Balloon Business Overhead
Overhead – if you are new to business this word may trip you up a bit. Heck for those of us in business, we often forget about all that is an overhead expense! All businesses have regular expenses that are not directly related to producing goods or services. These indirect expenses are termed “overhead” costs. Most businesses calculate overhead cost on a monthly basis. Typically, overhead cost is expressed as a percentage of sales or labor cost. Keeping the proportion of overhead cost low gives a business a competitive advantage, either by increasing the profit margin or by allowing the business to price its products more competitively. Overhead is all the items added up that are business expenses – the items you need to have to be able to run your business. Examples of overhead:
- Rent/lease or mortgage payment on building your business is run from.
Many balloon professionals start out as a hobby, something fun they enjoy doing and then create a business from this passion. As you make the transition and grow your business, it’s important to treat things like a business and really pay attention to all the cost that associated with that to create a good understanding of the overhead expenses you have. This will allow you to put that expense into your pricing to your clients to allow you to make a profit! Balloon Decor is a wonderful business helping people create special moments that become lifetime memories and celebrating milestone events in life. The key to making it a career that can allow you the income you need to build your dreams for you and your family is taking the time from the get go to treat it like a true business. Know your numbers and set prices that create a profit for you. If you are considering opening up a warehouse or store location, take your time to understand all the cost that are involved in doing so and then calculate how much sales you would need to do a month to cover expenses. Then consider how much would you need to make to make a profit. The key is building a business and client base takes time and a lot of hard work. It doesn’t happen overnight. When you would like some help in taking your business to the next level, have a sounding board and someone to help you on your journey, that is what our one to one coaching program is designed for
. To see more information on resources to turn your business from hobby to full time, check out this blog /balloon-business-or-balloon-hobby/
Your Partner in Success,
Joette Giardina, CBA Mentor. Motivator. Speaker. Check out all our resources including upcoming hands on and online training.