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Balancing Act

Our experts solve your start-up problems.

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This story appears in the April 1998 issue of Business Start-Ups magazine.

PROBLEM: Your business plan is based on a profit of 8 percent and, after your first quarter in business, you discover you aren't even close. Worst of all, you aren't certain if you are including all the necessary variables.

SOLUTION: Perform a break-even analysis. This is a way of determining when your business has reached the break-even point. Only after you've done this can you get on the road to profitability. The formula you use depends on whether you sell a product or a service:

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