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

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Entrepreneur’s Guide to Computer RecyclingBa recycling site, conducted by the CFER , the budget was distributed aspresented below.BUILDING THE PROJECT | COST ANALYSISExample of budget distributionThe distribution of costs varies from site to site, but this chart gives arough estimate. It is important for the entrepreneur to assess these costsbefore starting a business, in order to determine the break-even point ofthe company.Running costs30Running costs comprise fixed expenses (administration costs) and variableexpenses (operating costs). Generally, administration costs account for13% to 15% of the global expenses. They include renting costs, standingcharges, telecommunication costs, and a part of the salaries devoted to themanagement of the company. Operating expenses include maintenancecosts, heating and electricity charges, the amortization of equipment, etc.To estimate these costs, the entrepreneur can try to find out what anotherbusiness or organization of a similar size pays. It is best to over-estimatethese costs at first.
Volume 1: Basics for starting up a computer recycling businessCollecting costsExpenses devoted to the collection and transport of equipment account fora large part of the charges borne by the company. However, these expensesvary greatly from one enterprise to the other, as they depend mainly on thetype of supplies, but also on the region, the collection type, the price of fuel,the distance of the collecting round, the volume of material collected, etc.In some cases, there may not be any collecting costs, if clients or partnersbring the equipment directly to the site. Therefore, assessing these costsbefore starting the company is a complex task. It is recommended thesecosts be monitored carefully once the activity is running: the company cansave a substantial amount of money at this level, by optimizing collectingrounds or by renting trucks to reduce fixed expenses, for instance.Labor force and handling costsAdding up all the employees’ monthly salaries is enough to know the globalamount of labor costs. The hardest task for the entrepreneur is to evaluatethe number of employees he needs, according to the production volume ofthe company. For instance, the entrepreneur has to estimate the numberof computers a technician can dismantle in one hour. This ratio goes from4 computers an hour to more than 20, if the technician is competent and isused to working on the same type of equipment.BBUILDING THE PROJECT | COST ANALYSISTreatment costsUsually, refurbishing and dismantling operations generate income whenthe equipment and subsets are resold. However, some components (suchas faulty CRT screens) and polluting residue represent an added cost,since in most cases the enterprise will have to pay a service provider totake care of the collection of this material. The entrepreneur must find themost profitable and environmentally sound way to get rid of this material,in order to reduce the company’s expenses. Before the collecting stage,the entrepreneur should negotiate the logistical and financial managementof the expenses devoted to the final treatment of waste with the client.31
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The purpose of this guidebookis to
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