I have this little calculation here, calculating how much potential profit each farmer in my local farmers' market can make in one day based on the overall revenue of the farmers' market and the number of farmers participating.
However, putting this thing as it is straight into my business plan makes it look cluttered and hard to follow. Is there a way it can be rewritten/abstracted into one of those beautiful math equations? Ie. using https://khan.github.io/KaTeX/?
- Yearly farmers' market revenue: $2.1mil / 360 = $58333 per day
- $58333 / 67 competing farmers = $870 in potential revenue per day per farmer
- 3% profit margin (was 5%, but farmers' market takes 2% commission) of those $870 = $26 in potential profit per day per farmer
Obviously, this model is highly inaccurate and there are lots of other factors that come into play. Ie. not every farmer will make the same amount as some might have been around for longer, some might sell more products, some might be better at branding/packaging, some might have better looking stalls or just enjoy greater trust from buyers etc. But I figured I'd factor those in later once I have an actual formula to work from.