Glossary · Reading the business
In short
Expenses related to the general management and overhead of a business, not directly tied to producing goods or services. Examples include office rent, salaries for administrative staff, and utilities.
These costs are part of the business's operating expenses and directly impact its overall profitability. When analyzing financial statements, identify whether administrative costs are reasonable for the business's size and industry. High or rapidly increasing administrative costs without corresponding revenue growth can be a warning sign.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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