FINANCIAL MODEL 1

TABLE OF CONTENTS
1. INTRODUCTION....................................................................................................................2
2. MARKETING COST...............................................................................................................3
3. OFFICE COIST........................................................................................................................4
4. STAFF COST...........................................................................................................................5
5. ESTIMATED GROWTH.........................................................................................................6
6. PREDICT REVENUES...........................................................................................................7
7. OVERVIEW.............................................................................................................................7
8. BUSINESS MODEL................................................................................................................7
9. REFERENCE...........................................................................................................................7
FINANCIAL MODEL 2

1. INTRODUCTION

The main purpose of this paper is to research about firm and describe the financial model. The
name of firm is CLOOSIVE and the headquarter located in “Charlotte, North Carolina, United
States”. The name of founder is Mr. Tim Griffin and co-founder Paul Graham, Roger Dickey
(Founder and former CEO of Gigster), Avichal Garg (former Facebook Director of Product
Management), Ken Deeter, Brad Powers (CTO of Passport), and John Kim (co-founder of the
chat API company SendBird).

CLOOSIV currently has around 315 locations using the platform, and they’re expecting to pass
500 by the end of this year.

Furthermore, The CLOOSIV with mobile ordering making up at least 13% of Starbucks’
transactions in the US last year, this space is heating up. A competing platform out of Seattle, Joe
Coffee, announced just a few months back that it had raised $750k (bringing its total raised to
around $1.7M) with plans to expand its network to other major cities.

While Cloosiv merchants currently receive orders through the standalone Cloosiv app, the next
step for the company is integrating orders into the point-of-sales apps many merchants are
already using — like Clover, Micros, and Square. Griffin tells me a partnership with Square is
already in the works, with integration into the Square point-of-sales app “close.”

1.2 COMPANY COST

Furthermore, the COOLSIV few months back we took a look at Cloosiv, a company aiming to
provide smaller coffee shops a mobile ordering solution that can compete with those of the mega
coffee chains.

Most coffee shops want to be able to offer mobile ordering — but apps are tough to build and
maintain, and users don’t want to install an app for a coffee shop they might only visit once or
twice.
FINANCIAL MODEL 3

Instead, CLOOSIV’S approach is to build one big network of coffee shops all under the same
app roof. Open up Cloosiv, and up pops a list of nearby, Cloosiv-enabled shops. Tap into any of
the shops, and you’ll get a mobile ordering experience not unlike what you’ll find at the huge
name competitors-with things like order history, item customization, and tipping all
incorporated. Cloosiv charges merchants a percentage off each order, with the percentage
decreasing as order volume goes up.

2. MARKETING COST

Moreover, scholar is said that the “marketing department” plays a vital role in promoting the

business and help to achieve the mission of an organization. Furthermore, It is
the marketing department's responsibility to reach out to prospects, customers, investors and/or
the community, while creating an overarching image that represents your company in a positive
light[ CITATION Jam192 \l 1033 ] . The researcher said that the “business marketing” is a marketing
activity of the company or organizations. In the business marketing to allows them to sell
products or services to other companies or organizations that resell them, use them in their
products or services or use them to support their works. It is a way to promote business and
improve profit too.[ CITATION AAM20 \l 1033 ]. The company should have a good and valid
information about the customers.[ CITATION Jac191 \l 1033 ] . This companies needs to more invest
on the marketing area and create awareness in the targeted population and area. The firm needs
to a good marketing strategy for to attract the customers and buyers. But this is when possible we
have to a good research[ CITATION Jac191 \l 1033 ]

Furthermore, the COOLSIV firm need to use different sources for the marketing like, social
media platform, (Facebook, YouTube, Instagram), word of mouth marketing, banners in the
main stop, events, and one thing is give discount to the customers. The main purpose of
marketing is to create the awareness and buildup trust between the customers and company. With
help of marketing strategy company will be achieved the competitive advantages[ CITATION
Kra181 \l 1033 ] According to the Financial model the CLOOSIV firm has to spend the in the first
year,€ 285,000, second year € 450,707, in third year € 871,044, in fourth year € 1,857,406 and in the
fifth year € 5,691,669. The total amount for marketing department is € 9,155,828.
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According to the firm mission and vision company need to more focus on the marketing area and
create an awareness of online coffee to purchase.

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COST OF MARKETING ADERVTIMENT AWARDS TOTAL

3. OFFICE COST

Furthermore, an office is the center point of organization. The office is the brain of a whole
organization. The office performs a clerical function such as information collection, recording
analyzing, distribution of information and executive function such as planning, policies
formulation, organization, decision making etc.[ CITATION Jon19 \l 1033 ] The main purpose of
an office environment is to support its occupants in performing their jobs. These workers usually
occupy set areas within the office building, and usually are provided with desks, PCs, tablets and
other equipment they may need within these areas [ CITATION Qur17 \l 1033 ] . The CLOOSIV firm
is also need to good hardware and updated software for the work like company needs good
hardware to be able to run programs smoothly and be able to work efficiently. The firm give high
technology tablets to the delivery boy for track the location of the customers. The main business
of CLOOSIV is offer to online coffee service firm so need to use good machinery and will hire
good experience worker. The firm must be updating their application. The Firm must be hired a
professional, different language understand staff and good communication skill staff for to get
the order. According to financial model, in the first year the office expense is € 215,346, the
FINANCIAL MODEL 5

second year € 532,598.43, in third year € 946,717 in fourth year € 1,852,251and in the fifth year
€ 6,172,897. The firm need to update the application for to customer and who easily book the
order. The costs for technology will raise each year with around 55% as the technology gets
more advanced and servers have to scale up.

According to the financial model the costs for the office (furniture, supplies, rent) increases as
the amount of employees goes up. It would cost roughly 600 euros per person per month
according to Alan Bernier, co-founder and

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OFFFICE TOOL AND INSTRUMENT OFFICE FURNITURE $ COMPUTER LAB

OTHER EXPENCE Technology Expenses
TOTAL

4. STAFF COST

Furthermore, in this part, as we know that the firms have to need skilled and well-trained staff to
run a business. In the starting firm has 14 employee and time by time increase the number
employees. According to the financial model and the business nature firm has to need more
worker and well trained for to run the business. Firm to have paid per month salaries to their staff
and the highest salary range is of Executive €3000 and the lowest salary range of delivery Staff
is €500. According to the financial model, the company has to needs paid in the first year
€39,269, in the second €45,457, in third year € 51,731, in fourth year, 59,645 and in the fifth
year € 66,669. A year and the fifth year. This amount is increased year by year because the
company will expand and increase their business in different locations and cities so need to more
FINANCIAL MODEL 6

staff and worker. Furthermore, this amount is also explained in the monthly data part of the
Financial model.

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5. ESTIMATED GROWTH

Moreover, the scholars are given the other is Looking Forward: because company think about
the future profit and business. Estimating Growth. The Value of A Firm Is The Present Value Of
Expected Future Cash Flows Generated By The Firm. The Most Critical Input in Valuation,
Especially for High Growth Firms, is the growth rate to use to forecast future revenues and
earnings[ CITATION Kri18 \l 1033 ]. According to this part of the financial model, we estimate the
growth rate of the company based on past data and calculations. The research said that when
thinking about a new startup or business, so you need to first analyze the market and some kind
of data analysis. After you easily understand the growth rate and company performance. In this
graph, the company is a move profit side, not loss side in the first year company growth rate is
€360,081, in the second year €429,669, in the next year €502,338, in the fourth year 577,654 and
the last year 655,093. And also, in the financial model growth rate also discussed by monthly.
This figure and amount is accurate and database.
FINANCIAL MODEL 7

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6. PREDICT REVENUES
In simple words, the company forecasts its future review with help of previous data, figures, and
multiply with the growth rate. In this section, the company wants to see their performance in the
coming time or see their position of profit in the next five years. But this process also depends on
the buyers because buyers increase the profit increase. So here the company will expand its
business in different cities and other countries, then automatically revenue will increase. In the
financial model, we have estimated revenue in 2019 is 756,911, in 2020 889,053, in 2021
1024614, in 2022 1163776 in 2023 1308795. All figures are based on buyer numbers and
growth rates
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Chart Title
1200000

1000000

800000

600000

400000

200000

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7. OVERVIEW
According to the requirements of projects and the business methods, we have discussed different
areas of the company with the help of a graph and all the table is based on accurate data. We
have attached the table of the total cost, predicted revenue, profit l, net present value, and then
check the company performance. According to the startup company owner and investors have
seen the most taught situation and get huge losses in the past time. Because this is basic rules and
we called this is the nature of business. Because of every business in starting time you have to
give loss because it's on the starting level and then slowly business will grow up.

This company depends on the buyers and customers if the company will succeed in increasing
the customer level so he will succeed. According to the results, I said that. At the starting time
company's investment of €3000000 to run the business and slowly he will succeed in their
business.

8. BUSINESS MODEL

A business model is a company's core strategy for profitably doing business. Models generally

include information like products or services the business plans to sell, target markets, and any
FINANCIAL MODEL 9

anticipated expenses[CITATION Kra19 \l 1033 ]. The best solution for CLOOSIV is to create
“research and development department” for collect the new data according to the business
nature. According to the financial model company of financial performance is to increase year by
year.

Company need to more invest on the marketing department and use different platform for more
create the awareness. And the most important thing is to company had to deal with business
institutions, worker organizations and banks for provide their service with discount.

REFERENCE
References
AAM. (2020, January ). American Marketing Associations. Retrieved from
https://www.ama.org/the-definition-of-marketing-what-is-marketing/

Jack, K. a. (2018). The role of estimate growth rate on the business performances . Journal
Business Management , 33-45.

Jacky. (2019). Impact of marketing on the brand . Journal of Market , 34--36.

Jonathon. (2019). The Role of office in business . Journal of Human Resource Managements ,
22-45.

Kramer. (2018). The impact of marketing on customer satisfaictaion . Journal of marketing , 55-
57.

Kramer, J. (2019). The role of business model in the success. Journals of Managerial
Accounting, 33-35.

Qurora. (2017). The role of office enviornment in the success of organization . The Journal of
Human Resources Managements , 22-34.

Smith, J. (2019). The role of marketing in the company success. Journal of Marketing, 45-56.
FINANCIAL MODEL 10