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What’s your breakeven point?
The latest business guidance from our Managing Partner and Founder, Mark Norden…
Over the coming weeks, we’ll be discussing areas of your business that you can look at in order to recession-proof it.
The reality is that the strategies we’ll show you are things that we should all be doing on an ongoing basis to ensure our businesses are profitable; but, as we are aware, we all get so caught up in the day to day running that we neglect the simple things.
Breakeven
This week, I want to chat about your business’ breakeven point. Okay, I accept that I am an accountant and my love of figures is right up there, but understanding what level of turnover your company needs to achieve to break even is of the highest importance.
Laying down figures
On a simple level, list out all of your business’ monthly costs and then determine what you need to sell in order to break even. This may be trickier or more time-consuming than it sounds, so we have set up a really useful pro-forma spreadsheet that you can use for exactly this purpose.
Setting targets
Setting targets is really important! Make sure you set and monitor your sales and costs over the course of the whole month, so that you show a profit after your salary/dividends/drawings. And remember that, if you only aim to break even, you will probably lose money, so be careful what you set yourself as a target. Be realistic, but challenge yourself! Our Strategic Business Team are fantastic at helping clients to set – and smash – their targets. They’ll be happy to chat if you need help to pitch it correctly.
This is a simple strategy that you can implement yourself, but of course we are here to help and make the process quicker and less painful.
Beyond Accountancy
At Nordens, we're more than just accountants - we're business experts who can help you achieve your biggest goals.
Our specialist strategic division at Nordens boasts some of the leading entrepreneurial business minds in the country. We cater towards delivering consistent success stories, whilst helping businesses achieve above and beyond their initial goals.
Through highly-tailored guidance, coaching and advice, Nordens Strategic are able to define exactly how your business can reach new levels of success.
Regardless of how you define ‘success’ for your business, our strategic service is guaranteed to bring about real and lasting change. By partnering with some of the UK’s top business coaches, we’ll steer you along the path to a greater future.
Every business, no matter how big or small, needs to make the right decisions, and how to best manage your accounts can put huge question marks over your business. Accounting2You is here to take that pressure off and provide you with all the answers you need.
Our bookkeeping branch offers a fully inclusive, comprehensive service that you can trust. Since 2005, our specialist bookkeepers have been successfully managing the accounting of both individuals and small businesses.
With experts in payroll analysis, credit control and financial recording, Accounting2You will lead your business efficiently, and with real purpose, towards a prosperous future.
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Chris Dyer
Director - Metro Bank
Nordens are always very easy to deal with and extremely professional and efficient. I would have no hesitation in recommending them to my clients for their accountancy needs, no matter how complex they may be.
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