What should be included in my overhead? Fuel, all equipment costs, truck maintenance, labour, and advertising?
Great question. So many small business owners know what overhead is... as a definition. But most small to medium sized business owners are losing money because they haven't done the simple work of categorizing their expenses properly. It is so critical to classify your expenses accurately. Why? Because some expenses get recovered directly in your estimates (like your material costs) while others have to get recovered as overhead.
...and if you don't know exactly what your overhead costs are, then you can't possibly be sure that your prices are covering all your company costs. Unfortunately for most contractors, profit is less than it should be - because they've never taken the time to calculate exactly what their overhead costs are.
The answer to your question is not exactly straight forward, but the explanation of the answer is. Overhead expenses are not consistent from company to company. What might be overhead for me is not overhead for you, and vice versa. Confused? Don't be. The answer is simple. Here's ...
I'm toying with the idea of doing a name change after 10 years in business. The current name was suitable with the initial business concept, but I now feel it tends to be a bit misleading and doesn't reflect what we've grown into. What do you see as the benefits/pitfalls/risks with doing this?
I am in the process of setting up a landscaping business in Ottawa. Your website has been great and I will continue to work through the information. I am however looking for specific information about the market in Ottawa. Is there a demand for another landscaping company? What might I focus on to fill certain voids or meet demands? What are the average markups for costs, overhead etc..in this part of the country? Many more things to look into on my part but I wanted to throw these questions your way.
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, starting landscape business
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