The [[cost structure]] in a business model encompasses all the expenses required to operate the business effectively. This includes not only obvious costs like personnel, buildings, and materials but also the entire range of expenses associated with running the business model. It's important to identify the most critical and expensive [[key resource|key resources]] and [[key activity|key activities]] that drive costs. Additionally, understanding the nature of these costs, such as fixed and variable costs, and whether there are economies of scale, is crucial. By analyzing these factors, businesses can gain a comprehensive understanding of their cost structure, enabling them to manage expenses efficiently and ensure [[financial sustainability]]. ## Activity - Watch the video [Business Model Canvas Costs](https://youtu.be/f_HEz1ET1JE) ([[Udacity - How to Build a Startup]], Lesson 3.11) Back to: [[An Introduction to the Business Model Canvas]]