If your brewery is currently losing money, a first step towards profitability is to find your break-even point.
The break-even point is the stage where your brewery stops losing money and is poised to start showing a profit.
It’s like the profit tipping point.
There are many complicated ways to calculate break-even. These include identifying your fixed and variable costs, understanding your gross margins, and running some calculations.
We’ll cover complicated in a later post.
For now, let’s review a super simple way to calculate break-even.
Do this next:
- Watch the Brewery Break-Even Explainer video below
- Download the Income Statement with Business Segments and Break Even Template
- Plug in your own numbers and see how they look
- Learn about the Beer Business Finance Association, and our brewery financial round table meetings where we talk break-even analysis all the time
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