What’s your breakeven point?

The latest business guidance from our Managing Partner and Founder, Mark Norden…

Over the coming weeks, we’ll be discussing areas of your business that you can look at in order to recession-proof it.

The reality is that the strategies we’ll show you are things that we should all be doing on an ongoing basis to ensure our businesses are profitable; but, as we are aware, we all get so caught up in the day to day running that we neglect the simple things.


This week, I want to chat about your business’ breakeven point. Okay, I accept that I am an accountant and my love of figures is right up there, but 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. This may be trickier or more time-consuming than it sounds, so 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/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! Our Strategic Business Team are fantastic at helping clients to set – and smash – their targets. They’ll be happy to chat if you need help to pitch it correctly.

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.

Click here to claim your free spreadsheet