Meeting 6.0: 27.05.2015

The PickUsUp team had a final meeting of discussing important content on May 27th.

During these last days, we complemented all the qualitative work that we had done for PickUsUp so far with quantitative work in the form of financial reporting, involving the disclosure of financial information relating to our expectations for the performance of the start-up in its first years of business. Since we are a start-up, we should not be too worried about negative results of our calculations in terms of net income in the first years since we have to consider high expenditures for advertising, promotional activities, technology development as well as employee training (called start-up expenses or pre-opening expenses).

After calculating expected user numbers, from which we could deduct expected revenues for the first three years of business, we calculated our expected costs and ended up with the EBITDA.

Eventually, we had to consolidate all of the various numbers in the balance sheet, the income statement as well as the cash flow statement which were calculated for year 1 to year 3 of the business.

The process of calculating all of the numbers is based on a variety of assumptions and –especially in the cases of start-ups- these assumptions are crucial, however they may be wrong and the company may develop into an entirely different direction. When setting up our financial statements, we had to deal with some challenges since our company only offers a service and we therefore do not have any real investments into property, plants or large equipment. Thereby, we learnt to apply our reporting knowledge in a real environment and how to deal with daily problems that may arise in a reporting environment.

You can see our financial reporting results here.