By Djay Rijneveld at April 23 2019 14:03:44
So, why make a business plan the normal way when you could first make one that could give you what you want in life? Have you ever thought about doing a plan like that? Would you know how? Would you have the time to do it? Well if you don't or not sure, let's at least see what's involved. Here are the steps you would need to take. First, you would need to know all your current business numbers. This will be the basis for the plan. You're going to need to know: 1. What your current average monthly sales are 2. What your current average monthly material cost is 3. What your current average monthly labor cost is 4. What your current average monthly fixed expenses are 5. What your current average monthly variable expenses are 6. What your average number of transactions per customer per month are 7. What your average dollar sale per transaction is 8. What your average monthly profit is 9. What your average monthly profit margin is 10. And what % capacity your business is at right now
Average Selling Price _ Now when you calculate your average selling price which is your cost of sales (material + labor) divided by Ƒ_gross profit), you can determine how many customers you would need and then come up with what you think your conversion rate would be for converting leads to customers, you can determine how many leads you would need. Then from this and with the aid of the U.S. Census Bureau and some basic research on your own you can actually have a pretty decent idea of what size your market is and is going to be in the future so you can see if it will support your business plan or not.
Industry Analysis _ How does your product or service compare with what is currently on the market? What is the trend in the overall industry? What have been the total sales in this industry over the previous 3 to 5 years? What new products or technologies have had the biggest impact on this industry recently? What is the future outlook for these and what trends are emerging? Who are the competitors, where are they located, and how are they doing? What advantage do you offer over them? Who is buying this product or service now? Describe the typical customer for this product or service. Are there emerging markets or market segments? Where does this product or service currently perform best? Possible Data Sources: trade associations; trade journals; attorneys & accountants dealing with the industry; industry salespeople; state business websites; focus groups.
So why make a business plan? I want to show you a totally different kind of business plan. What if you made a business plan that focused only on what you want for your life? You have dreams about what you would like your lifestyle to be, right? Why not make a business plan that could give you those dreams? What would your business look like if it gave you exactly what you want in life. What kind of salary would your business need to give you? Why not build a business plan around that? Decide how much salary you would need to support your dreams and then build a business plan that would show exactly how your business could give you that. Wouldn't it be better to have your business work for you instead of the other way around?