Financial Calculations

 

In order to set up a balance sheet, income statement as well as cash flow statement for our final pitch, we had to conduct some calculations to determine reasonable numbers.

 

Potential Users
The financial performance of the company is based on the expected number of users for our service. We tried to determine this number by combining the total population in our target area with numbers for car usage as well as alcohol usage to arrive at a number for potentital user of 17.500 in the first year of service. We expect a customer conversion rate of 7% in this year and would thereby reach 1200 expected users in year 1. For the following years, we expected this conversion rate to grow by 7%. Considering the expansion of our target area, we will thereby reach 2200 potential users in year 2 and 4400 in year 3.

 

Revenue Calculation

Based on the number of potential users calculated above, we will calculate our expected revenue by combining it with the average number of uses of the PickUsUp service per year, which we expect to increase from 4 to 6 from year 1 to year 3, as well as the average distance covered in each trip which will also increase due to the higher reach of our service (from 8 to 13km). Since we offer our service at a normal fare as well as a student fare (10% discount), we had to consider the share of customers paying the normal fare and those paying the student fare. We assume a price of 1,70 per km as a normal fare and 1,53 per km for students. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Calculations

In order to determine when our start-up would be profitable, we had to calculate the costs caused by offering our service. The main cost drivers can be determined as the rent of the scooters, the payment to our drivers (who are employeed as freelancers in order to reduce fix costs) as well as the high marketing expenditure of 30.000€ per year.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The most critical assumptions for our success are reaching the number of potential clients during our first three years of service as well as being able to be competitive with the rent and the wage for the drivers that we assumed. 

 

Our assumptions lead us to the following numbers:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Below, the balance sheet as well as the income statement and the cash flow statement can be seen including all relevant data:

 

Balance Sheet

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Statement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Flow Statement