Business Plan Construct
Framework
1. Define the business problem / opportunity
a. Explain the problem the business plans to solve or the opportunity upon
which the business seeks to capitalize
1) Describe in simple, easy-to-understand terms without technical jargon or
marketing double-speak
b. Quantify the “cost of pain” to the potential customer in dollars and/or time
2. Describe the solution and benefits
a. Explain clearly how and why the product and/or service serves the
market/customer and why it will work
b. Quantify the benefits in terms and metrics that are relevant and important to
the target customer base
3. Define the target industry and size the market
a. Describe the existence and projected expansion of the intended target
market
b. Define market segmentation, market dynamics, and customer
environment(s)/landscape
c. Use charts, graphs, and data to make the market opportunity easy to
understand
4. Define the business model at a high level
a. How will we make money?
1) Who will pay how much (revenue) for what (product / service suite)?
2) What do we project that our direct product / service costs will be?
3) What are the projected operating expenses (payroll, advertising & promotion,
infrastructure and support, overhead/corporate allocation)?
4) How much do we get to keep?
5. Identify the competition and define our sustainable competitive
advantage(s) against the competition
a. List and describe all legitimate competitors and emerging competitors
b. Identify companies that are not direct competitors, but that provide products
and/or services that may provide an alternative choice for the same
customer spend.
c. Detail our competitive advantage(s) and “USP” (Unique Selling Proposition)
1) Highlight barriers that will inhibit our competitors from encroaching upon our
competitive advantage.
6. Define and quantify the risks associated with the business venture being
considered.
a. Industry Risks
b. Risks relating primarily to our own business and other internal factors
c. General Economic Risks
7. Finalize the Marketing and Sales strategy
a. Construct and document the Go-to-Market strategy
b. Construct a high-level marketing plan and identify the primary marketing
mediums / channels and frequency
c. Construct a pricing model / template for the core product line and supporting
services
d. Construct and document the distribution channels and distribution model
8. Organization & Personnel
a. Executive Leadership
b. Other staffing requirements. Define required roles & responsibilities and
timing of need.
c. Define business unit KPI’s and Accountability structure
d. Document Guidance & Feedback process, participants, & frequency
9. Funding Requirements
a. Quantify funding & investment requirements
1) Explain how capital and funding requirements were derived
b. Clearly describe all “uses of funds / cash”.
10.
Financial Forecast
a. Construct 5-year financial model
b. Construct Sales Forecast. Show and justify growth assumptions
c. Plot timeline to “Cash Flow Positive” status