Break-even analysis is an important business tool for understanding how much money you need to generate in order to cover all of your operating costs. This type of analysis provides insights into the level of sales or services that must be provided in order to make a profit. By accurately estimating fixed and variable costs, you can set realistic goals on pricing and quantity of services that should be met in order to stay solvent. Through break-even analysis, you’ll also gain insight into which services or products may be most profitable for your business. It’s an essential component for any successful business plan!