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The appendices and exhibits part is the last section of a business plan, and it includes any additional information that banks and investors will be interested in or that adds credibility to the business.
The market analysis section details the target market for the company’s product offerings.
The section confirms that the company understands the market and that it already analyzed the existing market to determine that there is adequate demand to support its proposed business model.
Some of the information provided in this section include the major competitors, industry trends, and the estimated revenues.
It also shows the company’s position in the industry and how it will compete in the market against other major players.
It is often deemed the most illiquid of all current assets, and thus it is excluded from the numerator in the quick ratio calculation..
For a business that requires custom warehouses and specialized equipment, the operating plan will be detailed, compared to a home-based consulting business.
The profit or loss is determined by taking all revenues and subtracting all expenses from both operating and non-operating activities.
This statement is one of three statements used in both corporate finance (including financial modeling) and accounting., balance sheet, and cash flow.
If the business plan is for a manufacturing company, it will include information on the raw material requirements and supply chain.
The financial plan is an important section that will determine whether the business will obtain the required financing from financial institutions, investors, and venture capitalists.