A breakeven analysis template is an excellent tool to help small businesses succeed. This template helps business owners calculate how much of a product they would have to sell before beginning to show a profit. The breakeven analysis template is available for free, and is easily customizable. This easy-to-use template can be downloaded here on this page.
Using the Breakeven Analysis Template
A Breakeven Analysis template is a great workbook for small business owners to use. This easy-to-use tool will help keep track of the number of products a business needs to sell, before a profit is shown. The template factors in all of the production costs before any profit can be made. In this way, a business owner always knows exactly where the business stands as far as the profit margin is concerned.
Since the Breakeven Analysis templates are customizable, they can be formatted to fit each individual business. To set up a Breakeven Analysis template, business owners need to be able to list four factors.
- Find the price per unit. This means the selling price of each individual product.
- Find the cost per unit. This will be what the total cost of the manufacturing process.
- What is the fixed cost. This amount will not change regardless of the number of products manufactured.
- Variable costs. Unlike fixed costs, this amount changes in accordance with the number of products being manufactured.
Once these numbers have been determined, the Breakeven Analysis will be able to set a numbered goal for the company to reach, so the business can begin making a profit. For businesses who are launching a new product, the template can help show them how to price their new product for maximum profit.
For many small or new businesses, it can be difficult to determine profit margins, sales margins, and production costs. With the Breakeven Analysis template, all of these costs can be easily figured out. The template is customizable to fit any business, and is extremely easy to use. To help any business succeed download the free template available on this page, and simplify the economics of running a business.
Download: Breakeven Analysis Template