Business and Finance Reviews

Posts Tagged ‘SBA’

Calculate Your costs
Before You set the price for the services your company provides, You need to understand the cost of providing these services to Your customers. The U.S. Small Business Administration suggested that the production cost of any service consists of three parts:

Material cost. This is the cost of goods you use in providing services. A business will need to clean the cost factor paper towels, cleaning solutions, rubber gloves, etc. A car repair business will count to the cost of supplies, such as spark plugs, brake pads or is being installed by the service. You may want to enter a list of materials with Your estimate in bidding the job.
Labor costs. This is the direct labor cost you hire to provide services. This will be the hourly wage clean-up crews and/or a portion of Your salary and benefits of mechanized while they provide services to your customers. SBA recommend using time cards and time to keep tabs on the number of hours of work involved in providing any service to customers.
Overhead costs. This is the indirect costs to your business in providing service to customers. Examples include labor for others who run the company, whether an Administrative Assistant or human resources personnel. Other overhead costs including your monthly rent, taxes, depreciation, insurance, advertising, Office supplies, utilities, mileage, etc. show that the number of SBA’s reasonable of overhead costs should be charged for any service performed, both in hourly rate or a percentage. One important thing to note: don’t just depend on the figures from last year to determine Your overhead. You need to put a customer includes the cost of the fare You at this time, including large salary to employees, inflation, etc.