The Cocktail Napkin Test

The Cocktail Napkin Test
SMALLBIZ ADVISOR By Warren G. Purdy

When I first evaluate a potential business venture or an idea for a new product/service, the tools I need for my initial phase of analysis are simply a #2 pencil and a cocktail napkin. With these simple tools I try to determine the level of sales needed to generate enough income to cover my costs.

Get good advice on calculating the break-even sales point for your products or services. Read Warren G. Purdy's column, The Cocktail Napkin Test
http://newsletter.smallbizresource.com/cgi-bin4/DM/y/nvLp0ITmhF0NqJ0EORt0E7