What are the costs of your business?
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The two essential cost structure elements include:
Fixed Costs. These refer to things you need to spend money on whether you sell anything or not. These could include a factory or office, general administration staff, rent, management staff, etc
Variable Costs. These refer to the money you spend on the sales of your products or services. The more you sell, the more these costs increase. Variable costs include things like the raw material for your products, consultants you hire or work with, etc.