19/09/2026
🚨 The Problem:
A business can have strong sales and still struggle to make a profit. Why?
💡 The Reason:
Revenue is not the same as profit.
To understand whether a business is financially viable, you need to compare its total revenue with its total costs.
📊 Key Concepts to Understand:
🔹 Revenue: The money generated from selling products or services.
🔹 Costs: The expenses required to operate the business.
🔹 Profit: What remains after subtracting costs from revenue.
🔹 Break-Even Point: The point where total revenue equals total costs — meaning the business is covering its expenses but has not yet generated a profit.
✅ Why Does It Matter?
Understanding these numbers helps business owners set realistic targets, evaluate pricing, and make better financial decisions.
💼 A successful business isn't just about making sales — it's about understanding the numbers behind them.
➡️ Next: We’ve studied the market, costs, and profitability…
So, is the business actually worth the investment?
To be continued…
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🌐 Website: https://www.liverpool-college.uk/