is straightforward. Sell more than you spend.
The less linear issue is to who, what, where, and
The answer lies in sighting a heading, surveying the
playing field, drafting a strategic and tactical plan,
implementing the tactics,
assessing the results and executing prescribed
your business & marketing scope at prospective
customers. Identify their desires. Define
products and services to fulfill their desires. Your customer
prospects are the business compass
heading. Consequently, all
business activity must ultimately be aimed at
inviting your customer prospects to do business
with the business.
But before you proceed
Find the sales number needed to breakeven with a trial profit
& loss guesstimate
result is not a sales forecast. It's simply the
number needed to cover all costs. If the number
appears feasible, then continue.
Operating Expenses +
of Goods Sold ] ≥ $ 0.00
the playing field
Readjust your business & marketing scope to the
spheres of business you cannot
influence: the national economy, the economic status
of your trade area, and the competition.
Note: The trade area is the
geographical boundaries of where your customers reside
-- your market.
What are the gurus of finance projecting regarding
the national economy? How do global trends influence
key-resources such as oil?
How are major industries performing? What are the economic effects of the federal
government? Use this data and the following to
form your survey.
The Federal government's fiscal and tax policy
Tax cuts generate positive economic trends.
Tax increases generate negative trends.
Increased government spending can generate short term
The Federal Reserve monetary policy
A low inflation policy supports a positive
High inflation robs consumer
purchasing power which leads negative.
Stable low energy costs supports a
Increased energy costs decrease
discretionary spending which leads negative.
- Medium income
Increasing incomes puts more dollars
in customers pockets -- a positive trend.
Decreasing medium income reduces
discretionary spending -- not good.
economy -- Survey the economic status of your
projected trade area.
- Real estate, automotive, and large retailer
sales are reliable indicators.
- Increasing sales tax revenue
without a tax rate increase is a positive
trend. The inverse is not.
Tax data is available via city hall or the county.
-- Assess significant competitors.
- Survey competitors locations, product mix, promotional
activity, sales and installation staff.
- A personal visit and a handshake can generate
significant competitive information.
Go or no
your project still seem feasible? If yes, then
move forward to the next page.