Happy Friday Blackboarders,

Very few of us started a business because we’re good at maths. So unless you’re one of the special few, you’re probably like most of the entrepreneurs I speak with. You can tell me:

  • Last month’s revenue
  • This month’s likely sales numbers
  • How much cash you have in the bank, and
  • Roughly how much money you have left over each year – aka, your net profit.

You also want the last of those (heck, all of those) to be a higher number, right?

Well, there’s a critical number you need to be able to calculate: your Break Even point. In this week’s video I walk you through how, exactly, you can determine this pivotal figure, the point at which your business shifts from loss to profit each month.

It’s not quite as simple as it sounds … but combining a couple of numbers you already have become easier when you can see the extra profit on the other side.


Originally authored by Jacob Aldridge.