Concept Define, as specifically as possible, exactly what your business will do. Industry research will give you a better idea of your margins. In business, some costs are fixed and some are variable. That is, rent for a storefront is fixed, regardless of the amount you sell from month to month.
Higher volume can mean lower costs.
Calculate your cost to rent space, buy machinery, pay interest on any loans, staff your business and any other fixed costs. Divide that by the 'contribution to fixed costs' to determine how much you have to sell to break even. Sales beyond this point finally put some money in your pocket. The program does not include medicine, food, toys, or games.