The Importance of Overhead in Business

Overhead means fixed expenses, fixed expenses. Fixed means you have to pay them every month. If a business has an office or a shop, a store, they probably pay rent. That is part of their overhead. They must pay the rent every single month. Now that might be a little different month to month, but it's usually around the same amount everysingle month. So overhead, this idea of overhead is very, very important for businesses because if you have high overhead, it means you have high regular expenses.