The only thing permanent in business – is change! Sales volumes go up, and down. Businesses that market their products and services through the internet incur lower fixed costs. Internet business models are challenging many brick and mortar businesses models.
If your business does not adopt technology, designed to eliminate fixed costs, then your business cannot compete with competitors, who integrate technology in their business models; allowing competitors to jettison a considerable portion of their fixed costs – reducing their breakeven.
You need to review job descriptions to confirm labour costs reflect use of labour in the most productive manor. Benefit plans, insurance and utility costs should be quoted annually as the market for these fixed costs is becoming very competitive.
Operating day to day can cause you to fail to see where to reduce, eliminate, or reallocate certain fixed costs.
An outside expert is best suited to produce an objective view for you about your company's fixed costs.