[xrac]

The 1% Solution: Knowing Your Break-Even Point

http://www.tirerevie...even_point.aspx

[Joe Marconi]

xrac, on 28 April 2010 - 11:37 AM, said:

The 1% Solution: Knowing Your Break-Even Point

http://www.tirerevie...even_point.aspx

Great article, all should read and keep as a reference.

I have become religious about calculating, measuring and monitoring break-even among other key numbers. But I don’t settle for break-even and think this is an issue with a lot of shop owners and business people in general. Many shop owners I speak with know their breakeven, but fall short with respect with income. Why? Just paying your bills and covering your expenses can never be your goal.

After we calculated our break even we need to add to that number what we want to see as our return on investment. We need to set our goals and work toward them.

Break-even must be viewed as our starting point. Once achieved, we need to push that number up.