|
Previous: Turn Your Fax Cover Sheets into Sales Tools
Next: Email Mistakes To Avoid
What's Your Break-Even Point?
by Janet Attard
 Will your new business make money? At what point will you start making a profit on the new product you plan to introduce?
Don't guess. Determine the answer in advance by doing a break-even analysis.
Calculating your break-even point is a good exercise if you're already in business, too. If you don't know the break-even point on your various products and services, you can't accurately determine which are most profitable to provide.
A break-even analysis tells you what volume of sales you need to do to break even on a product or service. In other words, how many fishing lures, or how many fish dinners you'll need to sell so to bring in enough dollars to cover all the costs involved with making those sales.
If you try to launch a new product or service without a break-even analysis, you're likely to forget about indirect costs such as overhead, salaries, rent, marketing and advertising expense, insurance, and other costs that are incurred by the business.
More >> Break-Even Analysis
Posted by Janet Attard on October 30, 2007 at 8:46 AM
| Comments (0)
Post a comment
|
