CHAPTER 4
The Breakeven Point
When Your Business Is Truly Self-Sustaining
If someone were to ask you, “How do you know if this business is profitable?” you would now be able to confidently go to the bottom line of the company’s Net Income Statement to see whether it was positive or negative for the period under review. When that line is positive, it means net income is positive and the business is profitable. When that line is negative, it means the business is showing a loss. After three chapters, you are also familiar with all the variables that drive profits as well as with some sophisticated techniques of improving them to build and protect a positive net income. What may have seemed intimidating when you first picked up this book is now ...
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