I have been posting a few things here and there lately on this forum and the answers that I have received are worth a thousand hours of research. I have been doing SO much research for my business plan but coming up short on answers. That being said I believe I have read every single posting in this forum! I still have answers and I am sure most of them will only come in time but I am stuck on finding answers to a few.
When doing market research I find EVERYONE’S market is different. I have read everything on here about getting a rough idea of how much business to expect but with so many factors in play I can not seem to narrow anything down in a “fact” based number. For example here is my general demographic of my area…
Total household …1 mile-2,994…3 mile-10,105…5 mile-17,527
Average house hold age 39
Average house hold income $62,000
Average house hold size 2.3
Food expenditures away from home is - $2,756.14 per year per household
Competitors in a 3 mile radius (Pizza competitors, NOT all restaurants)
LC (big dinning area with a buffet)
John’s Pizzeria (independent) sit in and carry out only
Pizza Co (Independent) Delco only
My concept…Wood fired pizza, NO delivery (at least not in the beginning). Locally sourced when available. VERY VERY heavily community based business. (no others are taking this route in our area) All fresh and “customize your pizza” approach. Have a service line with the drop in cooler wells in front of the customer (like subway). I make my own dough (most everyone does now) I make my own sauce and know how to make my own cheese.
Now with ALL that yacking I just did. Do I take a percentage to figure market share? Do I use the old $17 per house hold (which I have NO idea where that number even came from)?? $1-2$ per address?? .50 cents per address?? Shoot from the hip and make numbers up?? (just kidding, not what I am looking for!) For a business plan how should I come up with a market share number?
I understand that to find out if this is a viable business that I will need to do a break even analysis, which I am doing, but I need something to compare it to, to at least see if there is a market to have. Everyone in my area that I have tried to talk to in the business are all locked-traps with any info. My favorite place to eat in town (the Pizza Co) the delivery driver said they do about 150-200 orders a day. With a report my SBA counselor helped me find says they average $170,000 a year in sales, something does NOT add up. I think I just may be confused.
I’m just curious of what others have done, ANY advice on this is greatly appreciated.
Thanks in advance…