By Steije Blokpoel at April 18 2019 13:18:33
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.
Are you at a point with your business where you just don't know what to do next? Do you have a business plan? How about a growth business plan? Have you looked at a lot of different ways to grow your business and nothing seems to work? The right growth business plan could be your answer. If a growth business plan is done the right way it may open up some opportunities you have never thought about before. A growth business plan can be developed many different ways but I would like to discuss a growth business plan that you may have never thought about.
A plan like this would show you how much sales your business would need to do, what your fixed and variable expenses would be, what your material cost, labor cost and profit would need to be to provide the income and profit margin you want. You can see pretty quickly if it's possible for you to get your business to that level. I don't know of any better way than to have your business give you the income and profit you want. What's neat is you can determine what you want your income to be and your profit to be over the next few years and develop a plan that can show you exactly what your business would need to do to give you that income and profit.
Service Operation _ If a service is offered, describe it. Will the work be done by company personnel or subcontracted? Who are the subcontractor(s)? If on_site or in cyberspace, what employee qualifications, equipment, and technologies are needed? How will quality be assured? What performance levels are anticipated per employee? Possible Data Sources: local Chamber of Commerce; yellow pages; trade associations.