Lets say that your retail store is a maternity clothing store. From your market research you learned that there are 2000 births in your market each year. Also you believe that about 70% of these people will shop at your store due to lack of competition in your niche. Based on your product pricing you believe that each sale will average $100.00.
From a survey you did with your relatives and friends you found that the average client will spend $500 total on maternity clothing and you believe you can capture about 70% of those dollars conservatively.
Using the above numbers your projected sales would be:
$100 X 1400 clients X 3 shopping trips = $420,000
$350 capture (of the $500 average) X 1400 client = $490,000
so your projection should reflect a sales potential of $420K-$490K annually.
Also, you have to be able to deliver that level of sales so obviously you would need the appropriate number of square footage, employees, etc to deliver $450,000 in sales.