4 Frameworks to Consider When Building a Business Plan

Updated: May 20, 2010

1. The Market Model - Business/Financial performance is modeled on the number of markets a business is able to support and grow over a period of time.

Key assumptions in this framework include: what's the market size? How many competitors exist in a given market? What does the business believe s its attainable market share? How can the business acquire/fulfill/grow that share

2. Supply / Demand - Depending on what I can produce (supply) how many customers of a given size are need to support (demand)

Key assumptions of this framework include: How many customers exist in a given market? How big are they? How can the business acquire/fulfill/grow the customer base by customer size? How long will it take me do so?

3. Sales planning - Business/Financial performance is based on the scalability of the sales force.

Key assumptions in this framework include: What is the appropriate hiring rate for sales people? How quickly will they achieve certain sales milestones? What's the appropriate incentive based comp structure? Do accounts differ by client size/industry? What turnover should I expect?

4. Acquisition planning - Business/Financial performance is based on the ability "buy" your way into markets

Key assumptions in this framework include: Markets dynamics: are there many small players or a few dominant? Does the business model permit economies of scale? Typical or a typical acquisition deal structures?

Featured Research
  • VoIP: Your New Secret Weapon for a Strong Year End

    As the end of 2017 nears, you may be feeling pressure to make sure you close the year out strong.If you’ve been sitting on the fence regarding VoIP, this may be the perfect time to switch. VoIP options had never been better or more full-featured than they are now, and it may be just the thing your business needs to see a productivity and profitability boost. more

  • Eight Ways You Should Be Using Contact Center Reporting

    Every day, your contact center collects critical data that can be used to drive strategic improvements to your efforts in the future. But that data is meaningless if you don’t know how to access and analyze it. The key to do doing both is using reporting features. By understanding how to use reporting tools, you will gain much greater insight from the data you are collecting. more

  • Is Your Phone System Stealing Profits?

    Having the wrong phone system can dramatically cut into your profits. Despite this, many businesses just sign up for a plan or platform that seems ‘good enough’. If you haven’t carefully considered your options and the included features, there’s a very good chance that you are leaving money on the table in some way. more

  • Best Video Conferencing Features for Business

    Most businesses are currently underutilizing their video conferencing software because they aren’t aware of the different ways it can be used. Understanding the different features of video conferencing software can be critical to getting the most out of your investment. These features often vary from one option to the next as well, so it's important to do your homework before choosing a specific service. more

  • Phone System Technology Showdown

    VoIP and IP telephony are often misconstrued as being the same type of phone system, but the truth is they operate on different technology and deployment methods. This guide will explain the differences between VoIP and IP, go into the pros and cons of both VoIP and IP-PBX, and give insight into which type of phone system will benefit your business the most. more