Moobella, Inc.

Topics: Cost, Costs, Vending machine Pages: 2 (535 words) Published: August 12, 2012
Case 4.1 Analysis – Critical Thinking Exercise

A Cool Business—MooBella, Inc.

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

The categories of costs that I would expect to see in a list of MooBella start-up costs are as follows: -Equipment, furniture, and fixtures
-Leasehold improvements
-Installation of equipment and fixtures
-Computers and other technology
-Owner time
-Professional services
-Promotion and advertising
-Debt service
-Franchise fees
-Supplies /products cost per machine
-Wages and benefits

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

One critical component of getting an accurate startup cost estimate is to determine the length of time it's going to take you to open your startup business. MooBella had almost taken 20 years for the idea to market and develop. Even though it seemed to be a simple concept it was technically complex and nearly cost the company $85 million to bring to market. There were so many challenges with the research, development and start-up processes. The machines were very costly and it took 5 years to complete the computer portion of the project. Under Bruce Ginsberg's leadership, the Company's technology transitioned from a research & development project into a marketable product. During this time, Mr. Ginsberg oversaw the implementation of the MooBella brand, and the solicitation of consumer feedback. Mr. Ginsberg’s dream was to create made-to-order hard-pack ice cream that had an excellent flavor and texture. It was all about the freshness. He put his own money up to start the business and carried his reputation and 30 plus years of experience with him to the development of this company.

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