A company’s fixed costs are the inescapable bonds of the financial pressure that weighs upon a company’s soul regardless of whether the revenue stream is flowing or dry. The everyday bills are associated with doing work, the insurance premiums for the company, property taxes, and, yes, even employee payments. You, yes you, are a fixed cost.

The fixed cost acts as a baseline that is crucial to meet, and a higher fixed cost is met with a higher demand for revenue, production, and movement.

But an essential thing for all companies to remember is this: unless there is a significant reason to increase a fixed cost, I would recommend against it because, well, it’s a commonly known thing…if it isn’t broken, don’t fixed cost it.