Assessing the viability and whether there is enough demand for a product is a key consideration for any business owner when they are launching a new product or entering a new market. Without getting neck deep in spreadsheets there are two simple ways that you can run the numbers to understand and play with the numbers in your business.
Assessing the Viability of your Business
Before you enter a new market, it is smart to gather some key facts about the market-place to see if it is worth you entering the market in the first place. Our Market Potential Template gets you to work through three sets of numbers to see the size of prize or marketing opportunity that exists.
Running the Numbers
I have developed The Entrepreneurs Equation© which is a formula that you can use to play around with the numbers for your business which outlines the 3 key input decisions into any business (customers, pricing and cost) and the outcomes that come out as a result of different decisions you make around those three decisions. You can use this template to understand how many customers you need based on your income goals, how much you need to charge and how much you need to save or spend to achieve your financial objectives.