Explore the market before preparing financial plans
. After research you have to realize the things as follows:
1. Market volume, i.e. what is the daily revenue from the sales of the similar product on a given territory.
2. Competition. It's important to know not only the quantity of competitors, but how much they earn. Moreover, it's necessary to analyze your competitors’ strong and weak sides and compare the results of analysis with the opportunities of your future business.
3. Price level. It's necessary to understand what is the average price for the similar product or service. Such understanding allows you to have a starting point, that will help you predict future costs.