Marketing - Winning customersForecasting <strong>and</strong> targetsOnce you have made your key decisions <strong>and</strong> determined yourstrategy, you are now ready to forecast the results. A salesforecast is a month-by-month forecast of the level of sales youexpect to achieve <strong>and</strong> is an essential tool for managing a<strong>business</strong> of any size. Most <strong>business</strong>es draw up a sales forecastonce a year, basing it on their knowledge of likely customerbuying patterns, as follows.• How many customers <strong>and</strong> sales can you expect each month?• What is the average spend on each type of sale?• What seasonal variations exist?• How <strong>and</strong> when will you be paid?• What is the maximum level of sales possible in a year?• What level of sales do you require to break even?• What lead times <strong>and</strong> conversion rates can you expect fromyour promotion?Once this is done, an action plan can be produced as follows:Did you know…• a comprehensive marketing plan will lead tosuccessful marketing.• make sure you are SMART about yourmarketing objectives.• forecasting your sales will help you keep tobudget - <strong>and</strong> keep track of where you wantto be.“Really successful people don’tlive in the present. They imaginethe future <strong>and</strong> visualise what theircustomers want.”Robin Rowl<strong>and</strong>, CEO, Yo Sushi!• Who is going to do what <strong>and</strong> when?• How long must each activity be sustained?• How often should it happen?• How much will it all cost?Finally, calculate how much money needs to be allocated toeach month’s activity. This becomes your marketing budgetwhich can be transferred into your <strong>business</strong> plan.13
Finding suitable premisesChoosing the right premises is a key <strong>business</strong> decision. You want premises that help you operateeffectively without excessive costs, but you want to avoid being tied to premises that might not suityou in the future. This section will help you assess your requirements, advise you where to go to findthe right premises <strong>and</strong> show you what to be aware of before signing any agreement.Working from homeDifferent options suit different <strong>business</strong>es. If all you need is a<strong>small</strong> office space then working from home may be a much betteroption than renting or buying <strong>business</strong> premises. However, youwill need to think about properly equipping your workspace, soget yourself a comfortable workstation <strong>and</strong> consider any potentialhazards to yourself, workers, visitors <strong>and</strong> other members of yourhousehold <strong>and</strong> how you can reduce the risk of accidental damageto your work or equipment.Working from home can also have important consequences foryour mortgage, insurance <strong>and</strong> tax position. For example, yourmortgage might not allow you to use your home for working, <strong>and</strong>your insurance might be invalidated if you do so. There are alsolegal considerations - you might need planning permission, oryou may become liable to <strong>business</strong> rates. Even if you just havea <strong>small</strong> home office, or work on client premises, you’ll need tothink about health <strong>and</strong> safety. You must carry out a health <strong>and</strong>safety risk assessment, taking into account the kind of work youdo <strong>and</strong> the risks to other people.You will also need to think about how to separate your work <strong>and</strong>home life when both take place in the home. You need to avoidbeing disturbed when you are working but also need to be ableto relax during your time off, without being interrupted by work.Renting or buying premisesRenting or buying premises outright may be the best route, butthere are a number of important factors to consider before youmake the move. The first is the cost of premises. After wages,premises are the second highest overhead for most <strong>small</strong><strong>business</strong>es <strong>and</strong> can include:• initial purchase costs, including legal costs such as solicitor’sfees;• initial alterations, fitting out <strong>and</strong> decoration;• any alterations required to meet building, health <strong>and</strong> safety<strong>and</strong> fire regulations;• ongoing rent <strong>and</strong> service charges;• <strong>business</strong> rates;• continuing maintenance <strong>and</strong> repairs; <strong>and</strong>• building <strong>and</strong> contents insurance.With a typical lease, you agree to occupy the premises for a fixednumber of years <strong>and</strong> pay an agreed rent, though the lease mayallow the rent to be reviewed periodically. Upfront costs forleasing premises are often relatively low, though you may pay apremium to purchase the lease. Sometimes you may have toprovide a refundable deposit. You should also take into accountthe legal fees.However, there are disadvantages to renting. You may havesignificant maintenance <strong>and</strong> repair or other obligations <strong>and</strong>restrictions. You may also have difficulties if your needs change<strong>and</strong> you want to move before the lease ends.If you do choose to buy, it can have several advantages asfollows:• you control your own premises <strong>and</strong> can stay there as long asyou like;• you can choose to occupy the premises yourself, rent them tosomeone else, or sell them;• your costs are relatively fixed, particularly if you have afixed-rate mortgage, whereas rents can increase significantlyover time;• you can alter the premises to suit yourself - subject to legalrestrictions; <strong>and</strong>• over the long-term, the value of the property may rise.Against this, you have to weigh the disadvantages. Buying propertyis an expensive <strong>and</strong> often time-consuming process, involvingsignificant professional fees <strong>and</strong> stamp duty. You’ll also beresponsible for all the maintenance <strong>and</strong> repairs. If your needschange, selling the property can be difficult <strong>and</strong> expensive, <strong>and</strong>you might find that the value has fallen.Other factors you need to think about include:1. The type of premises you need: retail space includes marketstalls, retail accommodation with short-term licences <strong>and</strong>typical high street shops. Industrial space includes factoryspace <strong>and</strong> <strong>small</strong> workshops in managed workspaces.You may require office space of the type available in anumber of managed <strong>business</strong> centres <strong>and</strong> serviced officeschemes. Whatever type you need, the correct size <strong>and</strong>layout are critical.2. Your physical requirements: this includes access hours,provision of central services such as photocopying, typing,natural light, loading bays, furniture, water <strong>and</strong> drainage,three phase electricity, computer cabling, parking, comfortfacilities (kitchen <strong>and</strong> toilets) for employees <strong>and</strong> visitors <strong>and</strong>other services or structural requirements that are important tothe success of your <strong>business</strong>.14
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