Why is the break-even point important? One of the biggest reasons why SME restaurant operators fail or fail is due to cost issues. And one of the cost issues that affects the financial status of the business is not knowing. “The break-even point of your own business” When you don’t know the break-even point, setting sales targets is likely to be wrong. The same goes for planning cost management and sales. Therefore, the “break-even point” is important and entrepreneurs need to know it. The meaning of the break-even point in simple terms is selling without loss, not having to spend money, but not making a profit! Or income = expenses. Therefore, it is necessary to know what the “break-even point” of the store is in order to plan and set sales targets to make a profit. The formula for finding the break-even point starts with finding the expenses incurred by the store. Expenses are divided into 2 parts: Fixed Cost Expenses It is a fixed expense that does not vary with sales. No matter how much or how little you sell, you still have to pay. These include employee wages (F/T), rental fees (in the case of fixed rates), depreciation, etc. Variable Cost Expenses It is a variable expense based on sales, including employee wages (P/T), food raw material costs, water costs, electricity costs, gas costs, etc. 
For example: You have good sales and good profits. You have opened a delicious Isaan food shop in the Lat Phrao area for 2 months. You have estimated sales and expenses as follows:
When calculated, the resulting figures show that if your shop sells well, has good profits, and has sales of 300,000 baht per month, you will lose 13,000 baht per month. 
In cases where the calculation results are negative like this, the entrepreneur will know the true status of the business in order to plan to control expenses and find a way to set a target to increase income each month to generate profit. When you know the sales target each month and each day, you have to find a marketing strategy to help stimulate sales, along with managing the costs of each item so that they are not higher than the standard so that the shop has profit and does not lose money anymore.
For example: You have good sales and good profits. You have opened a delicious Isaan food shop in the Lat Phrao area for 2 months. You have estimated sales and expenses as follows:
- Average sales for 2 months is 300,000 baht.
- The average monthly raw material cost is 32% (of sales).
- There are 5 full-time employees and 1 business owner, totaling 80,000 baht.
- The average monthly wage for part-time employees is 10,000 baht.
- There are water, electricity and gas bills with an average monthly bill of 27,000 baht.
- The rent is 55,000 baht per month.
- There is a depreciation cost from investment in shop construction of 30,000 baht per month.
- There are miscellaneous expenses such as stationery, printed materials, flyers, menu media, repair work, transportation costs, and shopping, with an average of no more than 15,000 baht per month.
When calculated, the resulting figures show that if your shop sells well, has good profits, and has sales of 300,000 baht per month, you will lose 13,000 baht per month. In cases where the calculation results are negative like this, the entrepreneur will know the true status of the business in order to plan to control expenses and find a way to set a target to increase income each month to generate profit. When you know the sales target each month and each day, you have to find a marketing strategy to help stimulate sales, along with managing the costs of each item so that they are not higher than the standard so that the shop has profit and does not lose money anymore.
