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Break-even Analysis > Best Practices

Neeraj
Generally, what is the minimum time to achieve break even for a company? (...) Read more? Sign up for free

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  Rajaram Segaram
 

Time period taken for break even

The guideline for determing how long a break even period should take depends on the payback period. This the duration that a company takes to recoup its original investment. As an example if the payback period is 3 years then a firm should break even approximately by the 3rd year .

  Ludmila
 

BEP

Would it be correct if we will extent BEP for evaluation of activitiy of each separate departments (not entirely company)? Especially, for department which provides support service in order to create core competencies of the whole company?

  Valentin, Entrepreneur, Uzbekistan
 

When BEP

Well, the minimum time depends on company itself (the way the business is operated) and the market structure. The question is NOT WHEN you achieve the break even point but WHETHER you achieve or not. The second strategy should be when to achieve it.

 
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