If you run a restaurant, this would be your average check total, if you run a consulting firm that works on monthly retainers, it would be your average invoice, if you are a plumber, it would be your average service call.

If you run a restaurant, this would be the number of times a patron is likely to return in the course of a year, if you run a consulting firm that works on monthly retainers, the answer might be 12 because there are 12 months in a year, if you are a plumber, this would be the average number of times you would return to a service address during a typical year;

In a service model, we would usually base this figure on the number of months that a relationship lasts, looking at all of the customers that have left over the past 1-3 years (or as many years as you need to go back to get a good sample size), averaging the number of months that they stayed with you before leaving, and dividing by 12. If you have good data to draw from, take an average from a representative sample of real customer data. If your business is more transactional, see what data can be pulled from your accounting or POS system. If that does not work, you can try to find industry data available on average client retention rates or if your business is based on a limited geography, you can use the assumption that Americans move every 4-5 years on average.

Include all advertising, sponsorships, trade shows, web expenses, collateral printing expenses, travel, salaries, bonuses, software, overhead, etc. for the last year.

Including all salaries, bonuses, commissions, travel, overhead, etc. for the last year.