A cost structure is one of the aspects that must be considered when defining a company's business model , its importance lies in these reasons:
It is useful for evaluating increases or decreases in costs in general.
It helps calculate the utility and benefits in the sale of a product or service.
Facilitates the projection of total, monthly and annual profits.
Supports total control of a business's finances.
Indicates whether a business is profitable or not.
Read more: Profitable business ideas to achieve the success of your brand
Elements of a cost structure
To put together the cost structure canada phone data of a company , we can classify them into fixed or variable:
Fixed costs are those that do not depend on your business sales (for example: office rent, internet connection, maintenance of your online store, salaries, accountants , etc.).
Variable costs are those that do depend on your sales volume (for example: cost of merchandise, fee charged for payment methods, shipping cost, etc.).
Let's look at each type in detail so that you can create your cost structure without any doubts about these definitions.
Fixed costs
To understand the fixed costs of your business, you need to ask yourself: what are the expenses you would have in a month, even if you didn't have any sales?
Some answers that may come to your mind are:
Office, workshop or premises rental or lease (always includes electricity, gas, water, cleaning and taxes)
Internet connection
Landline and mobile phone (if you have one exclusively for your business)
Salaries (includes all taxes on salaries and not just the “in hand” value)
Accountants
Lawyers
Bank account maintenance
Online store maintenance
Social media advertising
Other operating costs (payment of taxes or import costs, for example)
The important thing is that you can plan these expenses monthly and understand what investment you need to maintain your basic operation.