![]() Its objective is to run business without using investment capital anymore. Remember that break even is not similar with return on investment calculation. You can add variable cost, for example for salon business, and put its cost as monthly average. You need to sell with that expenses as your minimum sales target. And basically, that expenses is your target to break even. To run break even analysis, you just need to create expenses projection. Rental services : car rental, party equipment, kitchen equipment, costume (car and equipment are considered as assets which can be excluded from break even analysis).Event organizer : wedding organizer, party planner.Salon business : hair salon, manicure and pedicure, barbershop, beauty salon (there are shampoo, water, vitamin, hair color that you can put them into variable cost).Artists : web design, photography, graphic design. ![]() Consultation services : architects, law firm, notary, education consulting.Several samples of business models that fall into this category are : ![]() There are plenty of business models in service industry. Because, no significant direct or variable cost need to be included in the calculation as you can see in this break even analysis template below. In service industry, calculating break even is more simple than merchandising or manufacturing industry. Break even analysis should be important for business owners to evaluate their business before deciding to start it.
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