• Performanta si Strategie

    Why getting to break-even is so crucial?

    A company can reach performance by reaching “break-even”. As the word tells us, at this point the company “breaks” it’s current results to “even”, where revenues are equal to costs. So, why is is getting to break-even so crucial? We will point it out in the following examples. Let’s presume that you are a start-up company that organizes events, let’s say conferences & seminars. Your next conference will have fixed costs (e.g. renting the venue, speakers’ fee, hotel, plane tickets and more, team incentives, advertising) and variable unit costs (e.g. conference materials, meals, coffee breaks and so on). Your renting venue has around 150 seats, so you are interested in…

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