The Breakeven Shortcut
Most investors and marketers waste time calculating total potential upside. I cut straight to the chase: how fast can I breakeven?
If breakeven is quick, the potential upside is higher and the risk is lower. Longer breakeven times? More risk.
I use this breakeven shortcut everywhere—in business, personal life, and marketing. As an active property investor, I buy a depreciation schedule for each property. Most people pay around $800 for one report. Recently, I got a report showing $100,000 in claimable depreciation.
So, is a second depreciation report worth it?
For it to make sense, the second report needs to provide at least $800 in additional tax benefits. With a 45% tax rate in Australia, that means finding an extra $1,778 in depreciation. My gut says it’s a no-brainer.
The timeframe to get this benefit? Just a few days. Easy decision.
The result? An extra $111,500 in depreciation, which equals $50,175 in extra tax savings—all from an $800 extra investment.
This breakeven shortcut also applies to marketing. Instead of spending weeks analyzing potential ROI, focus on how quickly your marketing campaign can recoup its costs. Fast breakeven means higher potential upside and lower risk.
In short, whether it’s investments or marketing, focusing on how fast you can breakeven simplifies decisions and leads to bigger upside with lower risk. It’s a quick way to qualify opportunities and make smarter moves.
Decision velocity is a huge predictor of success. The faster you make informed decisions, the quicker you can capitalize on opportunities and stay ahead of the competition.