What is Overhead?
The ongoing costs of running a business that aren't tied to a specific sale.
Overhead is the cost of simply existing as a business: rent, software, insurance, salaries, utilities. These costs continue whether you sell one unit or a thousand.
Keeping overhead low is a superpower for a young business — it lowers your break-even point and stretches your runway.
Many businesses fail not because they can't sell, but because their overhead grew faster than their sales. Stay lean until the revenue is real.
Related terms
Definitions from the Business Dog Glossary — educational, occasionally satirical, never financial advice.