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Path to profitability

A path to profitability is the specific sequence of revenue growth and cost changes that would carry a company from losing money to covering its own costs.

The phrase is only useful when it is arithmetic rather than intent. A real path names the revenue level required, the cost base assumed, and the date at which the two meet.

It is closely related to being default alive, which is the same question asked as a yes or no.

Keep this number live

Plainhub computes path to profitability from money you record in plain words, so it is current when you need it rather than the night before a board meeting.

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