Cost Structure in business model canvas

The cost structure of a business is one of the 9 key components that make up the business model canvas. Simply put, the cost structure refers to the costs associated with running a particular business. This includes things like: 

• labour costs

• raw materials

• overhead

• marketing expenses 

How startups and growth-oriented businesses can think about cost structure in the business model canvas

The goal of any startup or small business should be to minimise its overall cost structure while still being able to generate revenue and profitably grow its operation. 

There are many ways to do this, but it often comes down to finding creative solutions and making use of technology where possible. Example include:

• Automating tasks wherever possible. This can help reduce labour costs significantly over time

• Using social media platforms for marketing instead of traditional methods. This can also save on advertising spend. 

Ultimately, having a well-defined cost structure is essential for any company that wants to be successful in today’s climate – especially if you’re operating on a tight budget! 

By understanding exactly what your costs are and where they’re coming from, you can make more informed decisions about how best to allocate your resources (time, money & people) going forward.

Looking for more insights into the business model canvas for your company? Contact 555 vCTO