Making money and sales in your newly started business can sound like you made it… but did you? It’s not all about how much money you are seeing coming into the business, but how much is coming in that is allowing you to cover your fixed costs.
In business you want to at least break even, you may not be making a profit when you break even, but at least you are not losing money, which means success!
If you don’t know what breaking even means, it is essentially the point where you are neither at a loss or a profit, but you are making enough to cover your business cost.
For example, let’s say you are a bikini brand and you want to find out how many bikinis you need to sell in order cover all your costs or at least recover your investment, what you would essentially need to do is divide your fixed costs or your investment by the selling price of your bikini. This will give you the unit of bikinis you need to sell to break even, anything above that would be considered a profit!
So, make sure you are covering all your costs first and once you do, everything after that will be a true profit!
If you missed my last blog post, check it out here