3

C hAp t e r

Choosing the Right Business ..................................................................................................

Introduction .................................................................................................................................................................22

Know Your Business .................................................................................................................................................22

Be Sure You Like Your Business ..........................................................................................................................24

Describe Your Business ...........................................................................................................................................24

Identify Your Type of Business .................................................................................................................25

Problem Statement ........................................................................................................................................27

Business Description ......................................................................................................................................27

Taste, Trends, and Technology: How Will the Future Affect Your Business? ...............................30

Taste ........................................................................................................................................................................ 31

Trends ....................................................................................................................................................................31

Technology ..........................................................................................................................................................3 2

Write a Future Trends Statement ...........................................................................................................34

Break-Even Analysis: Will Your Business Make Money? ........................................................................34

Forecast Sales Revenue .................................................................................................................................36

Forecast Fixed Costs ...................................................................................................................................... 40

Forecast Gross Profit for Each Sales Dollar ........................................................................................ 41

Forecast Your Break-Even Sales Revenue ............................................................................................43

What You Have Accomplished ..........................................................................................................................47