By Carly W at August 24 2019 21:40:08
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.
When you're writing a business plan in a situation like these, you need to address a few issues the intentional entrepreneur has already pondered. The first is do you really want this idea to become a full_blown business? Certainly it's flattering when you realize there's a market value for something you were doing anyway, but that doesn't always mean you should launch a business. A lot of accidental businesses form around fads or seasonal items, and may not be robust enough to function as year_round, money_making, enterprises.