Beep Beep Financials

After our last class we learned how tricky it could be to create  financial projections for Beep Beep Parking. We learned that costs are somewhat easy to identify and predict, but revenues for a new model of business isn't that straight forward.

 After talking about our suppositions and establishing how we wanted our top line to look like we decided our revenue model would be a split one: 85% of our revenue would come from transactions for private spots to park and 15% of our revenue would come form the suscription mode of Beep Beep.

The revenue of transactions will come from an average 4 hour usage with a price of 4 euro per hour. Our comission on each transaction is 10%, giving us an average profit for transaction of 1.6 euros. On the other hand, suscriptions will be priced at 39.99 euros a month. Our costs are estimated at 85% of our revenue, leaving us with 15% profit each year. We estimate a growth of users of 54% for both transactions and subscriptions each year.

The graph explains how our growth would look like for users and revenues for the next 6 years.