"Joe" is an amazing electrician and runs a small business. He has 3 trucks and 5 employees. He wants to take a look at his costs. Like most business owners "Joe" starts thinking about the supplies he uses and one day a friend of his says, "Well, Joe, you might finds some savings if you take a look at your INDIRECT costs. Those sometimes are easier to control that your direct costs."
Like many small business owners, Joe doesn't know the difference in a DIRECT and INDIRECT cost. Hopefully this will help!
Indirect costs are costs which cannot be directly traced to the specific job or sale. These costs are generally called overhead expenses. Examples of indirect costs may include utilities, insurance, vehicles and fuel, Cell phones, office space, building maintenance and other expenses related to running an office.
A small business can do the following 5 things to look at reducing their indirect costs:
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Hilary understands what it is like to balance family, business, and purpose. She has a growing business, 3 kids, a marriage and is involved in her community. She wants to connect people to the right resources.