Plan for a lucky break-even
One of the most important tools for planning your business and monitoring its progress is a financial one – break-even analysis. Here’s how to make it work for you.
What does break-even analysis do for us?
An alarming number of people go into small business with little or no understanding of the financial side of running a business. I’ve spoken to one woman, for example, who is setting up a company to sell educational materials to child-minders. It seems to me that it’s a good idea and very much of its time. When I suggested she draw up a spreadsheet of her costs and estimated revenues she replied that she just couldn’t get her head around figures and was going to leave all that to the accountant. To be honest, ...