What do you need to get your business rolling/growing, and what will it cost? This is arguably the most painful part of business planning. Yet, what is the point of having a plan if you don't know how it all adds up financially? You may not know how to put all the numbers together on your own. If that's the case, invite or even hire someone to help you sort out the numbers. Aside from any potential revenues earned from sales of your product or service, you'll need to know your fixed expenses _ what it costs you to run your business whether or not you sell a single item, and your variable expenses _ what it costs you for each item sold. Naturally, in the early stages of planning a business, you will be doing a lot of forecasting, and your numbers may not be as accurate as you'd like them to be. So, you'll want to be as conservative as possible about how much revenue you'll generate and how much your business will cost to run.
Now let's say you estimate your conversation rate to be 3% of turning leads into paying customers with the advertising method you're going to use, how many leads would need to contact to get 387 customers? Simply divide 387 by 3% and you get 12꽭 leads you're going to need to contact. Then the question is; is your market going to be big enough to provide you with 12꽭 leads for the next year and how many will you need each of the following years?