MooBella Case Study

Categories: Business Case Study

Case study, Pages 2 (282 words)

Views

607

1. What categories of costs would you expect to see in a list of MooBella start-up costs?

The categories of costs I would expect to see in a list of MooBella start-up costs are:
- Owner's salary
- Employee wages and benefits
- Computers, internet, telephone, and other technology
- Promotion, advertising, web site hosting
- Professional services

- Insurance
- Debt service
- Taxes
- Maintenance
- Legal/accounting fees
- Supplies

2. It took nearly 20 years from idea to market for MooBella.

Don't use plagiarized sources. Get your custom essay on

“ MooBella Case Study ”

Get custom paper

NEW! smart matching with writer

Clearly, it had a long development and start-up period. Reflect on the emotional and other nonmonetary factors that were likely involved for Bruce Ginsberg.

MooBella was a seemingly simple concept that was technically complex and cost nearly $85 million in investment capital. Ginsberg was faced with many challenges with the research, development and start-up processes. The machines themselves were very costly, costing approximately $40,000 per machine, and it took 5 years to develop the computer portion alone.

3. What was the mix of funds used by MooBella to get started?

Some of the start-up funding included:
- Saturn Asset Management--$25 million in equity (2000-2005)
- Inventages (Swiss venture firm)--$15 million in 2007 and $18 million in 2009
- Bruce Ginsberg--$1 million
- W Health LP--$9 million (November 2010)
- Debt--$17.5 million in high-interest loans and convertible notes

4. What are the start-up costs that you would expect to encounter if you were a company that purchased a MooBella machine?

I would expect the cost of buying the machine itself, the supplies for the ice cream the machine dispenses, taxes, maintenance, if I buy multiple machines for different locations and hire people to refill and maintain them then employee wages, and debt if I cannot pay out of pocket.