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By Abdel Steijns at April 15 2019 02:43:55

Your marketing efforts do not have to be expensive. In many cases, companies that don't have marketing plans spend more than is necessary to reach their customers. With a plan that will spell out the ways you will market your company, you will save money and energy on your business marketing efforts. Creating an effective marketing plan is one of the most crucial elements of planning for your business.

There is quite a bit of calculations and you should know a little about business principles but it isn't that complicated. So first let's look at figuring out your future needed sales with this formula: Projected sales = fixed expenses divided by Ƒ_(var exp % of existing sales + mat cost % of existing sales + lab cost % of existing sales + desired net prof %)) So, let's say you existing sales is 迲ꯠ annually, your fixed expenses are 足ꯠ, variable expenses is ็ꯠ or 6Ǒ% of the 迲ꯠ, material cost is 趌ꯠ or 27ǔ%, labor cost is 贍ꯠ or 12ǔ%, and your existing profit margin is 赏ꯠ or 20ǒ%. Now let's say next year you want to have a profit margin of 25% so what would your sales need to be to give you that profit margin? Now you might think you would simply tack on 4ǐ% more to sales ྐྵ% _ 20ǒ%) and you would have it. Well not quiet. it doesn't work that way because you are going to have the additional variable expenses, material cost, and labor cost too. Remember, the more sales the more each of these expenses and cost will be.

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38 of my 41 years were in management and leadership roles. Some of my disciplines were manufacturing operations and processes, quality systems including ISO, materials, supply chain logistics, engineering, purchasing, HR functions including union and nonunion operations, concurrent engineering from product design to the customer, and upper management, and supervision training. Experiences also included a number of special projects such as managing plant shutdowns, project director of facility relocations including feasibility studies, designing of lean manufacturing concepts for new operations, development and startup of new facilities, plant and process moves to new locations, and hiring and training of staffs and workforces for new locations.

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.

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