Realistic number of customers
It can be fairly easy to estimate the potential amount of customers. But how
many will actually want to take the money out of the purse and pay you for
your product or service? It is much more difficult to estimate.

To come up with a qualified guess you could interview 50 potential
customers. Ask them whether they want to buy your product instead of the
one they are using at the moment. Hopefully 50 % says yes.
Other issues that could determine a realistic number:

• Your location close to the railway station is very good so 100 customers
per day will be realistic.
• You can sell the same product 40 % cheaper because of improved
effectiveness - this attracts customer.
• You have found a 'hole' in the market so there is no competitors.
• Heavy marketing and PR the first four weeks should open the market.
• Maybe you are so lucky that the first customer is your old workplace
that have bought 500 hours of work from you.

Don't make unrealistic estimation in your business plan. Everybody can
look through an unrealistic number. Or at least the investors, staff from the
bank and other businessmen.

A Sports Bar and Cafe could write in the business plan:

• Because of its news value, our powerful marketing campaign and our
close relationship to the local sports club we expect full house most of
the week. In the cafe we have room for 150 persons/chairs. From
Monday to Wednesday we expect 60 % occupied chairs. They will be
occupied 2 times during the day. Thursday to Sunday 80 % occupied
chairs. They will be occupied 3 times during the day. Each customer will
spend an average of 20 $.

Competitive parameters
Competitive parameters are the things that make the customer buy the
specific product. Depending on the product the competitive parameters will
be different. Different lines of business have different parameters.

In some areas the price is most important competitive parameter. The more
competitive the line of business the more important the price. In a street full
of restaurants price will often be the bait for customers.

It is very easy to copy a competitive parameter when price is the only one.
The only thing you have to do is to change the price label.

You can sell on something else than price. Things that are very difficult
copy:


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