Thirty years in facilities gives me a pretty good idea along with a construction background. I believe millions will be needed.
Some issues to consider:
Capital costs
- Building construction - Facilities (water, fuel, insect proofing) - Processing equipment - Packaging equipment - Distribution - Working capital
If a loan is used to raise part or all of the capital this will result in repayments to the lending agency which will include the interest that is charged on the loan. These repayments are treated as a fixed operating cost below.
Operating costs - fixed
- Loan repayment - Labor - Rent on building - Business registration tax and licenses - Equipment depreciation
Operating costs
- variable - Packaging materials - Food ingredients - Labor - Fuel and power - Distribution costs
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