Or say you plan to sell services to local businesses in that case, try to determine the amount they currently spend on similar services. (Again, potential spending power is an important number to quantify.) Senior citizens could very well have a lower income level than males or females age 45 to 55 in the prime of their careers.

Income by demographics. You can also determine income levels by age group, by ethnic group, and by gender.A service that is viable in New York City may not be viable in your town. Don't assume every city or locality is the same in terms of spending power. Does your market area have sufficient spending power to purchase enough of your products and services to enable you to make a profit? Some areas are more affluent than others. Median income. Spending ability is important.While people purchase HVAC systems, 'households' consume those systems. For example, if you sell heating and air conditioning systems, knowing the number of households is more important than simply knowing the total population in your area. Total households. In some cases determining the number of total households is important depending on your business.Determining the total population for the market is not particularly helpful if your product or service does not serve a need for the entire population. Plus, again in general terms, women make up a relatively small percentage of jet ski purchasers. Say you sell jet skis anyone under the age of 16 and over the age of 60 or so is unlikely to be a customer. Your potential customers. In general terms, potential customers are the people in the market segment you plan to target.If customers don't feel you are different, then you aren't truly different. How can I differentiate myself from my competition in the eyes of my customers? (You can have a great plan to beat your competition, but you also must win the perception battle among your customers.What skills do my employees need, and how many do I need?.What products, services, and equipment do I need to run my business?.Where will I fail to solve a customer problem, and what can I do to overcome that issue? (In our rental example, one problem is a potential lack of convenience we will overcome that issue by offering online reservations, on-resort deliveries, and drive-up equipment returns.).What pain point do I solve for my customers?.Who is my average customer? Who am I targeting? (Unless you plan to open a grocery store, you should be unlikely to answer, 'Everyone!').

How to make the best business plan