Parameters

Overview

Here we see all the Parameters used in the Business model, with similar parameters logically grouped together. The groupings have been explained further below.

Groupings

There are several groups of parameters - described below:

Marketing Parameters

These outline all marketing related parameters, needed to drive business growth. These include those relating to:

• Direct Simple Mailshot Campaigns
• Direct Advanced Mailshot Campaigns
• Tradeshows
• Direct Sales Teams

The parameters here include estimated conversion rates, for each type of product being sold

Pricing Parameters

This is where the joining and on-going fees for each product can be set.

Cost Parameters

Here is where assumptions for the following cost items can be set:

• Support Staff
• Development Staff
• Office Rental
• Recruitment
• Legal/Accounting
• Electricity/Gas/Water
• Equipment Rental
• Other Office Maintenance
• Other Supplies & Subscriptions
• Telephone

Market Parameters

This is where the retention rate - the rate at which customers leave each month - can be set.

Business Start Date

The Start Year and Month can be set as parameters to the model in this section.

Accounting & Tax Parameters

Here is where rates can be set for:

• Bad Debt (on Receivables)
• Corporation Tax
• VAT

Financing assumptions

Lastly, this is where the initial equity investment amounts can be set.