Fixed costs
Costs a business pays regardless of sales volume: rent, salaries, insurance.
Where it is explained in full
Break even and runway: two numbers every owner should be able to say aloud. How many sales before the business stops losing money, and how many months of cash are left if nothing changes. Both are simple. Both are routinely unknown.
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Words beside it
- fixed annuity
A fixed annuity is an annuity where the insurance company promises your money will grow at a set interest rate. It is the simplest kind because the rate does not change with the market.
- Variable costs
Costs that rise with each unit sold: materials, shipping, processing fees.
Ask about Fixed costs
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