Help! My business isn’t breathing!

by Matthew Person on November 8, 2011

Sales are the oxygen companies need to survive.  How are your sales?

  • What quantity of product or service needs to be sold monthly to remain viable?
  • Have you budgeted for different sales results?
  • Do you know your breakeven sales amount?

At Person Huff CPA, we believe business vitality can be measured by examining 5 areas of business. We call the analysis process the Person Huff Profitability Check-Up

  1. Breakeven Sales Analysis
  2. Taxable Income Analysis
  3. Balance Sheet Strength Analysis
  4. Gross Profit Margin Analysis
  5. Overhead Expense Analysis

Now, not all 5 areas have the same importance to all businesses at all times during their lifecycle. In other words, a company that just launched will be focused on Breakeven Analysis or Overhead Expense Analysis. Mature companies will have established an understanding of these numbers over the years.

When I was in the Marine Corp, we learned that the first step in life saving process is Start the Breathing. The same principle applies in business.

Start the breathing=Breakeven Sales Analysis

If your company can’t achieve enough sales to break even, no more analysis is needed. The company isn’t viable. Sales are the oxygen companies need to survive. Knowing the breakeven point of your business is essential to its survival.

Do you know yours? If you don’t, contact Person Huff CPA Group today to schedule your 5-point Profitability Check Up.

David W Huff, CPA, PFS, MS is a partner at Person Huff CPA Group. He provides clients with tax preparation and consulting services, accounting services, retirement plan and benefit consulting, accounting software technical support and training, and management advisory services. His specialty is helping new businesses organize their operations to maximize tax savings and move quickly from start-up to profitability.  You can reach David by email at: