When you start your own business the goal is to make money. To know just how much money you need to make to make a profit, you must first know what your break-even point is. So, how do you calculate that break-even point for your business? To do so, you will need to know the operating costs of your business. Searching for laundry equipment distributors in Charlotte, NC? Call T & L for big savings.
All of the fixed costs and variable costs of your business should be able to be covered by the sales revenue of your business. When this occurs, your business has reached its operating break-even point. While having the income match your business expenses is a relief, it does not produce any sort of profit for you.
What is a fixed cost?
Fixed costs are the costs in your business that do not change from month to month. These costs remain the same regardless of how many customers come through the door of your laundromat. Expenses that do not typically vary from month to month include equipment payments, rent, insurance, interest, and services for your business like internet and phone. Once you know the costs of each of these expenses per month, you will have a good idea of how much your business spends on fixed costs each month.
What is a variable cost?
Variable costs are those expenses that can fluctuate from month to month. The most common expense that comes to mind as an example of a variable expense is your monthly utility bill. Labor to staff your laundromat and repair costs are additional examples of variable expenses that your laundromat may experience each month.
Determining both of these costs will help you determine the monthly break-even point for your business. To know how much profit you have made in a single month or in an entire year you will need to subtract the costs of your business from the total gross income. The resulting number is the amount of profit that your business made.
Top-Rated Laundry Equipment Distributors in Charlotte, NC
For more than 40 years, T & L Laundry Equipment has been providing laundromat and commercial laundry owners with the products, services, and information they need to stay ahead of the competition and run a profitable laundry business. Whether you are beginning the process of owning your first laundromat or are expanding your franchise, let the experienced professionals at T & L help you make it happen.
We offer more than just the latest in commercial laundry equipment from Continental and Speed Queen. Our knowledgeable team performs complimentary site visits to help you design your laundry with ease of use and maximum profits in mind. T & L doesn't want to be just another vendor for your business. We want to be a partner in your success.
Find out more about what sets us apart from other laundry equipment distributors in Charlotte, NC by coming by our showroom to visit with our staff and learn more about what Speed Queen and Continental machines can do for your business. Call to set up your appointment with one of our expert team members today!
Don't let your business just break-even every month, turn a serious profit with equipment, service, and expertise from T & L Laundry Equipment.