By David Scott Peters
Find your breakeven point to avoid breaking the bank.
Do you know your breakeven point? I bet your accountant does. And you should, too. Breakeven analysis is used to determine exactly that: how much in sales the restaurant must generate to break even. Knowing your breakeven point doesn’t tell you when you’ll make money or be profitable, but it can tell you if you can afford that new marketing idea, payments on a new range, or to hire that additional server. Through examination of your fixed and variable expenses, you can see the impact of changes in these expenses.
David Scott Peters is a restaurant expert, speaker, coach and trainer for independent restaurant owners. He is the developer of SMART Systems Pro, an online restaurant management software program helping the independent restaurant owner remain competitive and profitable in an industry boxed in by the big chain restaurants. He is best known as the SMART Systems guy who can walk into any restaurant and find $10,000 in undiscovered cash before he hits the back door… Guaranteed! Learn more at www.therestaurantexpert.com/rdspos.