OpEx (Operating Expenditure)
What is OpEx (Operating Expenditure)?
Operating Expenditure (OpEx) refers to the day-to-day expenses that a business incurs to run its operations. These costs include rent, utilities, payroll, and other recurring expenses necessary to keep the business running. For startups, managing OpEx efficiently is crucial for maintaining a healthy cash flow and ensuring long-term sustainability.
Types of OpEx
- Employee Salaries: Regular payroll expenses for staff.
- Rent and Utilities: Costs for office space and essential services like electricity and water.
- Marketing and Advertising: Expenses related to promoting products and acquiring customers.