Fixed Costs
Costs that stay roughly the same regardless of how much you sell, like rent, salaries, and software subscriptions. You pay them whether you have one customer or a thousand.
Why it matters
Fixed costs set your baseline burn and your break-even point. Keeping them lean early gives a startup more runway and more room to experiment before the model is proven.
For example
Rent, salaries, and software subscriptions of 25 lakh a month are fixed costs the startup pays whether it has ten customers or ten thousand.
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Related terms
Also in Starting Up
See how founders actually handle this on Money, pricing and metrics, part of the Starting Up hub.
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