Definition: The break even point is the volume of sales required so that the expenses of the business are equal to the income received. There is neither a profit nor a loss.
Why the Break Even Point is Important
The idea of owning a home business is not to lose money but to make a profit. You do not make a profit until your sales volume exceeds your break even point.
Determining your break even point gets easier as you get more familiar with your business and your cost estimates get more accurate.
Pronunciation: brake ee ven poynt
Also Known As: break even
Alternate Spellings: breakeven, break-even
Common Misspellings: none
Examples:
I need to bill 200 hours of my time to clients in order to reach my break even point, where I start making a profit.
