You need to love and be in love with your business for it to thrive, and survive into the future.
I'm sure when you started out, you were super excited, passionate about it, loved what you were doing. That's why you started, right?
After you've been in business for a little while are you still jumping out of bed with the same enthusiasm?
Probably not as after a little while reality kicks in.
The reality of having enough money to pay the bills. The reality of the hours you need to put in to make it work.
In order for a business to succeed you have to love your business, and you need to learn to love your numbers too. Because the numbers are everywhere.
Break-even is the minimum amount of income you need to cover all your costs. It’s the bare minimum number you need to keep your head above water each month.
Oddly enough, we’ll start with your non-business expenses. Your personal expenses. While break even is all about the business, we need to understand what you need to be drawing out of the business to look after yourself. Think of this as your personal break even!
1. Start by writing a list of your personal expenses
These are your portion of the household expenses to keep the house running smoothly. We’re talking mortgage, rent, electricity, telephone, clothing, entertainment, schooling, food.
If you're already drawing a certain amount out of your business - as a salary or drawings – this is a good...