Break even point of a business

According to the respondent

The company didn't break even for three months. The stage at which a company organization experiences neither losses nor profits is known as the break-even point. The income is equal to the outlay (Burns, 2010). The business effort didn't start making money until three months had passed. The interviewee initially came up with the concept before beginning the business. Idea development entails the establishment of a virtual business that didn't previously exist. The second step involved completing an industry analysis, identifying the market gap, and evaluating oneself. A business venture's potential position in the market should always be considered (Burns, 2010). Following the market analysis, the interviewee legalized the business through registration and immediately began the planning process. At this time, he sought to finance and then, later on, set up the shop.

The biggest challenge faced so far

is striking a balance between growth and quality delivery. There comes a time when problems from growth seem to level or outweigh the benefits. It has been difficult to sacrifice for the small business to scale. The level of personal involvement with the business and the attention to detail determine the potential success of the firm. At some point, business owners are tied to personal habits that work against the growth of the firm (Hatten, 2015).

According to the shop owner

the advantages of running a small business and almost unlimited. There is the personal control of all the affairs of the firm, and hence key decisions are made from the top. It is through small businesses that entrepreneurs get to help people and do whatever one loves. When a person operates a small business, he/she has the option of leading a more flexible life and have the potential of making much money in the future (Small Business for the 21st Century, 2014). The shop owner said that the advice to small business owners is that they should always strive to achieve customer satisfaction so that they can realize success and growth in the long run.

References

Burns, P. (2010). Entrepreneurship and Small Business: Start-up. Growth and Maturity. Palgrave Macmillan.

Hatten, T. S. (2015). Small business management: Entrepreneurship and beyond. Nelson Education.

Small Business for the 21st Century (2014). Washington, D.C.: The Saylor Foundation