Welcome to today’s episode of I Hate Numbers where we talk about break-even. Making profits is what your business should aim to do. The financial milestone before that is for you to break even. Knowing your break even gives you better business insights, greater accountability and helps you make more profit in your business.
What is break even?
Your business breaks even when your sales covers all your costs, neither a profit nor a loss is made. However, you can look at break-even for your whole business, or for your individual products and services. Listen in to learn more.
Calculating your business break even
Figuring out and looking at your costs is the first step. You need to understand costs in terms of how they react and behave according to your business activity. In this podcast we revisit Fixed and Variable costs. We talk lemonade selling to illustrate break even, listen to find out more.
Conclusion
However, that is not all, break-even analysis can also show you how much profit or loss you can make at different sales levels. Break-even is your powerful business management tool. Connect to your break-even and see what it means for your business.
What Next
Grab a coffee, make yourself comfortable, sit back and listen. Start thinking about the costs that stay static and those that change in your business. Think about your own business break-even.
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In this episode
- Why knowing your break-even is such a big deal ?
- How to calculate your break even
- Developing your own Numbers confidence and decisions
- Take more control of your numbers to help make money