Finance & Moneybeginner
Fixed Costs
Definition
Business expenses that stay the same every month regardless of how much you sell, rent, software subscriptions, insurance, salaried staff.
Why it matters
Fixed costs set your break-even point. The higher your fixed costs, the more you must sell before making any profit. Keeping fixed costs lean gives you financial resilience.
Example
Your monthly fixed costs: Shopify £29, email platform £40, accountant £100, storage unit £80, insurance £35. Total: £284 every month whether you sell 0 or 1,000 units.
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