Break-even Point (Entrepreneurial Finances) - Definition, Examples, Advice | Bolder Money

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Definition

Figuring out the sales level where income matches expenses. Knowing this helps set realistic targets and make pricing decisions.

What to consider

Benchmark against industry averages.
Focus on boosting employee efficiency.
Use the metric to inform staffing decisions.

Real world scenarios

A small firm calculates revenue per employee to gauge staff productivity.
A tech startup monitors this metric to evaluate hiring needs.
A retail store reviews revenue per employee to decide on incentive programs.

Related terms

Entrepreneurial Finances

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