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Ed's AV Handbook
Batting practice for the AV Professional
and primer for the novice

Chapter 10  Page 1

AV Business & Marketing

Business Straight Forward

Business is straightforward.  Sell more than you spend.  The less linear issue is to who, what, where, and how? 
The answer lies in sighting a heading, surveying the playing field, drafting a strategic and tactical plan, implementing the tactics,
assessing the results and executing prescribed adjustments.
 
Compass heading
Aim your business & marketing scope at prospective customers.  Identify their desires.  Define products and services to fulfill their desires.  Your customer prospects are the business compass heading.  Consequently, all business activity must ultimately be aimed at inviting your customer prospects to do business with the business.

But before you proceed
Find the
sales number needed to breakeven with a trial profit & loss guesstimate:  

[ Salesless  [ Estimated Operating Expenses + Cost of Goods Sold  $ 0.00

This result is not a sales forecast.  It's simply the number needed to cover all costs.  If the number appears feasible, then continue.
If  you want a more qualified number, check out page 6,  'Sales Forecast Calculation'.

Survey the playing field
Readjust your business & marketing scope to the spheres of business you cannot influence: the national economy, the economic status of your trade area, and the competition.

Handbook Note: The trade area is the geographical boundaries of where your customers reside -- your market.

National economy
What are the gurus of finance projecting regarding the national economy?  How do global trends influence key-resources such as oil?
How are major industries performing?
 What are the economic effects of the federal government?  Use this data and the following to form your survey.

               - The Federal government's fiscal and tax policy
                   Tax cuts generate positive economic trends.
                   Tax increases generate negative trends.
                   Increased government spending can generate short term adrenaline boosts.

               - The Federal Reserve monetary policy
                    A low inflation policy supports a positive trend.
                    High inflation robs consumer purchasing power which leads negative.

               - Energy prices
                    Stable low energy costs supports a positive trend.
                    Increased energy costs decrease discretionary spending which leads negative.
 
               -  Medium income
                     Increasing incomes puts more dollars in customers pockets -- a positive trend.
                     Decreasing medium income reduces discretionary spending -- not good.


Local economy -- Survey the economic status of your projected trade area.
               -  Real estate, automotive, and large retailer sales are reliable indicators.
               -  Increasing sales tax revenue without a tax rate increase is a positive trend.  The inverse is not. 

                   Tax data is available via city hall or the county.

                   
Competition --  Assess significant competitors.
                  - Survey competitors locations, product mix, promotional activity, sales and installation staff.
                  - A personal visit and a handshake can generate significant competitive information.
 
 

Go or no go?
Does your project still seem feasible?  If yes, then move forward to the next page.

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Ed's AV Handbook   
Copyright 2007 Txu1-598-288 Revised 2021


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