Every business owner should read this!

Planning for Your Business and Your Wealth

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…

View original post 562 more words

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s