aspengirl

I am currently working on my business plan and my question is -What is a realistic percentage to forecast for an annual sales increase?

I know that every salon owner would love to see a significant sales increase every year but I would like to stick with a conservative, attainable number and I am asking salon owners for what they have seen. I am just starting to tackle the financial portion of my business plan.

I will be located in Colorado. (mountains)
9 beds with 1 spray booth to start
About 75,000 people within 0-10 mile radius.
Average income $115k

Tommy

Quote:
On 2005-11-09 12:00:00, aspengirl wrote:
What is a realistic percentage to forecast for an annual sales increase?

It’s a forecast, so forecast and pick a number. The issue in forecasting is justification, WHAT are you going to do the expand your customer base after the first year, THINK of the reasons you have for forecasting the 10%, or 15%, or 20% or whatever number you pick.

Interesting demographics, but you might want to find out how many compeditors are in that same 10 mile radius. Colorado mountains, too cold for me.
Good luck.

Tom

Neon Beach

There is an annual sales increase? Why wasn't I informed of this?

BigLeo

Don't just pick a number for the sake of justiciation. You need to know the size of the market. What is the market potential in your market. How much competition is there. Ten years ago the averge salon had about 2200 paying clients per salon. Those were the good ole days. I calculated that this number is down to about 1200. 20% will be hardcore tanners or those who will tan at least once a week. The rest will be maintenance tanners who tan 1 to 4 times a year. Do the arithmetic based on what you think you can charge, on average. If your projected revenues do not match up or exceed your operatiing expenses look at other sources of income. It's darn hard to do it strictly on tanning. Having said this, I would recommend TanPlan, a product I use all the time to project revenues and expenses. Check it out at Pointblank Business Technology. Good luck and much success.

Leo

tropicgirl

I used 10 percent, hoping for 15%. Its been right about on target this year. Its all about goal setting, and how high YOU want to set your goals. Do you want something that looks good on paper, or something realistic in your market?

You've got a good average income to work with, but how many competing salons in your area?