Every business has overhead. Also referred to as indirect expenses, overhead are/is expenditures a business must make to function, but this outlay does not contribute directly to the generation of profits.
For example, most businesses need to buy (or lease) office furniture for employees to be able to function. Without the furniture, the employee could not effectively work. The office furniture itself, however, does not produce profit.
Some other examples of business overhead could include …
- · Utilities: Gas, water and electricity keeps things running, but may not add direct value to the product or service.
- · Taxes: These governmental expenditures add nothing to the cost of goods sold, but they do serve to support the underlying infrastructure as well as provide protection from fire and theft.
- · Professional Service: Legal and accounting services are necessary, but they do not doanything to ramp up product (or service) value.
- · Insurance: This provides for protection against certain catastrophic events (fire, flood, theft, etc.), but nothing to directly improve sales.
Like any other business, professional services franchises likely incur many of these overhead items. There are three, however, that you might not consider … three that are vital to business success. Business cards. Coffee. And Tire Tread.
Success within the professional services industry (whether or not the business is franchised) hinges on relationships. As all things being equal people do business with those they know, like and trust. To build this involves networking – getting up out of your office and connecting with people.
So, if you are contemplating a professional services franchise (or better still, you own one), you need to factor in [to things] those three things. To be successful, you will have to …
- · Down more than a recommended amount of coffee; and
- · Log countless miles on your car.