For many businesses, break-even is a critical milestone. It can be a make-or-break point for small businesses and signifies the point at which revenue from operations equals total costs. But what does break-even mean? And how do you achieve it? This weeks video Break-even explained shows you what need to know about break-even, including what it is, how to calculate it and tips for reaching it. So, watch to find out more!
So, what is break even? Break even analysis is the point at which your total revenue equals your total costs. In other words, it’s the point where you no longer make a loss and start making a profit. It can be an extremely useful tool for business owners as it gives you a clear indication of when you will start making money from your products or services.
It also allows you to test different scenarios (such as price changes) to see how they impact your overall profitability. You can do all of this without spending any money on market research!
As well as being financially beneficial, break-even analysis is helpful in terms of stress relief! For example, in my own business, knowing that monthly sales would cover my costs allows me to relax a bit more. My focus is on growing my business rather than stressing about every little detail. I want that for you. Watch Break-even explained to find out more
Check out my FREE online calculator that calculates break-even- just enter your numbers and hit calculate!
We are here for you
Are you ready to have an easier and more rewarding relationship with your numbers? My book, I Hate Numbers helps you get there.
This book is based on my 27 + years in business, helping thousands of businesses survive and prosper. It shares tips and shows you how to have a financially rewarding relationship with your numbers, Furthermore, my book will help with that battle between the ears, that all business owners experience. Learn more and buy my book today!
Get in touch with us to help make your life easier and stress free. Contact us if you need help figuring out and sorting your numbers, creating your future financial story plans, your tax , payroll and other accounting and business matters.