Intro and Help with $ Market Estimation (for mulching)
Questions about the attached video: 1. Jimmy Shrake 2. Thinking of starting a mulching biz. 3. Houston/The Woodlands, TX 4. Help with. The basics biz plan and assumptions for now 5. Previously owned $2.5 mil manufaturing business selling on line, so I know Entrepreneurship and online sales and marketing, but not this industry. I'm in the greater Houston, TX area, North Houston. (~10-12 million people in a 50 sq-mi radius) trying to work this math for my case. I went to Google adwords and found the following: 100-1,000 searches for - 5 related keywords (forestry mulching, land clearing, land clearing contractors, land clearing near me, land clearing services) so that could be counted as 2,500 at 500/ea x 5 10-100 searches for 30+ other related keywords 30 x 50/ea counting the same way =1,500 so 4,000 is the Total counting like this Am I doing this right to get a starting point? @Jacob Neffendorf, how are you determining the number of searches you use for this metric? 4,000 Total 400 if 10% to my www site (this seems high to me, for my area anyway. I'm sure there are 100+ people doing this here) 40 if 10% of those call or fill out www form 8 closed sales if I close 20% (he shoots for 20%, plenty of people do way better than that) Another way to look at this is, that's 2 closed per 1000 searches or 0.2% 8 closed x $5,000 avg ticket is $40/K mo gross, $16K/mo net (@ 40%) $480,000 /yr gross, $192,000 net (@ 40%) Is 40% gross margin reasonable? Conservative? or more on the optimistic side? I could get by with 1/3 of this estimate, be happy with 1/2, be very happy with all of it.