← Glossary Business glossary
What is Overhead?
The ongoing costs of running your business that are not tied to a single sale.
Overheads are the fixed-ish costs you pay to keep the lights on: rent, software, insurance, subscriptions, your time. They are separate from the direct cost of what you sell (COGS).
A business can have a great gross margin and still lose money if overheads are too high. Watch both.
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