Definition
Overhead expense is the fixed costs that a business incurs regardless of production levels. Founders reach for it when a vague conversation needs a shared, specific meaning. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.
In the room
How the word shows up in a real conversation.
You know Overhead expense is doing work when it changes a weekly choice — price, hire, channel, or kill. The working definition: Fixed costs that a business incurs regardless of production levels.
Common mistake
Using Overhead expense as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Overhead
Ongoing business expenses that are not directly tied to producing goods or services.
Read definition →
Overhead cost
Indirect costs associated with running a business that cannot be directly attributed to products.
Read definition →
Overproduction
Manufacturing more products than can be sold or consumed.
Read definition →
Ownership interest
Legal right to a portion of a business's assets and profits.
Read definition →
Research more
Open the word in an AI tool with a ready prompt. We do not send your data.
Get one word every week
A 3-minute read: 1 word, 1 founder lesson, 1 tool.