Definition

The ongoing costs required to run a business, such as rent, utilities, and salaries.

What to consider

  • Keep track of the daily costs to run your business.
  • Review these expenses to identify areas for cost savings.
  • Compare them against revenue to gauge overall efficiency.

Real world scenarios

  • Before launching the new service, the startup carefully monitored its operating expenses to ensure that daily costs did not exceed revenue.

Related terms

Budgeting & Spending