Tracking and correcting overhead is just as important as job productivity.
- Common miscalculations
- Using a standard overhead markup and not checking it
- Not allowing for fluctuations in sales
- Not checking and tracking overhead
- The best way
- If it’s job-related it should be part of your cost of goods sold (COG)
- Set your rates based on real historical data
- Try to cover your overhead in 9 to 10 months
- If you overhead is $500K and you do $5M in sales our overhead is 10%
- Your markup should be 12% to cover the $500K in 10 months
- Track and adjust just like productivity
- Track your billings and earnings for each month
- If you are falling behind make adjustments
- Trim you overhead, increase productivity or get more sales
- Just watch lower numbers too much for the sales