Cost structure
The cost structure refers to business expenses, such as salaries, resources, and infrastructure. Consider the following questions:
- What are the most important costs inherent in our business model?
- Which key resources are the most expensive?
- Which key activities are the most expensive?
For software companies, the primary driver of costs is employee salaries. In some cases, infrastructure costs can be high, and may be an important factor to consider. If your product involves hardware, like an IoT device, the cost structures are likely to be significantly more complex. Choosing between iOS, Android, and other mobile platforms may be a factor while considering costs of developers as well.