How to choose a marketplace to start sales
Posted: Thu Jan 23, 2025 4:03 am
Why calculate the break-even point
To put it simply, to indicate the optimal price for goods/services that you already sell or plan to offer to your customers.
You determine how much money will be spent on production, manager work, packaging, advertising, and then you form a price taking into account all expenses, taxes, and your own percentage.
But this indicator is useful not only for pricing, the entrepreneur uses it to determine:
Minimum monthly sales volume;
Business payback period;
Business profitability;
The lower limit of financial stability.
All these indicators must be taken into account both philippines telegram database when managing an existing business and when opening a new one.
Practice: How to Use the Break-Even Point in Working with Company Finances
Calculating the break-even point can be useful in different situations and business conditions. For example:
If you are just planning to start a business, then calculating the break-even point will help you correctly create a financial model and assess the prospects of the idea.
If you are already running a business, this indicator is important when assessing the current situation in the company.
Even if the business no longer exists, estimating the break-even point is useful in analyzing the mistakes made.
Drawing up a plan for the sale of goods and services.
Calculating the break-even point gives an understanding of how much you need to earn to avoid going into the red. It also allows you to adjust the plan if there have been significant changes in the company's expenses and income.
Company budgeting, or plan/actual.
The break-even point shows how well our revenue compares to our fixed and variable costs and how realistic our forecast was.
Evaluation of the company's financial security.
This indicator helps to determine quite accurately how close or far a company is from bankruptcy, using the financial safety factor.
Drawing up a financial model.
The break-even point is a mandatory indicator when assessing the profitability of a new or existing project.
When buying or selling a company.
The break-even point will not help you calculate the value of a company, but it will help you estimate its profitability and the benefits of a possible acquisition.
On the topic: Individual entrepreneurship and self-employment: how to combine and what are the advantages?
To put it simply, to indicate the optimal price for goods/services that you already sell or plan to offer to your customers.
You determine how much money will be spent on production, manager work, packaging, advertising, and then you form a price taking into account all expenses, taxes, and your own percentage.
But this indicator is useful not only for pricing, the entrepreneur uses it to determine:
Minimum monthly sales volume;
Business payback period;
Business profitability;
The lower limit of financial stability.
All these indicators must be taken into account both philippines telegram database when managing an existing business and when opening a new one.
Practice: How to Use the Break-Even Point in Working with Company Finances
Calculating the break-even point can be useful in different situations and business conditions. For example:
If you are just planning to start a business, then calculating the break-even point will help you correctly create a financial model and assess the prospects of the idea.
If you are already running a business, this indicator is important when assessing the current situation in the company.
Even if the business no longer exists, estimating the break-even point is useful in analyzing the mistakes made.
Drawing up a plan for the sale of goods and services.
Calculating the break-even point gives an understanding of how much you need to earn to avoid going into the red. It also allows you to adjust the plan if there have been significant changes in the company's expenses and income.
Company budgeting, or plan/actual.
The break-even point shows how well our revenue compares to our fixed and variable costs and how realistic our forecast was.
Evaluation of the company's financial security.
This indicator helps to determine quite accurately how close or far a company is from bankruptcy, using the financial safety factor.
Drawing up a financial model.
The break-even point is a mandatory indicator when assessing the profitability of a new or existing project.
When buying or selling a company.
The break-even point will not help you calculate the value of a company, but it will help you estimate its profitability and the benefits of a possible acquisition.
On the topic: Individual entrepreneurship and self-employment: how to combine and what are the advantages?