From the course: Finance Essentials for Small Business
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Estimating the number of customers
From the course: Finance Essentials for Small Business
Estimating the number of customers
- Answering the question how many customers can we expect is the hard part. Please don't gloss over this question. Your business will fail or succeed based on the answer to this question. How many customers can you realistically expect? In our restaurant business, we need to know how many customers to expect every shift so we will hire more or less people depending on expected customer demand. We will need more or less food based on customer demand. Many costs will vary based on anticipated customer demand. Answering this big question is beyond the scope of this video but it would involve such things as scoping out your competitor's volume of business, assessing expected population growth in your area, surveying potential customers, and a whole host of things. Your forecast of sales will be critical in helping to prepare your forecast of cash inflows and outflows. So, to our example. I've done a very careful…
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