Income Articles

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?

If you have a business bank account, you should regularly receive a paper or electronic statement. These business bank statements provide valuable information for managing your business finances.

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 […]

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.