break-even

Vocabulary Word

Definition

In business, 'break-even' is when a company's income equals its expenses. It's not making a profit, but it's also not losing money. It's balancing on the break-even point.

Examples in Different Contexts

In business planning, 'break-even analysis' is used to determine when a business will be able to cover all its expenses from its revenues. A business planner might outline, 'Our break-even analysis shows that we need to sell 5,000 units to cover our initial investment.'

Practice Scenarios

Business

Scenario:

Our new product has been received well by the market, but the manufacturing costs are high. We need to renegotiate with suppliers to improve our margin.

Response:

Agreed, we could consider outsourcing parts of the production to lower costs and reach break-even faster.

Marketing

Scenario:

The campaign's performing above expectations, but the ad spend is still fairly high. We need innovative ways to cut costs.

Response:

Yes, perhaps influencer marketing could be a cost-effective way to reach more people and help us break-even.