Vinu: Manu, my sales are growing, but profit isn’t improving. I think my costs are the problem. How should I understand them clearly?

Manu: Start by separating your costs into fixed, variable, and hidden expenses. That alone gives clarity.

Vinu: What exactly are fixed costs?

Manu: Fixed costs don’t change with sales.

Vinu: And variable costs?

Manu: They move with production or sales.

Vinu: So higher sales increase variable costs automatically?

Manu: Exactly. That’s normal. The danger is when fixed costs grow faster than sales.

Vinu: Then what are hidden expenses?

Manu: Costs that silently drain cash but don’t look like operating expenses.

Vinu: Why are hidden costs dangerous?

Manu: Because they are not planned. You don’t budget for them, but they reduce both profit and cash.

Vinu: How can I quickly control all three types?

Manu: 

Vinu: One final takeaway?

Manu: Profitable businesses don’t only increase sales—they actively manage fixed, variable and hidden costs every month.

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