Projecting Overhead for the New Year

“To properly control overhead costs we need a budget to start from.”


In today’s episode, I discuss establishing and projecting our overhead costs for 2020.

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E604: Year End Overhead Review

Overhead costs can erode our profits if we are not using the correct markups.


  1. We are closing out 2016
    1. Time to start reviewing our year
    2. We need to take a look at how we did
    3. A key area to review is our overhead
  2. Overhead and administrative costs can be a silent killer
    1. Most contractors price overhead as a percentage of costs
    2. Often times we calculate our overhead as a function of revenue
      1. This is a common mistake that can cost you – make sure you are comparing the right numbers
    3. Another common mistake is not calculating overhead properly or regularly to adjust markups
  3. Review your overhead in detail
    1. Don’t just rely on your Profit / Loss statement – dig into the details and verify
    2. Double check your markup percentages – will your markup give you enough money to cover overhead
    3. Create your new budget for 2017 and compare to projected revenues to adjust markups

E284: Business Budget

Running your business without a proper budget is a plan for failure.

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Episode 64 – Managing Overhead

“To increase profits you must fist control your costs.”

Today we look at getting a handle on our overhead costs.

Read More