Cost Structure
Business Model Canvas definition of “Cost Structure”
This section covers the various costs associated with the development, production and operation of your business model. It is crucial to understand and analyze the costs accurately to ensure that the business model is profitable and can be successful in the long term. Typically, the following costs are considered in this area:
- Production costs: cost of 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: Costs for advertising, distribution and marketing of the product/services, 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 costs that are relevant to business operations, such as legal and consulting costs.
It is important to record and analyze the costs in the lean canvas in as much detail as possible in order to obtain a realistic picture of the financial requirements of the business model. This makes it possible to identify potential risks and challenges at an early stage and take appropriate measures to ensure the company’s profitability.
In addition, it is advisable to regularly review and update costs, as financial requirements can change over time. By continuously analyzing and adjusting the cost structure, your business can be agile in responding to changes and ensure its financial health.
Download our free Business Lean Canvas or Business Model Canvas template in German or English if you want to present your business model clearly. Our lean canvas or business model canvas template is available in PowerPoint, PDF and Excel format.
