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Move Into the Profit Zone

Good news: You've reached the breakeven point! That means you can start making some serious cash.

This story appears in the June 2002 issue of Teen Startups.

( - Here's something that may seem a bit hard to fathom: as a new 'trep, you're actually going to celebrate when your business reaches the zero profit mark. Sound crazy? It does until you realize that that is the point when your business makes the transition from operating at a loss (the place where most businesses begin) to the place called the breakeven point--and on to the profit zone.

Of course, the breakeven point--the point when your sales exactly cover your monthly expenses--is different for every business. The only way to know your own is to do a breakeven analysis. Don't worry; it's a simple calculation. Just follow these steps:

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