💡Identify and calculate your overhead costs, including rent, advertising, salary, and other business expenses.
💼Include your own salary as part of your overhead costs.
📊Subtract your overhead costs from your revenue to determine your break-even point.
💰Any amount above the break-even point is profit.
📈Regularly review and adjust your pricing to ensure you are covering your overhead and making a profit.
What is overhead?
—Overhead is the total cost of running your business, including rent, advertising, salaries, and other expenses.
How do I calculate my overhead costs?
—Add up all your monthly business expenses, including rent, utilities, advertising, salaries, and any other recurring costs.
What is the break-even point?
—The break-even point is the revenue you need to cover all your overhead costs.
How can I ensure I make a profit?
—To make a profit, your revenue must exceed your total overhead costs.
Should I regularly review my pricing?
—Yes, it's important to regularly assess your pricing to ensure you are covering your overhead costs and making a profit.
11:58Knowing your overhead costs is crucial to pricing your services effectively.
12:33Your revenue should exceed your total overhead costs to make a profit.
13:10Regularly review and adjust your pricing to ensure you are covering your overhead and making a profit.
