Introduction to entrepreneurship/IENT103/Valuing/Break-even

Generally speaking, the value of a business is based on its future profit potential.

The pre-seed funding stage commences with your idea for a new business, and with initial funding for the entrepreneur to progress a working prototype or minimum viable product. The objective of this phase is to achieve the break-even point, that is, the point where a business starts to make a profit. It is important, then, for you to
 * know how to calculate the break-even point, and
 * consider how long it might take to achieve this milestone for your planning.