What are the essential costs you will incur in operating the business model mapped out in the boxes above on the business model map? In the cost box, list the most important costs incurred to run your business and deliver on your value proposition. Figuring this out is simple; just look at your resources, activities, and partnerships boxes. What are the major costs incurred to use those resources, complete those activities and work with those partners? 

Finding customers, delighting customers, and delivering value all cost money. You can fill in the cost box on the business model map in two ways. First is to list and add up the most important cost of maintaining and operating your resources, activities, and partnerships. These numbers should give you a clear idea of your baseline cost to operate. 

The other option is just to list the major line items for operating your resources, activities, and partnerships. If your business struggles to produce sufficient margin, then we recommend you go ahead and list the average costs next to each line item. If profit margins are not an issue for your business, then you can just list the line items. The goal is to capture the most important things you must pay for to deliver on your value proposition. 

There are two primary cost structures, cost-driven and value-driven. Cost-driven companies are more focused on minimizing costs wherever possible. Value-driven companies are primarily focused on creating more value. What cost structure does your business have? 

Examples:  A luxury resort has a value-driven business model, and Walmart has a cost-driven business model.