Break even sales is the point at which we’ve sold just enough to pay all of our expenses, with nothing left over for profit. In other words, it’s the point at which profit and loss equal exactly zero. It turns out that breakeven is among the most powerful tools we have for making management decisions.

I understand that a lot of us don’t like numbers, but these are just too important to ignore. If you plan on succeeding in business, suck it up. Sacrifice the few minutes it takes to understand.

 

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