When running a business, it’s important to understand the difference between Operational Expenditure (OPEX) and Capital Expenditure (CAPEX). OPEX is the money spent on day-to-day operations; this covers things like salaries, utilities, and supplies. CAPEX, on the other hand, is spent on long-term projects and infrastructure; this includes investments in real estate and equipment. These two types of expenditure are both essential for running a successful business: OPEX helps keep daily operations running smoothly, while CAPEX supports longer-term growth.