Ok, Of course everyone has his own business offline/online, and of course there should be budget of loosing the business, but iI dont know how mch it should be. is it fixed for instance 10%, 20%?? is it out of profit? this is really important. I think th minimum should be 15% of profit, where you can start new business... what do you think?
Ditto! Are you trying to figure how much you can make relative to sales or the amount of profit you should make in order to be viable?
When your business can no longer cover its VARIABLE, is when you shut down. Cover variable before fixed costs. (Economics was a little while ago, so if I've switched it around, please let me know). I hope this answered your question.
I think if you have your finger on the button you should recognise that your business is not performing, and should either do something about, it or pull the plug, long before you reach 15%.
From an economics perspective you hit the nail right on the head. The nice thing about Internet businesses is that the fixed costs are generally so low.