Do you know what you need to make each month, week or even daily to cover the costs of running your business? In other words do you know what your BREAKEVEN point is.

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Your BREAKEVEN POINT is when your REVENUE = EXPENSES.

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When you are at break even you are invoicing JUST enough to cover but NOT making ANY PROFIT! It's the absolute MINIMUM that you want to be invoicing out to ensure you are covering your costs. It is a great indicator of how your business is operating & where you need to make changes to improve.

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How to work out your breakeven:

1. Gather your expenses from your P&L - with the COGS & subcontractors it is best to work off a percentage to get your breakeven & a yearly average for operating expenses.

2. Work out the total expenses over a set period of time (month, quarter depending on your industry)

3. The TOTAL EXPENSES = REVENUE or the absolute minimum you should be invoicing out.

4. You can then work this out on a monthly, weekly or daily target. You or your tradie can then use it to schedule jobs & staff to ensure you are covering costs & not going backwards.

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