Financials
Final Version 26/05/2021
REVENUES
ESTIMATED NUMBER OF DIGITAL NOMADS 2021
COSTS
PROFIT AND LOSS STATEMENT
Task 1
Our primary source of revenue would be recurring contributions, i.e. revenue from ongoing payments for ongoing services and after-sales services to customers. This model would ensure the sustainability of the project's revenue stream. The subscription fee for Junto would be 200€ per month. We are also considering increasing this amount depending on the size of the company and the number of destinations we offer.
Junto may also receive commissions when it promotes or sells products and services of co-working, co-living or housing spaces in different cities.
Subscription
We believe that companies are willing to pay their subscription every year according to their satisfaction towards our system.
partnership
We believe that our partnerships will bring commissions into our revenue stream
Task 2
Subscription
Subscription = 200€/month (+variable depending on the number of employees)
partnership
Commission: 10% on the local partnerships
In order to test our prices, we first look to compare with the prices of our competitors whose solution seems to satisfy the customers. In addition, we will now incorporate into our interviews with Managers how much they are willing to pay to help their employees telecommute and become digital nomads.
Task 3
Initial investment
- Coding the software: 18 000€
- Initial sales costs (marketing + website): ourself
fixed costs
- Keep all the info on the cloud: 900€/year
- research for all the cities: 4 workers (outsourcing in India by instance): 300x4x12 = 14 400€ per year
varibale costs
- technical issue, security of the code (software) : 1 outsource: 300x12 = 3 600
- company visits/ prospecting: ourself
- partnership negotiation:
4 000€/city
Task 4
CAC - month 6
Month 6 Acquisition costs = 200h*6€/h
CAC1 = 1800 (200h*6€/h)/15 = 120
CAC - month 12
Month 12 Acquisition costs = 150h*6€/h
CAC2 = 150*6/15 = 60
LTV
Average Revenue per user = 300€/user/month
LTV (life time value) = 300*12 * (1/0,2)= 18000€
Churn
Assuming that our relationship with the customer is going to last for 5 years, we considered the Churn rate of 20%
LTV = ARPU*(1/Churn)
Task 5
Computing all the investment and costs we need for the first year, we would like to have a budget of 40K to start. We decided to do a lot by ourself in order to decrease the amount, but in order to grow in the right pace, we need 40 000€ at the beginning. We are thinking about asking our family to help to invest in order to have control on the shareholders in the first place.