Wednesday, October 19, 2011

Understanding Your Breakeven Income - Your Critical Key Performance Indicator for Your Business!

Hello

Its been a while since I have posted - too many distractions!

This week, I want to discuss why knowing your breakeven revenue is so critical in ensuring that financial viability of your business.

Particularly as you start out in business - you must know this. However, once you have worked it out, you must continue to review it as it will continually change as your business develops and grows.

Rather than providing you with a written explanation, I would like to share with you a video on GTP TV presented by David Hadley. In this video, David explains how break even is calculated and why it is so important for your business.

Please click on the link below:

http://bit.ly/oXBaN5

I'd love to know whether you regularly assess your break even sales or revenue for your business. Feel free to comment

Cheers

Chris

2 comments:

Lindy Asimus said...

Needs to be said. Loud and often. Thanks. More businesses should be taking account of these fundamental metrics.

Chris Foster said...

Thanks Lindy - so true. Many business owners really don't seek to understand their critical KPIs until its too late. My goal in life is to educate business owners these important things!