What are overhead costs? Those are the things you pay for so that you can do business. It includes rent, salaries, taxes, marketing, office supplies, cleaning service, equipment upkeep, utilities, travel, convention expenses – in short, everything that is not directly billed to your customers. Minimizing these costs allows you to better allocate funds in your budget. For example, the $5,000 you saved per year by making a few tiny changes could go to buying more online ads to get acquire customers or to a raise for your hard working receptionist. Watching your pennies, especially in things that compound, will add major dollars to your bottom line. Knowing where your money is going can also help when looking for small business funding.