Page 48 - MICROHUB Handbook - ENGLISH

Taking a step back and considering all the various main elements of

your business model identified above:

What are your specific operational objectives for the next 6, 12, 24

and 36 months?

What are the Key Performance Indicators (metrics, time-bound targets)

to track business progress and success? For example, when do you plan
to equip, furnish and open your workshop? How many promo and

selling channels to establish and by when? How many customers do you

plan to reach and by when? How many products to manufacture

and how many to sell? How many and what type of employees

and collaborators? How many repeat customers and referrals?

Establishing such clear operational objectives and KPIs along

a specific timeline will allow you to properly estimate your

costs and revenues, as well as calculate the economic return (profit)

that your business would generate, being the extent to which your

revenues are surpassing your costs. In turn this would allow you to
consider how you could increase your revenues (by more sales,

higher pricing) and decrease your costs (by productivity improvements,

working at full capacity or sharing assets and staff), hence generating

higher returns on the resources used (revenues > costs = profits).

Ultimately, such analyses will indicate your business feasibility (if

generating profit within a reasonable timeframe), and if and how

much initial financing you need to start or grow your business.

Want to know more? Further information relevant to financial
planning and management is also available in Module 4.

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