Overhead

Over the next Several Weeks we will be posting a new and different one-minute video providing business tips and instructional commentary for small business owners.   These tips will range from key metrics to consider to the importance of Business and Cash Flow Forecasting.


Overhead profusion, otherwise known as spending on non revenue generating activities. Overhead profusion must be countered with discipline, and consistent monitoring. My name is Michael Barbarita from Next Step CFO providing outsourced CFO Services with your know your numbers minute. If your company grew 20% last year while your overhead spending grew by 50%, you probably have some profusion in your overhead. Now I’m not suggesting you don’t invest in systems, infrastructure, people and technology, but I am suggesting that some entrepreneurs have a tendency to allow their overhead growth get a little ahead of what it should be. Watch your overhead, even when sales are growing. And remember, the most successful business owners know their numbers!

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