We are in the process of starting a small business (the process will take two years) supplying specialised integrated pest management (IPM) services to the agricultural industry. I am looking into ways determining the price of our services taking into account all our cost. We will be in business incubation for two years, using specialised equipment (microscope etc.) which will be supplied to us during the incubation period. However, after the two or three years we are going to need to buy equipment of our own. I was wondering how can I first calculate the replacement cost over two years of the equipment and incorporate that into the price of our service - which will then after two/three years give us enough capital to buy our own equipment when we leave incubation. Is there any formula that I can use. I am new to accounting and business.
Any ideas regarding this will be much appreciated.
Kind Regards
Gulu
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