This Business Coaching Topic is

“Breaking Even”

When a Business Owner says:

“I’m spinning my wheels and feel like I just can’t get anywhere / get traction” …

There is a good chance the reason is this …

Expenses have an incredible propensity for meeting revenues … It’s up there with the other 7 wonders of the world like the Taj Mahal and The Great Wall of China, The Colosseum etc. …

The solution lies in reasonable financial education, and their mindset or psychology once educated … Once they get to their break-even point, they start to “roll downhill” because their profit increases dramatically …

Your business isn’t stuck — It’s trapped at Break-Even, where Expenses chase Revenue … Break through this point and profits finally explode …

Let me explain … 

Simple Definition of Gross Profit =
Revenues   MINUS   Cost of Goods Sold (COGS)

If a child had a ‘Hot Chocolate Stand’ the COGS would be cocoa, marshmallows and water … 

Simple Definition of Net Profit =
Revenues   MINUS   COGS AND Expenses

The Hot Chocolate stand expenses would include rent, paying for the Urn to boil the water, salaries to pay the kids buddies. These are examples of expenses outside COGS …  

Let’s assume Gross Profit (revenues minus COGS) is 50% and Net Profit (Revenues minus COGS and Expenses) is 20%.

Breakeven is a simple calculation
overhead divided by the gross profit % …

__________

A simple example:

Total Revenue = $1,000,000
(the kid operates one KICK BUTT Hot Chocolate Stand)

Gross Profit = 50% = $500,000

Net Profit = 20% = $200,000
__________

Overhead therefore, must be $300,000

300,000 / 50% (0.5) = $600,000 (breakeven)

Here’s the MAGIC of the above and what I want you to REALLY DIGEST and how it helps me solve your problems of:

“I feel like I’m spinning my wheels and just feel like I can’t get anywhere.”

Once you get past “breakeven” …
ALL future profits are based on Gross Profit, NOT Net Profit …

As in 50% rather than 20% …

Put in another way … Your profit increases dramatically post breakeven ($600,000) and you finally start to realize financial returns …  But most never get past “breakeven” because their expenses keep creeping up to revenues for no other reason than they’re not watching / paying attention / care / experienced etc. …

IT’S NUTS WHEN YOU REALLY UNDERSTAND THIS

Once you start operating post break even and achieve gross profit margins (50%) most start saying “when it rains it pours” … as in, they start making some money and real ROI … What is really happening is they’ve surpassed breakeven and are experiencing gross profit margins (50% in my example here), which is a LOT more fun than net profit (20%) …

The above is all mindset and psychology
The closer you get to the finish line
the faster you go

When you realize you are at breakeven, and that every dollar above and beyond this point (provided you don’t jack up expenses) is a 50% profit VS 20% …

You’ll go that much faster / try that much harder …

I’ve seen it MANY times …

If you can understand the above examples and realities of your financials …
you’ll have significant long term financial wins …

One BIG translation to all of this …
I help clients CONTROL EXPENSES …

That’s why it’s the first core strategy of my Business Coaching layout …

SUMMARY

Most Small Business Owners feel like they’re “spinning their wheels” because they unknowingly operate at or below their Break-Even Point — where rising expenses constantly chase their revenues … This article shows why that happens, how simple financial understanding shifts your entire mindset, and why everything changes the moment you cross that Break-Even threshold. Once you get above it, profits accelerate dramatically because returns are measured at Gross Profit, not Net Profit … This creates the psychological momentum that makes growth feel faster, easier, and finally rewarding … When Business Owners grasp this truth — and learn how to control expenses strategically — they unlock long-term financial wins and finally get the traction they’ve been chasing …

When you truly understand Break-Even — and start operating above it instead of constantly chasing it — everything changes. That’s where real financial gains, real momentum, and real ROI finally appear. Most Business Owners don’t realize how much money they’re leaving on the table simply because expenses keep creeping up and suffocating their profit potential. If you want to stop spinning your wheels and start experiencing the dramatic financial acceleration that happens after Break-Even, let’s talk. The numbers don’t lie — and neither will the success you unlock once you see where your hidden profit is waiting.

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