Plan: How to Find Your Break-Even Point

Plan Your Success for your Business

by Nicholas Tart · 0 comments

From Plan Your Success – Discover How You’ll Make Money

Okay, this’ll take about an hour, but it’s an hour well-spent. It’ll give you numbers so you’ll know exactly what you need to do to be successful.

Find Your Break-Even Point

  1. Get a whiteboard, planner, notebook, or calendar – something you can see and touch.
  2. Make a list of all the supplies, equipment, software, ect. you need to start your business.
  3. Find the lowest prices for everything you need on Craigslist, Ebay, or
  4. Look for student discounts (e.g. Adobe gives 80% off to students) if you’re a student.
  5. Total up your start-up costs and double it.
  6. Establish your pricing based on your costs, your competition and what you think customers will pay.
  7. Subtract your cost per product/service rendered from your price (to determine your profit).
  8. Divide your start-up costs by your profit per product/service rendered to find out how many customers you need to break-even and become a successful business!

A business becomes “successful” as soon as it becomes profitable. Services become profitable much quicker than products. You have the highest chance of being successful if you start with a service.

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