I don't know the cost breakdown...just the totals. We had to pay for the first 4 months lease and electricity, the materials for the build out, my labor, my helpers labor, and all of the grow equipment. The total cost was $80,000. One of the collective's members, a good friend of mine, loaned the collective the money for the startup. We has our attorney settup the whole loan note when he settup the "Collective Association". We make payments on the loan just like any other business. We're still "not for profit", which is necessary to stay compliant with California's med marijuana law. The cost of the loan payments as well as all other costs (my labor, wife's labor, trimming labor, growing supplies, lease, power, etc...) is compiled and divided by how many pounds are produced each month to establish a per pound price. So, when the loan is paid back, the cost of medicine to our members will go down.
There's a butt-load of paperwork required each month to keep us compliant. Fortunately, it's perfectly legal to be paid by the collective to generate said paperwork. Nobody gets rich if they're running a LEGAL collective. You can make a decent living, though, being paid for time spent on the grow. I recieve an IRS 1099 form from the collective for the money paid to me. I'll pay taxes on that as "non-employment compensation". As the industry moves forward and evolves, it will probablt be necessary to place all collective workers on payroll. For now, our lawyer is comfortable with 1099's.