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 Second, decide what you want your salary to be Third, determine how many years in the future you want to plan for Fourth, you will need to know: 1. What % is your material cost of sales? 2. What % is your labor cost of sales? 3. And what % is your variable expense of sales?
Risk Assessment _ What weaknesses are inherent in this venture? What vulnerabilities face this type of venture? What impact will these have? What new technologies may affect this venture over the next 1 to 3 years? What contingency plans are in place? What level of liability insurance is required? What does it cost? Who is the carrier? Possible Data Sources: trade associations; trade journals; Service Corps of Retired Executives (SCORE); industry salespeople; customers; focus groups.