From the course: Running a Video Production Business
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Understanding overhead
From the course: Running a Video Production Business
Understanding overhead
- Now I know you've been waiting for this chapter on understanding overhead. Don't worry, we're going to explain it. Let's talk about what's in overhead and then we'll talk about what's not in overhead. Overhead is anything that's a fixed cost. That's your utilities, your rent, your salaries, legal fees, insurance, anything that's basically not going to change, even if nothing happens in your company and you have no work, which is basically the worst case scenario, right, so that's why people want to get overhead reduced because those are costs you have to pay out no matter what's coming in. Now there are also variable costs that are not usually part of overhead. So those would be anything that varies by project. That might be outside crew that you hire or gear that you have to rent for a particular project, or travel expenses just for the project, or expendables like hard drives, or gels for lights. But remember that I'm…
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