The ongoing expenses of running a business that are not directly attributed to the production of goods or services.
Overhead refers to the ongoing business expenses that are necessary for the operation but are not directly tied to the production or sale of specific products or services. These expenses include rent, utilities, insurance, salaries of administrative staff, and other general costs. Small business owners need to carefully manage overhead to maintain financial stability and allocate resources efficiently, as it can significantly impact the profitability and competitiveness of their business.