Our plan calls for sales of nearly $600,000 this year growing to $1.2 million by 2009, on marketing expenses of slightly more than $200,000, which is about 35% of sales. By the last year in the plan, our marketing expenses of $480,000 will be only 25% of sales.
The plan assumes two important trends:
First, a steady decline in cost of sales and growth in gross margin percentage as we build more of our resources, as full-time personnel and fixed costs instead of contractors and outside consultants. That means that as we grow we take on more risk -- if the plan is implemented. Step by step we'll have to watch the growth of sales relationships that imply the advisability of taking on more people as partners and employees, instead of as contractors.
Second, a decline in marketing expenses as a percent of sales. The 35% figure we project for the first year is quite high, unacceptably high except that we are building a reputation and marketing without the leverage of past marketing, starting from zero. By the fifth year of the plan, we should be spending 25% of sales on marketing. This is a better figure.