October 2, 2014

Your Break-Even Number Should Be Burned Into Your Brain

How much do you have to sell to break even now?

Fixed costs (overhead) divided by gross margin as a %.

Example – if it costs you $50,000 a month for rent, loan payments, office salaries, utilities , insurance, etc. and your gross margin on sales is 40%, then $50,000/.4= $125,000 a month. So if you sold and delivered $125,000, and collected all the money, you make zero.

What’s your break-even now?

 

 

 

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Larry Janesky


Larry Janesky Larry Janesky is the Author of Think Daily for business people - a collection of daily business tips. He is an award wining author and the founder of a number of successful businesses, most notably Basement Systems and Dr. Energy Saver.

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