Who are your direct and indirect competitors? You really should gain at least an initial understanding of who else is offering similar products or services to your target market. It's good to know how their products or services are currently used and perceived _ why people buy them, and why they don't. In doing so, you begin to understand the strengths and weaknesses of your competitors from the consumer's perspective. Depending on what your product or service is, you can find all kinds of information about user experiences with your competitors' offerings. Sites like Amazon let you see product reviews by customers who bought products.
Isn't this a much better way to go about planning your business? Shouldn't your business be designed to give you want you want instead of you working yourself to death just hoping for the best? So how would you go about calculating all this? There is quite a bit of calculations and you should know a little about business principles but it isn't that complicated. So first let's look at figuring out your future needed sales with this formula: Projected sales = fixed expenses divided by Ƒ_(var exp % of existing sales + mat cost % of existing sales + lab cost % of existing sales + desired net prof %)). So, let's say you existing sales is 迲ꯠ annually, your fixed expenses are 足ꯠ, variable expenses is ็ꯠ or 6Ǒ% of the 迲ꯠ, material cost is 趌ꯠ or 27ǔ%, labor cost is 贍ꯠ or 12ǔ%, and your existing profit margin is 赏ꯠ or 20ǒ%.