flynn019

Your business is said to break even at that precise point where your net profits [ your price per unit less your variable cost per unit ] x [ your total volume of units sold ] equals your fixed costs in total . If you don't breakeven , you will incur a loss, and eventually have to go out of business or play golf with the right politician or lobbyist so you can be subsidized as your continue to fail. Bailouts ? No such thing. They're really subsidized, prolonged losses. From an " Economic Darwinism " point of view, they are bad for any business (eventually), and terribly bad for any nation's economy. Borrowing to cover losses is habit-forming [please read the package insert from your prescribing banker!]. A business which cannot breakeven is an inherent failure . And these expensive abominations usually come into to being from their very inception because an entrepreneur, a strategic business planner, a project manager, or some other person builds a plan upsi

During the course of these three next articles (starting with this one) on The Business And Project Planning And Management Blog , we will cover three crucial topics. Each one is essential to thorough business planning , project planning and risk assessment . They are: 1 ) Sensitivity Analysis -- Your Business' " Stress Test "; 2 ) Breakeven Analysis -- Your Business' " Tipping Point "; 3 ) Variance Analysis -- Your Business' " Marksmanship ". Sensitivity Analysis (your business ' 'stress test') is one of the most useful analytic and planning tools ever invented and it is dramatically underutilized. It is an anticipatory device which can expose each and all of the areas of vulnerability in your business or project plan . Following is a frighteningly confusing diagram which I was going to use to illustrate some aspect (any aspect!) of Sensitivity Analysis. I was too confounded by the picture to post it up at the beginning of this

Please refer to replacement article at http://businessandprojectplanning.blogspot.com/2012/03/sensitivity-analysis-your-stress-test_17.html Thank you. Douglas E. Castle

The two hottest, most demanded certifications at present, and probably for the next two to three years (my estimate as a Global Futurist ) are these, each followed by its description via Wikipedia (which is, ironically one of the World's most useful and popular resources, but which is struggling for adequate capital to maintain its very existence - please contribute to them if you can. Every little bit helps): 1. PMP Project Management Professional Project Management Professional (PMP) is a credential offered by the Project Management Institute (PMI). As of 31 July 2010, there were 393,413 active PMP certified individuals worldwide. Over 4,300 individuals a month, since September 2006, have obtained a PMP certification. Many more are seeking or will be seeking this credential. Each exam item (a question with its possible answers) has at least two references to standard books or other sources of project management. Most of the questions reference the PMI A Guide to the Project M