights the preparedness and competence of the management structure within an organization through decisive, from-the-front leadership.

Common strategies for crisis communication

Let’s explore the communications strategy your team could use in times of crisis:

• The company PR team or spokesperson will release a statement or go for a sit-down interview.
• Companies with a massive social media presence can coordinate crisis responses across all social media channels.
• Organizations can conduct in-person outreach through emails and phone calls.

Establish a comprehensive crisis communication plan

Here are the steps to follow when creating a crisis communication plan for your organization.

Analyze the situation

Resist the knee-jerk urge to tweet your response as soon as something happens. Instead, take some time to analyze the crisis situation and understand the whole picture before putting out a statement.

Your management team needs to analyze the event to figure out the best course of action and the tone to take in the event of a crisis.

Nominate a spokesperson

The spokesperson should be the face of the organization, representing its values and sentiments.

Some innate qualities that every spokesperson should have include the following:

• Excellent communication skills
• Media training
• Resourcefulness and recognizability.

You also need to put forward someone with authority and clout to make decisions.

Picture Siobhan Roy during the cruise scandals in Succession .

You don’t want Logan Roy responding to sexual assault allegations.

Develop and approve response systems and communication methods

The response plan should cover the three main stages of crisis response:

• Pre-crisis stage: This provides the fundamental procedures and escalation hierarchy for a potential crisis. Some organizations appoint spokespersons for different cases, so every team member knows their role once it’s “go time.”
• Crisis stage: The response systems during this phase should focus on informing the public and internal teams . This is where you plan the social media posts, personal outreach calls, or PR statements.
• Post-crisis stage: This involves addressing feedback mechanisms and suggested changes. In most cases, the fallout from the crisis itself dictates the post-crisis response.

Create a response script

Your public relations responders need to craft a consistent messaging across all platforms.

This assures the customer that the information is legit and that the entire organization is in lockstep.

Consider using a crisis communication template to draft written and verbal responses faster.

Your legal team should also review the final text to make sure you don’t implicate yourself.

Crisis Management Plan Template

Used 4890 times

With this template, you can quickly and easily put together a comprehensive Crisis Management Plan.

Release the update through the designated channels

When the image of the Pope in the puffer jacket broke the internet, the Vatican didn’t panic.

They released a statement across multiple channels — including regular media outlets and socials — to quell fears and rumors.

The usual channels for communication crisis updates include the following:

• Social media channels — Facebook, Instagram, TikTok
• Verified personal profiles — Elon Musk providing updates about X.
• News media channels — CNN, etc.
• Emails and app notifications.
• Press releases and PR statements on the company website.

Airports and transportation hubs can use digital displays to notify the public about delays as well as scheduled and unprecedented service disruptions.

Answer questions

After putting out a statement, members of the public and media will reach out to your organization for clarification or confirmation.

This is where the crisis response and customer service teams earn their keep.

You need to provide them with a script to address frequently asked questions as well as an escalation hierarchy for complex queries.

In criminal cases with massive legal implications, you could give them the canned law enforcement “cannot comment on an ongoing investigation” response.

Provide regular sitreps

During prolonged events, you need to keep external stakeholders updated about recent developments in real time.

This will calm down fears and fend off misinformation while showing the progress your team members are making in handling the situation.

For website or application outages, you can use status page updates, website banners, or in-app notifications.

Deliver a detailed recap afterward

Once the dust settles, the CEO has to release a statement containing a sober analysis of what happened and the immediate to long-term impact.

This public recap is your way of showing accountability to key stakeholders. You can also use a fact sheet to provide further details about the causes and consequences of the mishap.

For companies with high-value clients, you can schedule calls to follow up on them. This is important for reputable institutions as well as companies with world-renowned investors.

Share lessons learned internally

Regardless of how successful or disastrous the crisis communication was, your crisis communication team needs to share lessons learned. These will help set up the playbook for future scenarios.

How PandaDoc can help with crisis communication

As a document management solution , PandaDoc helps organizations draft, edit, and share crisis communication outlines in record time.

You can get a crisis response template for every phase of the response.

Besides, PandaDoc uses document tracking features to keep an eye on who works on, approves, or edits the document. This ensures transparency and accountability.

If you want to create external communications for multiple scenarios, you can store them in the PandaDoc online repository .

Want to consider using PandaDoc to draft and share your organization’s crisis communication plan? Book a free demo with us.

PandaDoc is not a law firm, or a substitute for an attorney or law firm. This page is not intended to and does not provide legal advice. Should you have legal questions on the validity of e-signatures or digital signatures and the enforceability thereof, please consult with an attorney or law firm. Use of PandaDoc services are governed by our Terms of Use and Privacy Policy.

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The University of Chicago The Law School

Innovation clinic—significant achievements for 2023-24.

The Innovation Clinic continued its track record of success during the 2023-2024 school year, facing unprecedented demand for our pro bono services as our reputation for providing high caliber transactional and regulatory representation spread. The overwhelming number of assistance requests we received from the University of Chicago, City of Chicago, and even national startup and venture capital communities enabled our students to cherry-pick the most interesting, pedagogically valuable assignments offered to them. Our focus on serving startups, rather than all small- to medium-sized businesses, and our specialization in the needs and considerations that these companies have, which differ substantially from the needs of more traditional small businesses, has proven to be a strong differentiator for the program both in terms of business development and prospective and current student interest, as has our further focus on tackling idiosyncratic, complex regulatory challenges for first-of-their kind startups. We are also beginning to enjoy more long-term relationships with clients who repeatedly engage us for multiple projects over the course of a year or more as their legal needs develop.

This year’s twelve students completed over twenty projects and represented clients in a very broad range of industries: mental health and wellbeing, content creation, medical education, biotech and drug discovery, chemistry, food and beverage, art, personal finance, renewable energy, fintech, consumer products and services, artificial intelligence (“AI”), and others. The matters that the students handled gave them an unparalleled view into the emerging companies and venture capital space, at a level of complexity and agency that most junior lawyers will not experience until several years into their careers.

Representative Engagements

While the Innovation Clinic’s engagements are highly confidential and cannot be described in detail, a high-level description of a representative sample of projects undertaken by the Innovation Clinic this year includes:

Transactional/Commercial Work

• A previous client developing a symptom-tracking wellness app for chronic disease sufferers engaged the Innovation Clinic again, this time to restructure its cap table by moving one founder’s interest in the company to a foreign holding company and subjecting the holding company to appropriate protections in favor of the startup.
• Another client with whom the Innovation Clinic had already worked several times engaged us for several new projects, including (1) restructuring their cap table and issuing equity to an additional, new founder, (2) drafting several different forms of license agreements that the company could use when generating content for the platform, covering situations in which the company would license existing content from other providers, jointly develop new content together with contractors or specialists that would then be jointly owned by all creators, or commission contractors to make content solely owned by the company, (3) drafting simple agreements for future equity (“Safes”) for the company to use in its seed stage fundraising round, and (4) drafting terms of service and a privacy policy for the platform.
• Yet another repeat client, an internet platform that supports independent artists by creating short films featuring the artists to promote their work and facilitates sales of the artists’ art through its platform, retained us this year to draft a form of independent contractor agreement that could be used when the company hires artists to be featured in content that the company’s Fortune 500 brand partners commission from the company, and to create capsule art collections that could be sold by these Fortune 500 brand partners in conjunction with the content promotion.
• We worked with a platform using AI to accelerate the Investigational New Drug (IND) approval and application process to draft a form of license agreement for use with its customers and an NDA for prospective investors.
• A novel personal finance platform for young, high-earning individuals engaged the Innovation Clinic to form an entity for the platform, including helping the founders to negotiate a deal among them with respect to roles and equity, terms that the equity would be subject to, and other post-incorporation matters, as well as to draft terms of service and a privacy policy for the platform.
• Students also formed an entity for a biotech therapeutics company founded by University of Chicago faculty members and an AI-powered legal billing management platform founded by University of Chicago students.
• A founder the Innovation Clinic had represented in connection with one venture engaged us on behalf of his other venture team to draft an equity incentive plan for the company as well as other required implementing documentation. His venture with which we previously worked also engaged us this year to draft Safes to be used with over twenty investors in a seed financing round.

More information regarding other types of transactional projects that we typically take on can be found here .

Regulatory Research and Advice

• A team of Innovation Clinic students invested a substantial portion of our regulatory time this year performing highly detailed and complicated research into public utilities laws of several states to advise a groundbreaking renewable energy technology company as to how its product might be regulated in these states and its clearest path to market. This project involved a review of not only the relevant state statutes but also an analysis of the interplay between state and federal statutes as it relates to public utilities law, the administrative codes of the relevant state executive branch agencies, and binding and non-binding administrative orders, decisions and guidance from such agencies in other contexts that could shed light on how such states would regulate this never-before-seen product that their laws clearly never contemplated could exist. The highly varied approach to utilities regulation in all states examined led to a nuanced set of analysis and recommendations for the client.
• In another significant research project, a separate team of Innovation Clinic students undertook a comprehensive review of all settlement orders and court decisions related to actions brought by the Consumer Financial Protection Bureau for violations of the prohibition on unfair, deceptive, or abusive acts and practices under the Consumer Financial Protection Act, as well as selected relevant settlement orders, court decisions, and other formal and informal guidance documents related to actions brought by the Federal Trade Commission for violations of the prohibition on unfair or deceptive acts or practices under Section 5 of the Federal Trade Commission Act, to assemble a playbook for a fintech company regarding compliance. This playbook, which distilled very complicated, voluminous legal decisions and concepts into a series of bullet points with clear, easy-to-follow rules and best practices, designed to be distributed to non-lawyers in many different facets of this business, covered all aspects of operations that could subject a company like this one to liability under the laws examined, including with respect to asset purchase transactions, marketing and consumer onboarding, usage of certain terms of art in advertising, disclosure requirements, fee structures, communications with customers, legal documentation requirements, customer service and support, debt collection practices, arrangements with third parties who act on the company’s behalf, and more.

Miscellaneous

• Last year’s students built upon the Innovation Clinic’s progress in shaping the rules promulgated by the Financial Crimes Enforcement Network (“FinCEN”) pursuant to the Corporate Transparency Act to create a client alert summarizing the final rule, its impact on startups, and what startups need to know in order to comply. When FinCEN issued additional guidance with respect to that final rule and changed portions of the final rule including timelines for compliance, this year’s students updated the alert, then distributed it to current and former clients to notify them of the need to comply. The final bulletin is available here .
• In furtherance of that work, additional Innovation Clinic students this year analyzed the impact of the final rule not just on the Innovation Clinic’s clients but also its impact on the Innovation Clinic, and how the Innovation Clinic should change its practices to ensure compliance and minimize risk to the Innovation Clinic. This also involved putting together a comprehensive filing guide for companies that are ready to file their certificates of incorporation to show them procedurally how to do so and explain the choices they must make during the filing process, so that the Innovation Clinic would not be involved in directing or controlling the filings and thus would not be considered a “company applicant” on any client’s Corporate Transparency Act filings with FinCEN.
• The Innovation Clinic also began producing thought leadership pieces regarding AI, leveraging our distinct and uniquely University of Chicago expertise in structuring early-stage companies and analyzing complex regulatory issues with a law and economics lens to add our voice to those speaking on this important topic. One student wrote about whether non-profits are really the most desirable form of entity for mitigating risks associated with AI development, and another team of students prepared an analysis of the EU’s AI Act, comparing it to the Executive Order on AI from President Biden, and recommended a path forward for an AI regulatory environment in the United States. Both pieces can be found here , with more to come!

Innovation Trek

Thanks to another generous gift from Douglas Clark, ’89, and managing partner of Wilson, Sonsini, Goodrich & Rosati, we were able to operationalize the second Innovation Trek over Spring Break 2024. The Innovation Trek provides University of Chicago Law School students with a rare opportunity to explore the innovation and venture capital ecosystem in its epicenter, Silicon Valley. The program enables participating students to learn from business and legal experts in a variety of different industries and roles within the ecosystem to see how the law and economics principles that students learn about in the classroom play out in the real world, and facilitates meaningful connections between alumni, students, and other speakers who are leaders in their fields. This year, we took twenty-three students (as opposed to twelve during the first Trek) and expanded the offering to include not just Innovation Clinic students but also interested students from our JD/MBA Program and Doctoroff Business Leadership Program. We also enjoyed four jam-packed days in Silicon Valley, expanding the trip from the two and a half days that we spent in the Bay Area during our 2022 Trek.

The substantive sessions of the Trek were varied and impactful, and enabled in no small part thanks to substantial contributions from numerous alumni of the Law School. Students were fortunate to visit Coinbase’s Mountain View headquarters to learn from legal leaders at the company on all things Coinbase, crypto, and in-house, Plug & Play Tech Center’s Sunnyvale location to learn more about its investment thesis and accelerator programming, and Google’s Moonshot Factory, X, where we heard from lawyers at a number of different Alphabet companies about their lives as in-house counsel and the varied roles that in-house lawyers can have. We were also hosted by Wilson, Sonsini, Goodrich & Rosati and Fenwick & West LLP where we held sessions featuring lawyers from those firms, alumni from within and outside of those firms, and non-lawyer industry experts on topics such as artificial intelligence, climate tech and renewables, intellectual property, biotech, investing in Silicon Valley, and growth stage companies, and general advice on career trajectories and strategies. We further held a young alumni roundtable, where our students got to speak with alumni who graduated in the past five years for intimate, candid discussions about life as junior associates. In total, our students heard from more than forty speakers, including over twenty University of Chicago alumni from various divisions.

The Trek didn’t stop with education, though. Throughout the week students also had the opportunity to network with speakers to learn more from them outside the confines of panel presentations and to grow their networks. We had a networking dinner with Kirkland & Ellis, a closing dinner with all Trek participants, and for the first time hosted an event for admitted students, Trek participants, and alumni to come together to share experiences and recruit the next generation of Law School students. Several speakers and students stayed in touch following the Trek, and this resulted not just in meaningful relationships but also in employment for some students who attended.

More information on the purposes of the Trek is available here , the full itinerary is available here , and one student participant’s story describing her reflections on and descriptions of her experience on the Trek is available here .

The Innovation Clinic is grateful to all of its clients for continuing to provide its students with challenging, high-quality legal work, and to the many alumni who engage with us for providing an irreplaceable client pipeline and for sharing their time and energy with our students. Our clients are breaking the mold and bringing innovations to market that will improve the lives of people around the world in numerous ways. We are glad to aid in their success in any way that we can. We look forward to another productive year in 2024-2025!