The Perfect P&L for Service Businesses, With Adam Rundle
The Agency Profit Podcast
The Importance of Fixed Overheads in Business Development
We want to see a delivery margin of ideally 50% on the profit and loss statement. We like to isolate like payroll from non payroll overhead expenses but generally we would like to see overhead be 20 to 30%. The combination of all overheads is the most important number for us okay fixed overheads in our world is things like rent software insurance and utilities variable overheads is pretty much everything else in your business that could potentially exist outside of labor and acquisition cost.
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