How Overhead Costs Will Kill Your Small Business if You Don't Watch Them Carefully

Small business overhead costs are the silent killer that takes down more government contractors than slow sales ever could. In this episode, West Edwards breaks down exactly how to separate cost of goods from G&A expenses, calculate your real net profit, and spot the moment your overhead starts eating your business alive. If you have ever wondered why your revenue keeps climbing but your bank account does not, this conversation gives you the math to fix it. Learn how to properly split cost of goods sold from general and administrative expenses across roofing, consulting, and service businesses Walk through real dollar examples on a 10 million dollar roofing company and a 1 million dollar consulting firm to see how net profit actually shapes out Discover why your overhead percentage explodes the moment your top line revenue drops and how to plan for it before it sinks you Understand when travel, software, and subcontractor costs belong in cost of goods versus when they belong in overhead Find out why putting yourself on payroll with a consistent paycheck makes you bankable when you go to borrow money for growth EPISODE CHAPTERS: 0:00 - AI research assistant Mindy finds federal opportunities 0:38 - Federal Help Center podcast welcome and introduction 1:00 - Cost of goods versus administrative expenses explained clearly 1:57 - Net profit calculation from real revenue numbers 2:53 - Overhead can eat your business alive quickly 3:23 - Overhead percentages for consulting and service firms 6:46 - Revenue drops affect your overhead percentage badly 8:43 - Paying yourself a salary helps secure loans Mindy gives you the federal opportunities, agency signals, recompete intel, and pursuit briefs that tell you not just what contracts exist, but which ones to chase and how to win them. Sign up for free Daily Alerts and get opportunities delivered to your inbox before the day starts. 👉 Get your free Daily Alerts here 🔗 Website: Connect with Encore Funding:

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How Overhead Costs Will Kill Your Small Business if You Don't Watch Them Carefully is an episode from Govcon Giants by Eric Coffie.

This episode is 09:32 long.

This episode was published on May 29, 2026.

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