Start Your Own Construction and Contracting Business by Rich Mintzer

Author:Rich Mintzer
Language: eng
Format: epub
ISBN: 9781613083413
Publisher: Entrepreneur Press
Published: 2016-05-26T00:00:00+00:00

FIGURE 6–3: A Sample Analysis of Office Staff Labor Burden for K&K Contractors

FIGURE 6–4: A Sample Fixed-Cost Budget Analysis

To review, the fixed-cost budget for K&K Contracting amounts to $187,484, meaning that the company expects to spend that much regardless of the amount of revenues that are generated during the year. It is crucial that the fixed-cost budget be realistic and accurate because not only does it impact the pricing of services, it also helps determine the annual revenue required to make a profit. We’ll come back to the profit issue later in this chapter.

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