How to INCREASE my company's PROFIT - Break-Even Point - Learn with Sebrae

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Sebrae Talks

Published on Oct 31, 2019
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???? Do you want to delve deeper into content about your company's financial control? Click here to access: ↪️ http://bit.ly/controle_financeiro_sebrae ???????????? ⭐⭐⭐⭐⭐ Imagine having an indicator capable of directing you to the sales volume needed to cover your business's cost structure? Better yet: an indicator capable of covering the cost structure and directing you to the sales volume needed to generate the desired net margin? To teach you about the financial break-even point, the economic break-even point, how to calculate these indicators and how to make decisions based on these indicators, we invited consultant and finance specialist Mayara Ledo. To learn more about the professional, visit her Instagram profile: @mettasolucoes Defining sales goals, restructuring the product and service mix, improving the cost structure, financial balance: these are just some of the results you can achieve with the knowledge and use of the BREAK-EVEN POINT indicator. But what is this indicator? The break-even point is the point of financial equality between all of your company's revenues and expenses in the same period of time. With it, you can identify exactly what the minimum monthly revenue your business needs to have to ensure that both fixed and variable expenses are covered. In short: the moment when you, the entrepreneur, will be able to pay all of your bills and, with that, reach the much-dreamed-of point of starting to make a profit. Translated from the English term break-even point, the Break-Even Point allows the entrepreneur to assess the viability of their projects and investments, identifying precisely the moment when they will have profits or losses (with results above or below the calculated point). Before making the calculations to know how much the company needs to earn to reach the Break-Even Point, it is necessary to identify some data: Product cost: how much is paid to the supplier or how much the entrepreneur pays for raw materials, production, etc. Fixed costs: costs that the entrepreneur has regardless of revenue (employees, structure, accountant, etc.). Variable costs: costs that vary according to each sale, i.e.: payment method fees, taxes, marketing campaigns, etc. Average sales price of each product. From there, the Break-Even Point can be analyzed in one of its three main variations: the Accounting Break-Even Point, the Financial Break-Even Point and the Economic Break-Even Point. And how to calculate the BREAK-EVEN POINT? Let's calculate it together! Accounting = total value of fixed costs and expenses ÷ contribution margin index Financial = fixed costs and expenses – (non-disbursable expenses ÷ contribution margin) Economic = total value of fixed costs and expenses + (opportunity cost ÷ contribution margin) Balancing expenses and revenues, using knowledge for constant improvement, is essential for the company's survival. Therefore, the Break-Even Point, more than a diagnosis of the financial health of your business, is a guide for sales goals, for expanding or reducing production capacity, among other items. Want to know more about the subject? There is a link available for download right here at the beginning of the description of this video! Check it out and then come back here to tell me how you applied this content in your company! And also tell me: do you have any questions? Do you understand how it is possible to improve your company's results through the tips? Also tell me if you already knew about this indicator, do you already know how to use it and how you will apply these tips to improve your results? Do you already know where to start? Do you have anything else you want to talk about? Interact with us here in the comments! You can be sure that we will answer you! Much success and always count on Sebrae! #financialmanagement #entrepreneurship #sebrae

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