Post by samidhasan192 on Apr 30, 2024 4:56:19 GMT
Break-even point, or how not to get lost in an ocean of commercial opportunities. And risk seeing your company founder. If in the past it was essential for a commercial or entrepreneurial activity to weigh all business decisions and choices, today it has become an essential condition . The break-even point ( BEP ) is the best compass that guides the entrepreneur's activity. What is meant by break-even point? BEP is the break-even point of any business. A simple number, but with a crucial meaning. The break-even point indicates the exact point at which both the company's profit and losses are equal to zero.
BEP = Profit + Loss = 0 The break-even point helps you understand at what level of turnover you will start earning with your El-Salvador Phone Number List company. If you own a business or want to start one, it is essential to carry out a risk analysis . Break-even point analysis is a tool capable of significantly reducing the possibility of making inappropriate or risky commercial choices. break-even point graph go to sales integrated commercial strategies The revenue graph showing the break-even point, costs and related break-even point or revenue Mainly, it allows you to know what is the minimum turnover volume that your company must achieve in order not to record losses of any kind. However, knowing that you are on the right course also presupposes another equally important piece of information. You must be well aware of the commercial objectives to be achieved .
Having precise business objectives allows you to guide your company's choices in a targeted way. This way you can focus on what is useful and put aside what can "derail" the activity. Waste of resources Overestimated assets Superfluous or completely useless processes. All this does nothing but lead to a single result: the increase in unproductive costs. What is the break-even point for? Having a clear idea of what your company's break-even point is provides two useful indications. The first is to know what production (or delivery) rate your company must sustain to break even. For example, if my break-even point is 110 thousand euros and I have a closed month, it means that to earn I have to make at least 10 thousand euros a month, i.e. on average around 400 euros a day (if I work six days a week). The second is to become aware of the need to maximize the sales process .
BEP = Profit + Loss = 0 The break-even point helps you understand at what level of turnover you will start earning with your El-Salvador Phone Number List company. If you own a business or want to start one, it is essential to carry out a risk analysis . Break-even point analysis is a tool capable of significantly reducing the possibility of making inappropriate or risky commercial choices. break-even point graph go to sales integrated commercial strategies The revenue graph showing the break-even point, costs and related break-even point or revenue Mainly, it allows you to know what is the minimum turnover volume that your company must achieve in order not to record losses of any kind. However, knowing that you are on the right course also presupposes another equally important piece of information. You must be well aware of the commercial objectives to be achieved .
Having precise business objectives allows you to guide your company's choices in a targeted way. This way you can focus on what is useful and put aside what can "derail" the activity. Waste of resources Overestimated assets Superfluous or completely useless processes. All this does nothing but lead to a single result: the increase in unproductive costs. What is the break-even point for? Having a clear idea of what your company's break-even point is provides two useful indications. The first is to know what production (or delivery) rate your company must sustain to break even. For example, if my break-even point is 110 thousand euros and I have a closed month, it means that to earn I have to make at least 10 thousand euros a month, i.e. on average around 400 euros a day (if I work six days a week). The second is to become aware of the need to maximize the sales process .