Break-Even Sales: The Number Owners Avoid
Break-even is the minimum sales you must hit to cover costs, and it removes comforting delusion.
Who This Is For
- You feel busy but not safe.
- You do not know your minimum monthly sales number.
- You make decisions without a baseline.
What To Do This Week
- List fixed monthly costs (rent, payroll, loans, overhead).
- Estimate gross margin % (rough is fine).
- Break-even sales = fixed costs ÷ gross margin %.
FAQ
What if costs change monthly?
Use a rolling average. You want direction, not perfection.
Include owner pay?
Yes, otherwise the number lies about sustainability.
Why can cash be tight above? Break-Even?
Because collections and payment timing still matter.
What should I check weekly?
Cash-in trend versus break-even target.
What tool helps?
A simple break-even calculator and weekly review habit.