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As an example, let's say your current average number of transactions per month per customer is 3nj. Which says on average each customer does business with you 3 times each month. You could calculate how much more profit you would get if you could increase it to 3Ǒ. And I can tell you that would probably be enough to meet your plan. And if that did generate enough profit, all you would have to do is maintain everything else; sales, expenses, labor, average dollar sale, etc, and then just figure out how you could increase your transactions from 3nj to 3Ǒ. Maybe it could be with some type of promotion that would get customers to come in more often.

If you develop a good Profit & Loss Statement for your existing business for the current year or for the first year of your proposed business, you can use this data to actually project how much sales you would need to yield the income you want and the profit margin you want. You can plan ahead as far as you want. Sound impossible? It's actually pretty simple and can be pretty accurate plan.

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