At Harlands we love a good story about how businesses got started. One of the main ones we hear is that the company was born from a hobby or passion. This makes sense, it’s something you enjoy and you would love to make a living from it. The problem comes when you realise that you need to understand your finances and how much you actually need to make. The first step of this is calculating your break even point.
Our Commercial Director Phil Murray has put together this guide in response to all the questions we have received around the topic of calculating your break even point and understanding your cost of doing business.
Being in control of your finances is so important for any business, download our guide today and start calculating your finances.
Your break even point is understanding how much you need to make in order to cover all your costs and “break even”. This is important because you need to know this point before you can start to look at profit. Our guide will cover costs that you maybe haven’t even thought of but definitely need to consider. Knowing your costs not only helps with knowing when you will start to make profit but it can also help with pricing. Knowing how much you need to make can help you understand how much you need to charge.
Each business will be different and will have different costs but our guide should get you thinking about your own situation and some of the costs involved for any business, both start up and established.
What if I can’t get my finances to add up? It’s not always as simple as just working out your finances and sometimes you may need financing or funding to help start the business. Read our guide on funding for start ups if you think that might be you.