The Entrepreneur's Guide to Computer Recycling - e-Waste. This ...

Volume 1: Basics for starting up a computer recycling businessc h a p t e r 4COST ANALYSISBBefore launching a business, the entrepreneur must establish a budget,identifying the various costs the company will have to take into account.There are two parts to the budget: a start-up budget, which gives thebreakdown of the one-time costs necessary to set up a recycling centre,and the operating budget, which details the on-going costs of running thecentre. This analysis will also enable the entrepreneur to plan the activityand to establish the prices, in order to be profitable and able to sustain thecentre over the long term.Start-up budgetInvestmentsThe start-up budget comprises all costs necessary to launch an activity.It includes spending related to capital and to the creation of the legalstructure, but also all the expenses and investments essential for theopening of the premises, i.e. renovations, purchase of equipment andfurniture, and guarantees paid to phone and electricity providers.BUILDING THE PROJECT | COST ANALYSISContributions in cash and in kindThe entrepreneur and his partners have several possible ways to contributeto the capital: they may put money into the business thanks to personalloans, microloans, aids and grants. These are contributions in cash. Theentrepreneur and his partners may also provide equipment: vehicles,materials, furniture, premises, etc. These are contributions in kind.Operating budgetThe operating budget includes all recurring expenses, such as rent,salaries, insurance and supplies. In the case of a pilot project of creating29