“I can’t believe it! Only THAT many customers and I break even???”
That was the reaction of a small tourism business owner who completed the Back of an Envelope Break Even Analysis in my lastest e-book, Marketing Free In 2010, Creating a Small Town Tourism Marketing Plan That Works! NOTE: For the latest update go to Take Control of Your Internet Marketing
Many small tourism businesses either set up a Quickbooks file or hire a bookkeeper to handle their day to day finances. But, as I learned from my friend and colleague, Susan Brown, handling day to day finances isn’t financial management, just like buying one print advertisement isn’t marketing.
Financial management is about knowing what you need to keep your head above water, so you can create a reasonable goal for what you want in the way of profits.
Having that information can help you plan your marketing.
If you have a retail store, it can help you plan your displays, grouping related items with best sellers to increase individual purchases.
It can help you focus your marketing attention on the things that will realistically get you to that break even point. Selling 1000 yoga rafting trips might not be realistic, but marketing and selling 1000 family member rafting trips is.
You can use the information to focus your marketing to sell your “bread and butter” trips or items or rooms or meals. And use your additional marketing time to grab attention for the special items that will help you to achieve your profit goals.
Your honeymoon suite, or Valentine’s Dinner needs special marketing, but if your break even point is based on your standard room and average priced meal, it’s easy to see what requires most of your marketing attention.
Sign up and receive Marketing Free In 2010 in the column next to this post, and let me know what insights you discover from calculating your own break even point.
NOTE: Click the link at the top of the page for the latest copy of my ebook on internet marketing.