Every business owner should read this!
Great ideas are fun to imagine, design and develop. But in business, no idea is worthwhile if it can’t make money. How do you know if your idea could make money?
Honestly, you don’t. But don’t be discouraged! If you research carefully, you can get a pretty good sense of whether people would be willing to pay for your idea. My banker friends Jeff Arminger of BB&T and Steve Wientge of The Columbia Bank call this break-even analysis.
What is Break-Even Analysis?
A break-even analysis determines the amount of income your business requires to offset its expenses. It’s a pretty simple concept and there are plenty of resources that can help with the calculation. This is Business 101: You need take in more than you spend. Once you’ve done that, you can determine whether the amount above the break-even line (your profit) is significant enough to justify the…
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