Map Your Cost Structure to Reveal Growth Leverage
Instructions
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List your major expenses and label each as fixed or variable. Differentiate what changes with scale (variable) and what stays the same no matter your sales (fixed).
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Calculate your breakeven point. Use your average price and variable cost to find how many units or clients you need just to cover fixed costs.
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Identify one area to shift fixed to variable or vice versa. Ask where you could outsource, automate, bring in-house, or renegotiate, to strategically alter your risk and upside.
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