Cost Structure

A simple explanation of the sustainable business model canvas for the “cost structure” factor

The cost structure comprises the various expenses associated with the development, production and operation of your business model. A precise analysis and a deep understanding of these costs are crucial to ensure the profitability and long-term success of the business model. Typical cost categories in this area are:

• Production costs: Costs for materials, manufacturing and processing
• Operating costs: Ongoing costs of running the business, such as rent, electricity, insurance, salaries and other operational expenses.
• Marketing and distribution costs: Expenses for advertising, distribution and marketing of the product or service, including costs for marketing materials, campaigns and sales staff.
• Technology and infrastructure costs: Costs for the use of technology and infrastructure, such as software licenses, IT infrastructure and server costs.
• Research and development costs: Costs for the development of new products, services or technologies and for research into new markets or trends.
• Other costs: Other relevant expenses for business operations, such as legal and consulting costs.

It is essential to record and analyze the cost structure in as much detail as possible in the business model canvas. This provides a realistic picture of the financial requirements of the business model and helps to identify potential risks and challenges at an early stage. Appropriate measures can then be taken to ensure the company’s profitability.

Download our free Business Model Canvas template in German and English to present your business model clearly. Our templates are available in PowerPoint, PDF and Excel format.