Break-even point is output of the standard break-even analysis. The unit sales volumes or actual sales amounts that a company needs to equal its running expense rate and not lose or make money in a given month.

Bplans Glossary

At Bplans, it's our goal to make it easy for you to start and run your business. Our glossary of common business terms will help you learn about key small business and entrepreneurship topics.

Recent Articles Published by Bplans Glossary

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What Is Break-Even Point?

Break-even point is output of the standard break-even analysis. The unit sales volumes or actual sales amounts that a company needs to equal its running expense rate and not lose or make money in a given month. The formula for break-even point in units is: The formula for break-even point in sales amount is: =... Read more »

planning

What Is a Brand?

Your company’s brand includes your business name, logo, sign, symbol, design, or a combination of all used to differentiate your goods or services from competitors. See our complete guide to small business branding for more on how to build your brand. Read more »

planning

What Is a Broker?

A broker is an intermediary that serves as a go-between for the buyer or seller. Read more »

planning

What Is a Business Mission?

A business mission is, also called a mission statement, is a brief description of an organization’s purpose with reference to its customers, products or services, markets, philosophy, and technology. For more on your business mission, see How to Write a Mission Statement in 5 Easy Steps and Mission Statement Examples. Read more »

planning

What Is Break-Even Point?

Break-even point is output of the standard break-even analysis. The unit sales volumes or actual sales amounts that a company needs to equal its running expense rate and not lose or make money in a given month. The formula for break-even point in units is: The formula for break-even point in sales amount is: =... Read more »

planning

What Is a Back End (Website)?

Back end and front end describe website program interfaces relative to the user. The front end of your website is how it looks and how a user interacts with it: the graphic design and HTML portion—some people call this the user interface or UI. In contrast, the back end handles the dynamic parts of the... Read more »

planning

What Is Brand Equity?

Brand equity is the added value a brand name identity brings to a product or service beyond the functional benefits provided. For example, Apple benefits from the fact that its brand name is a household name in smartphones and computers. Apple built a brand that seems fundamentally different from all other computers and smartphones. See... Read more »

planning

What Is a Buy-Sell Agreement?

A buy-sell agreement is an agreement designed to address situations in which one or more of the entrepreneurs wants to sell their interest in the venture. For more on exiting your business, check out our article: Planning for the Future: Your Exit Strategy.   Read more »

planning

What Is a Business Plan?

A business plan is a strategic roadmap for any new or growing business or startup venture. Formal business plans are generally required by bank lenders, angel investors and venture capitalists if you’re seeking funding to grow your company. A Lean Business Plan is basically a shorter business plan that you can update easily and often—it’s... Read more »

planning

What Is Brand Extension Strategy?

Brand extension strategy is the practice of using a current brand name to enter a new or different product class. An example of this is the ride sharing company Uber’s foray into scooters and bike share. See our complete guide to small business branding for more on how to build your brand. Read more »

planning

What Is Break-Even Analysis?

A break-even analysis is used to assess expected profitability of a company or a single product. It helps you determine at what point revenues and expenditures are equal. Break-even is usually expressed in terms of the number of units you’ll need to sell or how much revenue you’ll need to generate. The break-even analysis uses... Read more »

planning

What Is Brand Recognition?

Brand recognition refers to customer’s ability to identify a brand based on its name, logo, colors, or a other aspects of a marketing campaign. Read more »

planning

What Is a Benchmark?

A benchmark is a standard or guideline used to compare some aspect of a business to some objective or external standard measure. For example, when a banker compares a business’ profitability to standard financial ratios for that type of business, the process is sometimes referred to as “benchmarking.” LivePlan’s Benchmarks feature can help you see... Read more »

planning

What Is Burden Rate?

Burden rate refers to personnel burden, the sum of employer costs over and above salaries (including employer taxes, benefits, and so on). Read more »

planning

What Is Bundling?

Bundling is the practice of marketing two or more product or service items in a single package with one price. For more on pricing strategy, check out 7 Strategic Ways to Price Your Products and Services and The Ultimate Guide to Choosing a Pricing Strategy for Your SaaS Startup. Read more »

Break-even point is output of the standard break-even analysis. The unit sales volumes or actual sales amounts that a company needs to equal its running expense rate and not lose or make money in a given month.