Cost of Business

Other day I listed our initial requirements, today let me put some prices on each one of those and come up with working capital requirements.

Please note: This list is by no means complete, but it covers most of the expenses and working capital requirements. Employee salaries, benefits, equipment prices are very close to real costs but may vary from place to place.

All calculations are for one year. Approximately $1 million outlay of funds is required for the comfortable operation of this business.

AssetUnitsCost/UnitTotal Cost
Equipment
RFID Tags100$1$100
RFID Readers20$350$7,000
Wi-Fi Stations4$500$2,000
GPS Sets4$250$1,000
Personal Computers10$2,000$20,000
Vehicles (used)4$3,500$14,000
Staff
Software Engineers5$80,000$400,000
Hardware Engineers3$70,000$210,000
Marketing Consultants5$60,000$300,000
Application Consultants5$70,000$350,000
Office Staff3$30,000$90,000
Space, etcetra
Office Space1$120,000$120,000
Test Area1$60,000$60,000
Fax Machine1$250$250
Copier-cum-printer1$10,000$10,000
Phone System1$20,000$20,000
Personal Computers4$2,000$8,000
Consumables
Toners & Cartridges12$200$1,200
Stationery12$200$1,200
Maintenance
Office - Janitorial services12$500$6,000
Phone System12$250$3,000
Copier12$250$3,000
Miscellaneous
Employee Benefits21$20,000$420,000
Taxes12$5,000$60,000

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