Break-even is the floor. Below it, you're losing money. Above it, you're making money. Knowing your break-even number is one of the most practical things a business owner can do.
A simple example
If your fixed monthly costs total $18,000, and your gross profit margin is 60%, your monthly break-even revenue is $30,000. That's what you need to bring in every month before you make a dollar of profit.
Daily break-even target
Greg Crabtree's Simple Numbers framework converts the monthly break-even into a daily target. Divide your monthly break-even by your working days. If break-even is $30,000 and you have 21 working days, your daily revenue target is about $1,430. Now you have something you can actually manage.
Why this matters more than profit margin alone
Profit margin tells you how you're doing. Break-even tells you what you need. Knowing both numbers together gives you the full picture.
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