Hello,
I'm following along with this example of a business plan:
http://ift.tt/2zQsRBS
I linked to page 8 where it shows, among other things, a "break even analysis".
My question is: what does this graph show other than that the company needs $21,000 to break even? And break even for what? The initial cost of setting up the business? Something just seems off about it, like it's unnecessary. It doesn't show anything useful.
It's like if I went into debt by $100. All I have to say is that I need $100 to break even. Why do I need a graph to show that...
If I pay back $10, then I'll only be $90 in debt.
If I pay back $20, then I'll only be $80 in debt.
If I pay back $30, then I'll only be $70 in debt.
...
And finally if I play back $100, THEN I'll be out of debt.
We can do math. We know how much debt is left after paying back so much.
I'm following along with this example of a business plan:
http://ift.tt/2zQsRBS
I linked to page 8 where it shows, among other things, a "break even analysis".
My question is: what does this graph show other than that the company needs $21,000 to break even? And break even for what? The initial cost of setting up the business? Something just seems off about it, like it's unnecessary. It doesn't show anything useful.
It's like if I went into debt by $100. All I have to say is that I need $100 to break even. Why do I need a graph to show that...
If I pay back $10, then I'll only be $90 in debt.
If I pay back $20, then I'll only be $80 in debt.
If I pay back $30, then I'll only be $70 in debt.
...
And finally if I play back $100, THEN I'll be out of debt.
We can do math. We know how much debt is left after paying back so much.
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