Session 5: 

OPERATING EXPENSE BUDGETING (OPEX)

Timestamps

2:17 – Understanding utility expenses: Electrical, CO2, Water, Heat/HVAC

4:17 – A closer look at labor costs

6:37 – Administrative and management expenses

7:25 – Completing the Operating Expense tab

12:17 – Wrap up

Financial Worksheet – Utilities Tab

Financial Worksheet – OpEx Tab

Financial Worksheet – Labor Tab

Financial Worksheet – Loan Tab

Action Items

  • View tutorial videos: Utilities tab, Labor tab, and OpEx tab.
  • View the OpEx tab. No action is required. Your OpEx is based on:
    • Utility costs – Size and square footage of the farm; number of ZipGrow Racks; number of lights, etc (Intro Tab)
    • Labor costs – Size and square footage of the farm; number of ZipGrow Racks; percentage of herbs to greens, etc. (Intro Tab and Revenue tab) Assumptions are shown on the Labor tab.
    • Costs of Goods Sold (COGS) – Nutrients, Seeds, Plugs, Packaging and other misc expenses.