ABOUT FINANCE...

Identification of fixed and variable costs

Identifying costs has been a crucial part of our project. We have made some previous studies to pre-define the success or viability of our business in the economic field, based on the initial expenses or costs that we would have during the first year of life of the business, taking into account the initial investment contributed by each of the partners that make up our company.

As the rest of the companies in the sector, we have very present a selection of both fixed costs and variable costs, which will change depending on the moment in which the activity takes place.

Until we did not get to make the general budget of the company, we could not get to know with certainty, which of them, would be fixed or variable.

Economic viability

The economic viability for us is crucial to determine the potential of our business project. To determine the viability of the company it is necessary to analyze the technical, economic and commercial aspects in order to assess the return on investment.

One of our main objectives is not only to satisfy the needs of our customers or even solve problems; we also intend that our project has a long life in order to continue progressing and improving our business.

Benefits

After carrying out a study of the economic viability of our company, the benefits we want to achieve are not only at an economic level. We intend, then:

• To achieve a greater control in the management.

• A decrease in uncertainty. That is to say, to obtain a realistic vision on the profitability that we have.

• Improve business and functional operability, since this will allow us to have an economic forecast of the project.

• Determine the price of the product and service. By having knowledge about the specific expenses and income, it will be possible to adjust the market price that will be offered to customers.

Types of financing we have opted for:

Like any business, initially, we have provided our own capital, thanks to each of the partners that make up this company: both with material goods and economic resources. We are a total of 5 partners, each one contributing an amount of 100.000€.

On the other hand, we also have a part of external funding, which comes from:

• a "CROWDFUNDING" reward that brings us 10.000€,

• a "BUSSINESS ANGELS" that provides us with 30.000€.

• a long-term bank loan of €100,251.

• a Confirming of 20.000€.