David Geller, Former owner of Jewelry Artisans and now President of Jeweler Profit: ”Its really a simple start, First project your expenses for the first year, then when you’re done, add 25% more in for error.
After projecting expenses, if you know the profit margin your product brings, project out how much to pay expenses.
Lets say expenses are projected to be $400,000.
if you double product costs, then $800,000 in product SALES will leave $400,000 in gross profit, just enough to pay expenses and break eve. (So go higher so you can make a profit at the end.
So now you know $800,000 is the number to do this year, break it down my month, December being 25-40% of the years total.”Now you have your goal set. Can you bring in that much business? What will it take in advertising and promotions to do this volume? Do you have some cash set aside in cash the 1st few months are rocky?"