Friday, July 10, 2009

In a break even analysis? -

In a break even analysis for a night club, is it bad that one night doesn t reach the break even point and comes out negative? For example, say a nightclub is open 2 days a week. The weekday is $2 admission and doesn t reach breakeven point. The weekend is $10 admission and reaches way above break-even point and the net profit comes out positive. Is it fine to have a day that doesn t reach break-even but then have another day that compensates for its loss?

Yes. Not every day in a business is going to be profitable. As long as the end result is a net profit then you re making money. Instead of taking that loss on the weekday why not close that day or come up with a creative way to get more people in. There are a lot of ways to do that with a nightclub. Ladies night is a common way. You can also hire some hotties to come in and hang out. That will bring the guys in to spend money.

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