Government contracting overhead management is where most small business contractors silently lose profit, and West Edwards breaks down the exact above-the-line and below-the-line system he uses to protect margins and keep his doors open at any revenue level.
West is a roofing and loan services contractor who has watched a $100 million company collapse in three weeks because the owner never controlled overhead, and he shares the budget math that prevents it.
He walks through how to separate true cost of goods from fixed G and A expenses on your P and L, why your overhead percentage climbs the moment you miss your general revenue target, and how to set a budget number you can actually reach instead of a wishful sales goal. If you are bidding federal work and wondering why revenue keeps coming in but net keeps shrinking, this episode gives you the framework to stop the bleed before it starts.
CHAPTERS
00:00 Sponsor: Mendi Media 00:49 Show intro 01:14 West Edwards intro and background 01:35 Job costing every contract 02:02 Setting a realistic budget vs a sales goal 03:04 The $10M example: stacking your team's numbers 03:43 Budget vs sales goal distinction 04:06 Above the line: cost of goods defined 05:22 Below the line: G and A overhead defined 06:14 Why 70/30 is the margin benchmark 07:23 What happens when you miss general revenue 08:22 The $100M company that collapsed in three weeks 09:31 One piece of advice: set a budget you can reach
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