Getting to Break-Even is a great indication that you are on your way to being profitable. So its always good to know how long it will take get to Break-even. First, there are 2 views on Break-Even:
1. Company
The point where the company generates enough revenue to cover all expenses and net cash is $0. This is usually done in months. You need to know how long it takes your business to break even and adjust your plan if you need it to happen sooner rather than later.
2. Customers
A point when a company generates enough revenue from a customer to cover all the costs and expenses it took to acquire each customer. Every CEO needs to know if they are making a profit for each and every customer, the first time they sell them and then when the customers come back and rebuy. At Recurved, we calculate both. You will find your company Break-even point in the Cash Flow Statement, Funding Page, or Forecast > CashFlow. For customers, we always show this as profitability by unit within the Forecast section. There you can see if you are making $ on the new customers vs repeat customers. As you learn how your business will achieve its Break-even point you can start feeling confident that you will soon be making a profit!
