Overhead
Overhead is the ongoing cost of running a business that is not tied directly to producing a specific product or service.
Overhead covers the fixed and indirect costs of being in business — rent, software subscriptions, insurance, and administration — as opposed to the direct cost of materials and labor for a particular job.
Understanding overhead is essential to pricing correctly. If you price only to cover direct costs, overhead quietly eats your margin. Spreading overhead across expected jobs tells you the true floor below which a price loses money.
Profit margin
Profit margin is the portion of revenue that remains as profit after costs are subtracted, usually expressed as a percentage of revenue.
Break-even point
The break-even point is the level of sales at which total revenue exactly equals total costs, so the business makes neither profit nor loss.
Fixed cost
A fixed cost is an expense that stays the same regardless of how much you produce or sell within a given period.
Put Overhead to work this week.
Knowing the term is step one. The Apex membership ships the systems, templates, and AI assistants that turn concepts like this into a running operation — done for you.