Do You Know Your Overhead Cost?

Discussion in 'Business Operations' started by cpel2004, Sep 19, 2007.

  1. cpel2004

    cpel2004 LawnSite Bronze Member
    Messages: 1,415

    I've been a member of this site for almost three years and over that time I have seen so many post including my own asking how to charge and what to charge, for certain type of jobs.

    Usually the first responders to the thread talk about knowing the cost it takes you to run your business, then and only then can you determine your price. In a attempt to educate and share knowledge with other LCO I have listed a link to the SBA website that contains many helpful financial forms to help determine your overhead cost(general continuing cost involved in running a business).

    Use the income statement, add up your projected total expenses / divide it by the total labor hours = the min per hour charge to operate your business.

    I hope this will help.

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