http://blog.owengreaves.com/your-break-even-point Looking into the future of Technology & Media Fri, 12 Mar 2010 13:11:13 -0800 http://wordpress.org/?v=2.9.2 hourly 1 http://blog.owengreaves.com/your-break-even-point/comment-page-1#comment-626 Dude Fri, 07 Aug 2009 23:20:11 +0000 http://blog.owengreaves.com/?p=697#comment-626 As I mentioned, it amazes me how many ignore the truth about the business they are either running or own. The Break Even is not a guarantee, it is merely a snap shot of how you can lose everything if you don't pay attention. As I mentioned, it amazes me how many ignore the truth about the business they are either running or own. The Break Even is not a guarantee, it is merely a snap shot of how you can lose everything if you don’t pay attention.

]]> http://blog.owengreaves.com/your-break-even-point/comment-page-1#comment-625 Martin Schultz Fri, 07 Aug 2009 23:16:15 +0000 http://blog.owengreaves.com/?p=697#comment-625 An anecdote on break even. Years ago I consulted with a successful international company on a new business venture they were launching. The capital equipment worth tens of millions was being built. They were committed. Because the related information was not centralized, it took me a couple of days to do a simple break even analysis. It showed that the venture needed to operate at close to 90% capacity to break even. And that was theoretical capacity not practical capacity. There was no room to increase price, in fact increasing competition was going to cause price erosion. These were smart people that ignored something they all knew how to do. They spent the next several years digging themselves out of that hole. This is one of the most useful tools available. Use it. An anecdote on break even. Years ago I consulted with a successful international company on a new business venture they were launching. The capital equipment worth tens of millions was being built. They were committed. Because the related information was not centralized, it took me a couple of days to do a simple break even analysis. It showed that the venture needed to operate at close to 90% capacity to break even. And that was theoretical capacity not practical capacity. There was no room to increase price, in fact increasing competition was going to cause price erosion. These were smart people that ignored something they all knew how to do. They spent the next several years digging themselves out of that hole. This is one of the most useful tools available. Use it.

]]> http://blog.owengreaves.com/your-break-even-point/comment-page-1#comment-611 olivier blanchard Tue, 04 Aug 2009 18:48:11 +0000 http://blog.owengreaves.com/?p=697#comment-611 Great stuff, Owen. You wouldn't believe how many business managers either don't know this, have forgotten it, or never use it. Thanks for giving it life again. Great stuff, Owen. You wouldn’t believe how many business managers either don’t know this, have forgotten it, or never use it. Thanks for giving it life again.

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