There a few points one should know about overhead. The wealth creation expert Keith Cunningham learnt a lot about it in the lesson of overhead and also prepared a list of all the facts he collected:

• Stay lean even if you can afford to get fat. Keep overhead low!
• Watch your cash VERY closely. Ask yourself, “Do I really need this?… Will this help me make more money?” Once you spend it, the cash is gone.
• Each line item of your financials should be scrutinized on a continuous basis to make.
• Conserve cash, especially during the good times. Spending money to look like a big deal is not the same as being a big deal.
• When you’re out of cash, you’re out of business. Cash is truly KING.
• When the market shifts, you can’t cut overhead fast enough.
• It is easy to over pay or beef up when the world is viewed from only an upside perspective.
• Cut overhead early and hard. Pride and hubris kept us from cutting our overhead in a timely manner.
• Fancy offices, hot cars, lots of staff and high overhead are signs of significance, not success.
• Knowing your numbers, what it costs to run each aspect of your business and having timely information, is critical to success.
• Focus on the costs of doing business and not just the revenue potential.
• Bringing
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  “consultants/outside services” in house (architects, land planners, engineers etc) is a bad idea. The temptation is to look for busy work to justify the overhead and when the market shifts, they are expensive to cut. Contract out as much of the work as possible

The content of the list tries to emphasise how important cash is for a company and that overhead should always be kept low.