Bot, Do you not have any accounting going on? Your overhead can be gathered from your books or software or your accountant. It includes EVERYTHING it takes to run your business. Rent, building & vehicle insurance, loan payments, fuel, average repair costs, tool expenses, vacation/sick time expenses, retirement benefits, permits, advertising, telephone & utilities, office supplies, accountant fees, legal fees, permits, licensing, computer & software expense and anything else you might spend. I suspece you really need at least six months to a year of data to get a decent idea of what you are spending on a monthly average.
The other thing is labor burden which includes work comp, liability ins, fed & state unemployment expenses and possibly health insurance benefits. These costs are a % of each dollar you pay your help.
Until you get an idea where you're at, you cannot be competitive with maximum profit. You are shooting in the dark with a WAG! You bids will have too much profit or too little. Your competition may have more overhead but if he knows what he can get away with he may cut his profit a bit to keep his men busy til a better job comes along. I've lost a $20,000 bid by as little as $50!
Too little profit and you close shop or work your but off for nothing. Too much profit and you will likely have too much free time on your hands, which your men will not like and will look for a job elsewhere if they aren't getting their time in.
If you want to do this and enjoy it you've got to do your homework. It will be much more enjoyable when you're making money and staying busy! Good luck.
Last edited by teester; 07/23/07 10:48 PM.
