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By Emy Treurniet at May 07 2019 15:28:00

Second, decide what you want your salary to be. Third, determine how many years in the future you want to plan for. Fourth, you will need to know: 1. What % is your material cost of sales 2. What % is your labor cost of sales? 3. And what % is your variable expense of sales?

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.

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So, what would your business look like over the next 10 years to give you that? Could you build a plan that would show exactly how your business could do that? It would show what your sales, fixed expenses, material cost, labor cost, and variable expenses would need to be. It should also show you how many customers you would need and would show you what your profit and profit margins would be each year. All it takes is your current business numbers as we listed earlier and you can make a business plan as many years out as you like.

Here is a recap of where we are in this discussion: Business plans formalize an understanding of the task with appropriate analysis leading to a plan_of_action. Not all business plans are for profit motives. Business plans are for an enterprise effort and not focused on disciplines/departments, e.g. Marketing plan, sales plan, HR plan, supply chain plan, etc. Business plans are a great vehicle to build a team effort. Plans can be utilized for formalizing metrics relative to achieving goals and performance measurements. Some complex plans might include a Project Management professional. There are internal and external audiences for business plans. Most external focused plans are for outside funding of projects. Be mindful of the 'tone' the plan projects to the reader. Tone refers to the impression a person gets from reading the plan; a subliminal feeling about the plan.

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