In today's episode, we delve into the vital topic of accounting for overhead costs in business. It's a crucial aspect that often gets overlooked when pricing out projects. We often forget to factor in additional expenses such as equipment, vehicle costs, fuel, tools, and various insurances like vehicle insurance, tags, workman's comp, and general liability.
I cannot stress enough how important it is to account for all these overhead expenses. Failure to do so can lead to working for free or experiencing burnout. Many small businesses fail within five years, and a significant reason for this is neglecting to include overhead costs in their pricing.
To prevent this, it's essential to incorporate a rough percentage for overhead and profit in project quotes. By doing so, we not only increase the chances of acceptance but also ensure adequate compensation for the work we do.
Let's always remember to do good work and consider all expenses thoroughly. By factoring in overhead costs and pricing our projects accordingly, we can guarantee that all our overhead expenses are covered and prevent unnecessary stress and financial instability. So, let's make sure to account for those overhead costs and thrive in our businesses.