Wednesday 15 April 2009

My answer

The question was" To what extent does the experience of Nick Hess and Foodeaze show that break-even analysis is of little value to an entrepreneur starting a new business? "

So my answer is :

Break-even means no profit and no loss .So to have the break-even can help you to do the budget, you can know how many products you have to sell to cover your total cost. So good for a start business to make a business plan .And for a starting business they want to have a break-even .Because if they have a break-even at the least they are not losing.

But still break-even not always can be analysed and considered because the break-even is considered as everyting are not change it just needs to think about the cost and the revenue so sometimes it is not a real figure ,sometimes are inaccurate.

So I think for a starting business break-even is helpful but the business can't compelly believe in break-even.