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

For startups, reaching 'break-even' is a critical milestone that indicates financial sustainability. A startup CEO might discuss, 'Achieving break-even within our first year is crucial for attracting further investment and ensuring the company's longevity.'

Practice Scenarios

Academics

Scenario:

Our research project has potential, but it requires substantial funding. We need to identify more financial resources.

Response:

I'll look into additional grants available. The sooner we secure more funding, the sooner we can reach our break-even point.

Tech

Scenario:

Our app downloads are increasing, but we need a stronger revenue model to make the operations sustainable.

Response:

That's right. We could introduce premium features to boost our revenue and achieve break-even sooner.