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How many products do you need to sell?

Goldendale Business

 


This is a common question I find myself asking both existing businesses and those looking to start a new business. For example, let’s consider starting a new business selling milkshakes. To keep things simple, we will consider that the business will have monthly fixed expenses of $2,000 for things such as rent, utilities, advertising, a very part-time employee, and a few other costs. We can’t forget about ourselves, so let’s add $1,500 to this total to cover our own needs. So far in this example, our milkshake sales will need to generate enough gross profit to pay $3,500 in expenses just to break-even. We will say that on average we will sell a milkshake for $3 and that each milksh...



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