This is the start to any marketing strategy and unfortunately it is seldom considered in small businesses. You need to ask yourself the following questions: how much business do I need to survive and how much business do I need to prosper?
There are two reasons to ask these questions. The first is to give you a daily target to aim for. If you don’t know how much business you need to cover all of your costs how can you ever know if you are making money or losing money?
The important thing to do now is to take a few minutes and work out exactly how much business you need to cover all of your costs. Be honest and realistic and over estimate rather than underestimate. You can work out this figure for a year, a month, a week, per day or even per hour.
Once you know exactly how much business you need to cover all of your costs you know exactly how much business you need to survive. This is what it will cost you to open the doors every day.
This is a very powerful figure because from this point on, you know exactly when you are making money and exactly when you are losing money. The aim of course is to have more days when you make money than days where you lose.
The next step is to decide how much profit you want to make from your business. Add this to your survival figure and presto you now have a figure to aim for. This tells you exactly how much business you want to prosper.
It is amazing how clear everything becomes when all of a sudden you know how much business you need to survive and how much business you want to make a certain profit that you feel will put you in the prosperous category. Very few businesses take the time to figure these targets out, but successful ones always do.