What Is Break-Even? I Explained It to My 12-Year-Old Cousin
My cousin asked "What is your business?" I said "If I don't sell 20 logos a month, I can't pay my internet". He said "So that's your break-even?" Exactly. Break-even is the point where you are not rich, not poor, just surviving.
Break-Even in Plain English
It's not a fancy finance term. It's simple: Sales = Costs. Below it, you lose. Above it, you profit. At it, you survive. Every Lemonade stand, every freelancer, every big company has it.
Why You Must Know It + Free Tool to Find It
If you work from home with $500 monthly costs and you charge $25/hour, your break-even is 20 hours. You MUST work 20 hours to survive. Knowing this stops anxiety. You know your minimum.
My tip: Search "free break-even point calculator" on invoiceluxe. It's a free tool, no login. Enter your costs, it shows your break-even in seconds. I check mine every month from my phone. It's the most important free tool for any beginner.
0 Comments