A World-Class Business Education in a Single Volume

The Personal MBA

Master the Art of Business

2nd Edition, Revised & Expanded

This is a preview of a key idea from The Personal MBA: Master the Art of Business by Josh Kaufman. Order your copy now...

Overhead

“Beware of little expenses; a small leak will sink a great ship.” — Benjamin Franklin, early American political leader, scientist, and polymath

Key Ideas:

• Overhead is the minimum ongoing resources required for your business to continue operations.
• The lower your Overhead, the less revenue you need to keep going.
• Overhead is critically important if you’re building your company on a fixed amount of capital. The faster you spend it, the more quickly you’ll need to bring revenue.
• A lower Overhead means more flexibility.

Questions for Consideration:

• How much are you spending each month, even if you don’t sell anything?
• How can you minimize your business’ expenses without decreasing critical capabilities?

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