Deprecated: mysql_connect(): The mysql extension is deprecated and will be removed in the future: use mysqli or PDO instead in /home/a26f9f83/public_html/articles/includes/config.php on line 159
A Rough Cut on Feasibility > NetSparsh - Viral Content you Love & Share

A Rough Cut on Feasibility

A piano tuner recently moved to Buffalo, NY, and would like to assess the business possibilities for him in his new home. He plans to estimate how many piano tuners the greater Buffalo area can support, and compare that to the number listed in the phone book. How do we advise him as to how to estimate the "right" number of tuners for the area?

One approach is simply to guess. Would it be 1, 10, 50, or 100? Are you comfortable with this approach? I am not. An approach I would be comfortable with would be to search for data on estimates of how many piano tuners per capita there are in the U.S., and apply that ratio to the Buffalo area population (let's use 1.3 million). Is data on this likely to be available? Test your resourcefulness by trying to find it.

Assuming that data is not available, we must go to the "some assembly required" approach to estimating, that is, deriving the estimate from data which is available modified by related local and national data, norms, and "rules of thumb." While this seems so indirect as to be little better than just guessing, it can be a very useful exercise. If nothing else, it causes us to identify some important variables and how they relate to our business of interest. The inaccuracies of compounding estimates can be minimized by working in ranges to give us a "ballpark" figure.

How can I derive a meaningful estimate from generally available information? It would be interesting to know what percentage of American households own a piano, and how often they get it tuned. If the data is national, we may need to apply some local adjustment factor. Given the annual number of piano tunings, we can divide by the annual capacity of a tuner to determine how many are needed.

I will do an "off-the-top-of-my-head" calculation to illustrate the method, then leave it to you to provide real values:

Buffalo has about 400,000 households population divided by 3 members average); 8% of American households own pianos. I can think of no reason to apply any local adjustment to this figure, so we are talking about roughly 32,000 pianos. My guess is that two-thirds of all pianos are merely furniture, so that the remainder of about 11,000 are played regularly and in need of tuning. Tuners recommend that a piano be serviced twice a year, but my guess is that the average is probably once a year for active pianos, or 11,000 tunings per year.

A tuner can service 2 to 4 pianos a day; let us say 3 per day, 5 days a week, 50 weeks a year, or 750 tunings per year per tuner. To provide Buffalo's 11,000 annual tunings would require almost 15 tuners. The phone book lists 9. Sounds promising!

How do you like this? How many would you have guessed without this analysis? Does the result seem reasonable? Enough on which to base the opening of a business?

Could it have been done more scientifically? How? Would discussions with piano tuners and music stores have been useful? Are there any journals worth consulting? Would a survey have helped?

Are pianos in places other than homes? Are there tuners not listed in the yellow pages?

The Census of Retail Trade provides the average number of stores per capita for a variety of retail outlets. Based on their data, we can determine how well our proposed market area is served on a relative basis for the type of business we plan to start. For example, there is, on average, a stationery store for every 33,000 people; for every 26,000 people there is one bookstore and one nursery and garden supply store. The population can presumably support a barber shop for every 2,200 residents, and a furniture store for every 3,000.

John B. Vinturella, Ph.D. has almost 40 years experience as a management and strategic consultant, entrepreneur, author, and college professor. For 20 of those years, Dr. Vinturella was owner/president of a distribution company that he founded. He is a principal in business opportunity sites jbv.com and muddledconcept.com, and maintains business and political blogs.

In The News:

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news

Automotive Buy Sell Report (blog)

Prepare for the future with strategic planning
Automotive Buy Sell Report (blog)
The one thing with change is that it is constant. Knowing this, are you prepared for the future and what change is going to occur? A rhetorical question, but one that begs us to consider the importance of strategic planning, as it can prepare you for ...


EastCountyToday (press release) (blog)

Thursday: East Contra Costa Fire to Host Strategic Planning Session
EastCountyToday (press release) (blog)
After a hosting a series of Town Hall Meetings, the East Contra Costa Fire Protection District will host a strategic planning session on Thursday, July 9 from 6:00 pm to 8:00 pm. While the Town Halls focused on education to residents about the District ...

and more »

Communique

UCCS kicks off 2030 strategic planning process
Communique
UCCS will utilize the experience and services of JERA Partnerships in facilitating and developing the 2030 strategic plan in collaboration with the many university stakeholders. Diane Zile, JERA CEO and founder, and her team engaged the Chancellor's ...


Forbes

Legacy Planning: Getting Started
Forbes
Strategic planning aligns your values and goals with your overall investment strategy and wealth plan. Sometimes starting with a simplified picture of your wealth—in other words, understanding what's already in place—can help identify what changes ...

and more »

Task Force Runs Through Strategic Plan
PrimePublishers.com
SOUTHBURY — From time to time over the past 20 years, or perhaps even longer, there has been talk around the Town Hall about creating a Strategic Plan for Southbury. The concept was not adopted until the 2009 edition of the Town Charter came out ...


Forbes

The Impact Of Talent On Strategic Planning
Forbes
Is your organization planning its current and future talent needs with the same level of energy devoted to its strategic plan? Your human capital plan must fit hand-in-glove with your strategic plan. A disciplined approach to your talent planning is a ...


ATD

Strategic Workforce Planning for Government's Reorg
ATD
The report explains that “strategic workforce planning should precede any staff realignments or downsizing, so that changed staff levels do not inadvertently produce skills gaps or other adverse effects that could result in increased use of overtime ...


Forbes

The Case For Establishing A Winning Strategic Framework
Forbes
Focus on doing a few things well, and it will lead to higher growth. 4. Your traditional strategic planning is not strategic at all. This results in a less innovative organization and competing priorities. Organizations get caught up in identifying ...


Southernminn.com

Manufacturers talk strategic planning
Southernminn.com
The basic process should involve identifying a particular process to use and gathering information in pre-planning. The planning should be done off-site, include key internal and external leaders, use a facilitator who doesn't need to contribute and ...


TAPinto.net

Downtown Red Bank - 2nd Strategic Planning Initiative Tonight
TAPinto.net
Red Bank RiverCenter will hold its second Strategic Planning Initiative meeting at the Oyster Point Hotel for residents and business owners to participate in the development of a strategic plan for a unified vision and voice for the borough's downtown.

Google News

Menu Driven Business Planning

A menu is the foundation of any restaurant; Guests will... Read More

Sony?s PSI Project

In 1989, Sony founded its Institute of Wisdom at the... Read More

Take A Systems View To Ensure Your Business Stays Healthy

How are you feeling today? Good, not so good, great?... Read More

What is Your MSP?

For many consumers and producers, MSP is an acronym for... Read More

Writing Your Business Plan is Actually Storytelling

Storytelling and writing a business plan actually go hand in... Read More

Creating a Vision That Achieves Results

How important is a vision statement to your company or... Read More

TQM Total Quality Management, the book

Every decade we seem to come up with a buzz-word... Read More

Five Crucial Components of a Business Plan

The format of a Business Plan is something that has... Read More

Cost-cutting Essential to Maintaining Profits

Why cut costs now? Efforts are multiplying to cut costs... Read More

Resilience

I. INTRODUCTIONThe term resilience, which is of frequent use in... Read More

Thinking Like A Farmer

One of the difficulties we face in our industrialized age... Read More

5 Strategies That Will Boost Your Business Productivity Today! - Part 2

Growing your own small business can be one of the... Read More

Have You Identified the Enemy?

One of the most powerful driving forces in human nature... Read More

How To Kick Start Your Business And Double Your Profits

This will make some people angry as hell, but it's... Read More

How To Get More Business During The Winter Months

Business seems to drop, slow or even stop during the... Read More

Attributes of Companies You Dont Want to Buy!

There are no "rules of thumb" in the pursuit of... Read More

The Chasm of Change---- Restructuring ----- The Goliath

Richard L. Daft one of the country's recognized academic leadership... Read More

The Top Five Reasons Strategic Plans Fail

"Most great plans aren't. They are just nice, high-level ideas."That's... Read More

Why Do a Business Plan?

To Grow (Catapult) Your Business That's Why.When it's in your... Read More

What is a Shared Vision?

So what makes a vision successful? Everyday companies try to... Read More

How to Start A Business Plan

A business plan precisely defines your business, identifies your goals,... Read More

Water Conservation and Water Issues for Mobile Car Washers and Auto Detailers

Obviously, there will never be an actual water shortage since... Read More

Microsoft Great Plains Implementation: Pharmaceutical Corporation Specifics ? overview

Microsoft Business Solutions Great Plains serves mid-size and large clients... Read More

Idaho Market for Automotive Businesses; Doing it Right

Anyone who has been watching the Idaho Market Carefully for... Read More

Strategic Planning Consulting

Strategic planning and consulting is the strategy roadmap to manage... Read More