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This sample marketing plan was created with Marketing Plan Pro software.

This section will offer a financial overview of Mother's as it relates to the marketing activities.  Mother's will address break-even analysis, sales forecasts, expense forecasts, and how they link to the marketing strategy.

Break-even Analysis

The break-even analysis indicates that $750 will be needed in monthly revenue to reach the break even point.

Break-even Analysis

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Break-even Analysis
  
Monthly Revenue Break-even$301
  
Assumptions: 
Average Percent Variable Cost5%
Estimated Monthly Fixed Cost$300

Sales Forecast

The first month will be used to set up the business. It is unlikely much/any business will be officially transacted during this month. In addition to dealing with legal and accounting issues for the business, office equipment will be purchased and set up. Once the physical office is ready the employee policy and procedure manual will be developed. Then the training program will be constructed. This will take a bit of time therefore it is very important it is set up at the outset, ensuring that it is completed and done properly when there are far less time constraints.

The second month will begin to see some activity. Mother's will begin to field inquiries over the phone and expect to turn some of those into contracts. The first week of jobs will be done as a team, with Sarah and one employee. As the number of contracts begin to pick up, probably at the end of the second month, an additional person will be hired to form the first employee team. By the end of month four there will be enough demand that a new team of two will be trained and begin working. Having two teams of two will be sufficient until month seven when two more people will be brought on. Mother's expects to remain with a six person head count into mid-year two when we expect to bring on one more team.

The sales forecast is based on the assumption that increased demand will occur at a steady pace. This is based on the assumption that a large part of the new clients after month two will be from word-of-mouth referrals. All this will happen steadily and incrementally. This forecast is on the conservative side, it is possible that because Mother's is superior to competing services that things really take off, however, it would not be prudent to take that aggressive of a forecast. It is always better to error on the side of caution.

Sales Forecast

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Sales Forecast
 200220032004
Sales   
Wealthy one-income families$54,433$56,433$57,854
Affluent two-income families$119,487$119,486$128,744
Total Sales$173,920$175,919$186,598
    
Direct Cost of Sales200220032004
Wealthy one-income families$2,722$2,822$2,893
Affluent two-income families$5,974$5,974$6,437
Subtotal Direct Cost of Sales$8,696$8,796$9,330

Expense Forecast

The marketing expenses will be budgeted so that they are increased during the first quarter in order to generate visibility for Mother's.  The expenses will then lower and remain steady until the second half of the last quarter when they will be increased in preparation for increase usage of cleaning service for the winter holidays.

Marketing Expense Budget

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Marketing Expense Budget
 200220032004
Printed material$600$1,000$1,200
Economic incentives (for referrals)$1,200$1,500$1,800
Other$7,600$9,000$11,000
 ------------------------------------
Total Sales and Marketing Expenses$9,400$11,500$14,000
Percent of Sales5.40%6.54%7.50%

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