The Water Factory
This sample marketing plan was created with Marketing Plan Pro software.
This section will offer a financial overview of The Water Factory as it relates to the marketing activities. The Water Factory will address break-even analysis, sales forecasts, expenses forecasts, and how they link to the marketing strategy.
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The break-even analysis indicates that $6,400 will be needed in monthly revenue to reach the break-even point.
|Monthly Revenue Break-even||$3,215|
|Average Percent Variable Cost||47%|
|Estimated Monthly Fixed Cost||$3,200|
The first month will be spent setting up the home office. There will be no sales activity. Additionally, Aych Tu-oh will be ordering a few products to use as samples.
The second month will be the first month of sales. During this month Aych Tu-oh will have signed a few people up and revenue will be trickling in. It will not be until month five when revenue begins to get strong. Month six will be the first month when some of the recurring revenue will come in from Aych's recruited sales people.
|Recurring revenue stream||$2,189||$15,447||$19,874|
|Direct Cost of Sales||2003||2004||2005|
|Recurring revenue stream||$0||$0||$0|
|Subtotal Direct Cost of Sales||$19,546||$38,927||$41,274|
The marketing expenses will be spread fairly evenly throughout the year. The expenses will be mostly made up of organizational dues, however Aych will be spending some of his marketing budget on activities that support his networking campaign.
|Marketing Expense Budget|
|Total Sales and Marketing Expenses||$3,750||$4,500||$5,000|
|Percent of Sales||9.08%||4.82%||4.88%|
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