Cost structure within the Canvas Model

We advance in a new chapter of the Canvas Model talking about the cost structure . We are getting closer to creating our complete Canvas , and I want us to focus now on a very important point to ensure the viability of your business . It is about detecting the different costs of your company to divide them and develop them throughout the canvas, taking into account the rest of the modules such as Key Activities , Partners or Resources . As you have seen with the rest of the sections, they are all interconnected, and this new step will give you the necessary information to analyze the profitability of your company or how much money you will need to get it up and running.

Importance of cost structure

As I say, as modules are dependent on others, there will always be connections that can change something about another part of the Canvas. But, in this case, I would recommend completing this block before setting a final price for your Cyprus Phone Number List value proposition . These cost structures in Canvas will give you a global and specific vision of the economics of your business. The idea of ​​maintaining good control in this module is that it will allow you to organize yourself in the best way, reducing possible financial risks and thus increasing profitability . It will also be a good starting point to check the viability of your idea, trying to adjust as much as possible to the real market. But, before continuing, I am going to give you a brief overview of the different types of costs in the Canvas Model cost structure, with examples.

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Types of costs

Fixed costs These are those that, as they are not related to production, do not vary even if it changes. You will always pay the same amount , regardless of the operation of your business. The most common example for fixed costs is Malaysia Phone Number List the rental of a premises or factory. Variable costs On the contrary, we find costs that move in proportion to production. They are part of the production processes, the payment of royalties or some marketing techniques. As examples, we can put electricity consumption, expenses on raw materials or product shipments. Direct costs We are talking here about the costs that are essential for the production and creation of the product or service . Among the most common examples, you can see labor or, repeating a previous point, the use of raw materials.

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