O'Reilly logo

The Business Plan Workbook, 7th Edition by Robert Brown, Paul Barrow, Colin Barrow

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Assignment 21

Break-even analysis

Calculating your break-even point

While some businesses have difficulty raising start-up capital, paradoxically one of the main reasons small businesses fail in the early stages is that too much start-up capital is used to buy fixed assets. While some equipment is clearly essential at the start, other purchases could be postponed. This may mean that ‘desirable’ and labour-saving devices have to be borrowed or hired for a specific period. This is obviously not as nice as having them to hand all the time, but if, for example, computers, word processors, photocopiers and even delivery vans are brought into the business, they become part of the fixed costs.

The higher the fixed-cost plateau, the longer it usually ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required