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DeckingOutKC said:
If this is already on here I apologize but I can't find it, although it's very possible that I'm just not looking for the right keywords. Okay, I know that each company will have different numbers for each job. I am trying to get a business up and running. For the fall/winter I plan on just doing a little part time work (this is a deck business, not too many people want to sit outside in the cold) just to get my name out there and get my feet in the water. This spring I plan to quit my job and go full time. I'm sure I will not have enough business (at first) when I go full time to put in a full 40 hr week (of swinging a hammer, not including paper work etc.). Now I know how much I'll charge for labor, what my overhead cost will be, and what I want for profit. My question is if my overhead is "x" amount of money a year, month, week, etc. do you just add in the overhead as if I worked full time, without changing anything, and just take the loss, or do I compensate for lack of business? I'm afraid if I, say double, my charge for overhead to make up for lack of business I will bid myself out of the water. I also don't think it's the customers fault that I don't have a full schedule. Another thing I was thinking was maybe I am breaking my overhead down too far. Instead of breaking it down to a day or hour (depending on job) maybe do a week. If I could build 2 average decks a week, and only get one just have my overhead for the week covered by that job. As I type that I guess it's basically still having the customer reimbursing for my lack of business. :blink: I guess that's why I'm asking you guys. Thanks for the help guy:thumbsup:. And if something doesn't make since please ask, I had trouble figuring out how to word some things.
How much overhead can you have when your not doing jobs. This is key to my success. I don't have a fancy office, so if I don't have work I don't have a lot of overhead.

There are certain things I have to have all the time. Like my vehicles and my bookkeeper. But that's pretty much it for my business. Now I have personnel bills that don't stop because I stop working, those are the ones that are costly. I wake up on the first of every month and owe about $7000.00. Mortgage, kids college and all the other chit it takes to survive.
 

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DeckingOutKC said:
Do you add your personal expenses on top of your salary to your overhead?
The only thing I add to my company is things I can legally write off as an expense. But I pay my insurances at the beginning of every year, vehicles and GL. My overhead is very low. I pay a bookkeeper a lawyer on occasion and my accountant. My father was a contractor and always preached that you pay your professionals very well, they will keep you out of trouble and save you money.
 
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