The number of units they will sell in order to cover their running costs is a matter of concern for all business owners. When you are at the point of break-even, you will celebrate: you're no longer in the red and you make a profit officially. This article will show you how your break-even point can be measured to allow you to make wise business decisions that encourage further growth. Why is your break-even point important? Enterprises who seek to run a business without knowing if or not they will be successful will probably not survive for a while. Knowing your tipping point is useful if you want to invest in growth or decide on the viability of your business (e.g. cost-benefit analysis). Another significant benefit is the precision of your budgets and forecasts to know exactly how much you need to raise to start profit growth. What are your fixed costs? In determining your break-even point, the first move is to list your stable, continuous monthly expenses.
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