Expenses Articles

If you’re asking, “When will my business make a profit?”, you’re not alone. Profitability is more than a milestone. It’s the point where your business can pay its own bills, give you  reliable earnings, and grow without constant stress. 

Key Takeaways − Cash burn rate: How fast you’re spending cash each month. Cash runway: How many months you can operate before running out of cash. Gross profit and gross margin: Profit after direct costs of goods/services. Operating expenses: What you spend to run your business. Break-even point: How much revenue you need to cover […]

Key Takeaways − A break-even analysis shows when your startup’s sales will cover all your costs. The formula for your break-even point is: Break-even Units = Fixed Costs / (Price per Unit − Variable Cost per Unit) Performing a break-even analysis helps you set smarter prices, decide if an idea is viable, and plan sales […]

Do you want your business to make a profit? Duh, of course you do! But when you’re starting out, it may take a few years before you enter profit territory. And after you start making a profit, you may be at the break-even point for a while. So, what is the break-even point?

Turning a new venture into a profitable business is part math, part discipline. How long it takes to reach the break-even point varies, but many small businesses reach it within six – 18 months. 

You might extend credit to customers so they don’t pay right when they receive a good or service. When you invoice a customer, you include payment policy terms that detail when the money is due. You might bill in arrears, or the customer may pay in arrears. What does it mean when something is paid […]