Blog

23 Oct 2016
Practical Break-Even Calculations For an RMU Business, Post III

  In the last post we calculated the break-even point for an RMU business with one item in its product line. Although instructive, it’s hardly realistic. In this post we will look at an RMU business with a four items (the method is the same for forty items, or four hundred), each with a unique […]

23 Oct 2016
Practical Break-Even Caclulations for an RMU Business, Post II

  In the last post I demonstrated a simplistic approach estimating how much rent a merchant can afford.  It was a simple matter to calculate the number of units a sunglass merchant must sell to pay his rent.  Let’s reexamine the sunglass merchant and his RMU business, but this time we want to know what minimum sales […]

23 Oct 2016
Practical Break-Even Calculations for an RMU Business, Post I

  Business models are often thought of as the tools of venture capitalists, bankers, and academics.   However, a model for an RMU business, wielded effectively, can be invaluable to developers and merchants alike. A good model predicts the merchant’s ability to pay his rent, estimates how many units must be sold to reach break-even, and […]