A Break-Even Analysis is an indispensable tool for businesses of every shape and size, and reaping its benefits only requires inputting a few simple figures, pulled from your outgoings and income, to help you better understand where your business is and what you need to do to take it forward. I know going over the numbers may not be the most exhilarating part of running your business, but it’s imperative that you know what it takes to keep everything running and what your levels of profitability are if you want to be able to cover your costs and pay yourself.
In episode 31 of The Resilient Retail Game Plan, I break down Break-Even Analysis. We'll cover the simple and effective equations required to help you get a handle on your profits margins as well as identifying the vital difference between product costs and overheads, and how growing your average profitability doesn't always have to mean generating more orders. By the end of this episode, you should have a better idea of what's coming in and going out of your business and will be able to use that all-important information to set yourself the sort of targets that will help you and your business thrive.
