Here is a recap of where we are in this discussion: Business plans formalize an understanding of the task with appropriate analysis leading to a plan_of_action. Not all business plans are for profit motives. Business plans are for an enterprise effort and not focused on disciplines/departments, e.g. Marketing plan, sales plan, HR plan, supply chain plan, etc. Business plans are a great vehicle to build a team effort. Plans can be utilized for formalizing metrics relative to achieving goals and performance measurements. Some complex plans might include a Project Management professional. There are internal and external audiences for business plans. Most external focused plans are for outside funding of projects. Be mindful of the 'tone' the plan projects to the reader. Tone refers to the impression a person gets from reading the plan; a subliminal feeling about the plan.
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.