By Charif Slag at April 20 2019 08:19:32
Have An Overall Vision _ When writing your business plan it is really important to have an overriding vision of what your business is going to do, what it is going to be, and what you want to achieve. Very often it is tempting to get straight into the technical details, the monetary concerns, financial matters, where you will be sourcing supplies, etc. Now all these things will be vital in your business plan, but it has to be held together by a coherent, broader vision.
Let's say your average selling price for your service is 逽ሪ and you have one transaction per year per customer. Using that first years sales example we used above, you would calculate it this way. 造같 divided by 逽ሪ = 968 customers needed for the year. Now if your average transactions per customer are more than 1, then you would need fewer customers. As an example, let's say your average transaction per customers per year is 2Ǒ then 968 divided by 2Ǒ = 387 customers per year.
That is a great thing to make sure you have in your business plan, that your business will be built around those real customer wants. Do not make callous assumptions, or statements like "I know what people want", "People are going to love this", and so on. Have you done your research? Do you really know that the people you will be targeting want your product / service, and crucially do they want it AT THE PRICE that you will be offering it at? Whilst confidence in your plan is fantastic, you must make sure that it does not lead you down a blind alley along a path that is not desired by your target market. Don't assume what customers want, do your research and make sure that is clear from the start in your business plan.
So here is how you would do it: Projected sales = fixed exp (足ꯠ) divided by 1_ƖǑ% + 27ǔ% + 12ǔ% + 25% (your new profit margin) = 造같 (new sales). You can do this for as many years out as you want. Obviously this is based on your first year's fixed expenses remaining constant and no consideration of depreciation, inflation, or taxes.