The "cost structure" of a business refers to the expenses that the organization incurs to operate and provide goods/services to customers. A business that is designed to have a lower cost structure will achieve greater profitability. The cost structure comprises of fixed and variable costs. Variable costs increase directly with the level of sales, while fixed costs are generally incurred regardless of the level of sales.
Common types of financing for new businesses include: equity, straight debt, revolving debt, preferred equity, convertible debt, leasing, hire purchase, grants and vendor financing. The pros and cons for each of these financing methods should be considered (assuming you have a choice).