In plain English
Divide fixed monthly costs by your gross margin percentage to get the revenue you need each month.
Every fixed cost you add, rent, a hire, a truck payment, raises that number before it earns anything.
Example
$12,000 of fixed costs at 40% gross margin needs $30,000 of monthly revenue to break even.
Why it matters
It tells you whether a bigger building or another hire is affordable before you sign.
COMMON MISTAKELeaving your own pay out of fixed costs.
Related
YOU'RE APPROACHING THE EDGE OF THE PUBLIC BLUEPRINT.