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Analysing sales trends, profit and break-even

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Spend some time considering how robust the business model is. For example, what’s the break-even point for sales? If sales drop by 10 per cent (which is quite possible during ownership change), is the business still sustainable?

The second thing to consider is how the gross profit of this business compares with industry trends. If the gross profit margin is higher than average for the industry, this business may be more vulnerable to competition.

Small Business for Dummies

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