Do you know your “Break Even” Point?

Have you ever wondered how much work you need to turnover and at what profit margin to exactly cover your “running costs” or “fixed expenses?”. In other words have you ever accurately calculated the Break Even Point for your business?

If you’re even mildly curious about your “business development” you’ve probably at least thought about your break-even point but maybe you never found the time to figure it out or you never had a user friendly calculator to punch your numbers into and get the result, right?
The fact is if you’re in business and you don’t know your break-even point, then how do you know when you’re making a profit?
Before you start feeling frustrated about this often irritating little detail of business the good news is, that’s all about to change. We’ve created a very simple Free, Break Even calculator to help you calculate the break-even point for your business right now. All you need are some accurate financials, then click the link and follow the three easy steps below to calculate your break-even point in two minutes flat;

Start Here >> Breakeven Calculator

Step 1: Get an accurate copy of your Profit & Loss. Note its imperative that your numbers are as accurate as possible otherwise the result won’t mean a thing. So make sure the income and expenses listed in your P & L are up to date and accurate.

Step 2: Also ensure that you’ve separated your “Cost of Sales” from your “Running Costs” or “Fixed Costs”. If you’re unsure about this, make sure you ask your bookkeeper, and if they’re unsure give us a call we’ll walk you through it.

Step 3: Punch your numbers into the Yearly or Quarterly space on the calculator and hit each of the three calculate buttons to get your Gross Margin, Break Even and Net Profit figures.
Now here’s the thing, once you’ve calculated your break-even point, you can play around with the numbers and gauge the result to your bottom line when you shave 2% of your Material costs and/or increase your pricing by 4%. Also use the top part of the calculator to work out your Gross Margin on individual jobs and find your most profitable work. Chances are, 80% of your profit is coming from 20% of your work.
Have fun!