===== What Assumptions Should You Make? =====

By pressing the Done/Next button at the bottom of every assumptions screen, Offtoa will walk you through every assumption you need to make. The assumptions include:

  - What **products**  will you sell? What features will they have ? See the [[https://www.offtoa.com/wp/?p=168|www.offtoa.com/wp/?p=168]] blog.
  - Which **markets **  will you sell to? Which vertical market will be your **initial target market**? What are their biggest pain points? See the [[https://www.offtoa.com/wp/?p=176|www.offtoa.com/wp/?p=176]] blog.
  - At what **price**  (s) will you sell each product for in each market? What type of **promotions or sales**  will you conduct? See the [[https://www.offtoa.com/wp/?p=213|www.offtoa.com/wp/?p=213]] blog.
  - How much will it cost you to acquire each new customer? This is called your **customer acquisition cost **  (CAC). How long does it take to acquire them? This is called the **sales cycle**.
  - For each customer who purchases from you, how much will they spend each time they purchase? This is called **average order size**  (AOS). How often will they make such a purchase (it could be just one time, or it could be monthly, or quarterly, or annually, etc.). This is called **purchase periodicity**.
  - How many customers remain customers after one year? This is called the **retention rate**.
  - For each new customer, how many other customers do they refer? This is called the **viral coefficient**. How long does it take for them to make the referral? This is called the **viral cycle**.
  - If you are a reseller, wholesaler, retailer, or distributor, what does it cost you to purchase your products? If you are a manufacturer, what do you raw materials cost and what does it cost you to manufacturer? This is called **cost of goods sold**.
  - How many **employees**  will you hire? How will you compensate them?
  - Will you be paying **commissions**?
  - What **expenses**  will you incur? Travel? Legal? Rent? and so on.
  - What **major** **purchases**  will you be making? These are called fixed assets. Machinery? Computers? Real estate? and so on.
  - What **loans**  do you expect to receive? How much? When? What terms?
  - What **investments**  do you expect to receive? How much? When? What terms?
  - **Payments**. How soon do you expect customers to pay you? How soon do you expect your suppliers will want you to pay them?
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