What's Your Breakeven Point?

Understanding what level of turnover your company needs to achieve to break even is of the highest importance.

Laying down figures

On a simple level, list out all of your business' monthly costs and then determine what you need to sell in order to break even. We have set up a really useful pro-forma spreadsheet that you can use for exactly this purpose.

Setting targets

Setting targets is really important! Make sure you set and monitor your sales and costs over the course of the whole month, so that you show a profit after your salary, dividends or drawings. And remember that if you only aim to break even, you will probably lose money, so be careful what you set yourself as a target. Be realistic, but challenge yourself!

This is a simple strategy that you can implement yourself, but of course we are here to help and make the process quicker and less painful.