Strategy
Understanding Operating Expenses (OPEX) for Startups
March 12, 2026
8 min read
For startups, managing cash burn is a matter of survival. Operating Expenses (OPEX) make up the majority of this burn.
What are Operating Expenses?
OPEX are the costs associated with running the day-to-day operations of your business. They do not include the direct costs of producing goods (COGS).
Common Startup OPEX
- Rent and utilities
- Payroll and benefits
- Marketing and advertising
- Software subscriptions (SaaS)
- Insurance
Managing OPEX
Regularly reviewing your OPEX is essential. Use financial models to predict how changes in OPEX will affect your runway and profitability.
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Conclusion
Effective financial management is a continuous process. By staying informed and using the right tools, you can ensure your business remains profitable and sustainable in the long run.
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