Finance Venture Planning

Finance Venture Planning


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

Every business has its own different cash needs at each and every stage of its development .Some business require considerable investments on equipments or inventory while others can be started on a shoestring budget (Sedláček & Sterk, 2017). It is important for individuals to know the amount of money enough, before launching a business venture. MooBella revolutionized a new importance of the vending machine by giving their customers an opportunity to walk up to the machine and select one of the best flavors among the 96 available ones (Ginsberg, 2010). In about forty seconds they had a 4.5 ounce carton of ice cream for measly three dollars. Due to the long process of development a significant amount of startup costs would be needed. The most anticipated category of costs for MooBella start-ups include; owner’s salary, loans, maintenance services, taxes, promotions (marketing, advertising and web), employee benefits, insurance, professional services, license, machine, supplies, dept service, installation and legal fees.

  1. It took nearly 20 years from idea to market for MooBella. Clearly, this is a long development and start-up period. Reflect on the emotional and other nonmonetary factors that were likely involved for Ginsberg.

MooBella was created by Bruce Ginsberg out of excitement after seeing the idea of Turbo Dynamix. He became closer when Turbo Dynamix became MooBella which changed the R & D project into a marketable one. Ginsberg was not associated with the idea of the vending machine but he can take credit for the implantation of the machine. For over thirty years the life of Ginsberg has been surrounded by ice-cream and ways of making it profitable (Ginsberg, 2010). One of the biggest non-monetary factors that influenced Ginsberg was to create MooBella out of his love for ice-cream. Thus, when the risk for failure rose, Ginsberg was willing to put his reputation and money aside and cater for the needs of his customers. Many challenges were encountered during research, the startup process and development. MooBella was apparently an easy concept but technically it was costly with about 85 million dollars in investment capital (Wittern Jr & Parle, 2016). The machines were also expensive and it took them five years for the completion of the first project of computer portion. They cost roughly 40, 000 dollars per year or 400 dollars if lease monthly and took five years for development of the computer part alone.

Under the leadership of Ginsberg, the technology of the company oversaw the solicitation of consumer feedback. With a lengthy startup period, Ginsberg had an emotional affection to the invention. The idea was not for his own advancements, it originated from his grounds and aspirations in the industry of ice-cream (Solano et al., 2017). Growing up, Ginsberg assumed that customers could be provided with ice-cream in its freshest form, to enhance limpidness and sweetness. Therefore, with his more than thirty years experience, he decided to use his money to develop a company that became a success and one of the most famous in the New England.

  1. What was the mix of funds—by percentage—used by MooBella to get started?

While the team pursued product development, investments were important to keep the business afloat. MooBella’s startup investments totaled about 85 million dollars since 2000.With the help of a few investors, MooBella used some mixed funds to get started (Ginsberg, 2010). Between 2000 and 2005, the company used approximately 25 million dollars on Saturn investment which was 24.4% of the company. In 2007 MooBella used 15 million dollars on inventages being 16.65% and 18 million dollars in 2009 which was 21.18%. Bruce Ginsberg cost about 1 million dollars being 1.2%while W Health LP amounted to about 9 million dollars in November 2010 amounting to 10.56%.Finally Debt cost 17.5 million dollars being 20.6% in convertible and high interest loans. Bruce Ginsberg owned about 5% of the company with other external investments. A greater part of MooBella was controlled by Inventages.

  1. What start-up costs would you expect to encounter if you were a college that leased a MooBella machine?

To determine the startup costs, individuals need to select all the expenses that might incur during the startup phase of a business. Some expenses will be one-time while others will be ongoing. After identifying the costs it is crucial to decide whether some expenses are optional or essential. The startup costs can be calculated through the use of worksheets listing all categories of costs needed to be estimated before starting the business (Sedláček & Sterk, 2017). If I were a collage that leased a MooBella machine, the expected startups costs would be lease payment of about 400 dollars per month, supplies for ice-cream, employee wages, utility expense, taxes, machine dispenses, license and ingredients. I would be more concerned with on the costs of sales and customer satisfaction. Since most college students love ice-cream, inside the school would be the right location such that students can purchase the ice-cream at any time.

Most vending machines owners grow their business operations over time. They normally as a part-time business, then get more vending locations and machines with the growth of their profits (Ramzan, Rehman, & Perwaiz, 2017). Since a MooBella machine does not need workers or any other expensive overhead, there is a significant elimination of wages and benefits. The costs for marketing campaign around the university and establishing a website is also expected since the business needs to be known by the students. The contemporary college students are frequent internet users, hence marketing the company online would be effective in attracting the customers.


Solano, A., Duro, N., Dormido, R., & González, P. (2017). Smart vending machines in the era of internet of things. Future Generation Computer Systems76, 215-220.

Sedláček, P., & Sterk, V. (2017). The growth potential of startups over the business cycle. American Economic Review107(10), 3182-3210.

Ginsberg, B. (2010). A Scoop Of Genius: Ice Cream Vending Machines. Retrieved 6 August 2019, from

Wittern Jr, F. A., & Parle, G. J. (2016). U.S. Patent No. 9,373,210. Washington, DC: U.S. Patent and Trademark Office.

Ramzan, A., Rehman, S., & Perwaiz, A. (2017, April). RFID technology: Beyond cash-based methods in vending machine. In 2017 2nd International Conference on Control and Robotics Engineering (ICCRE) (pp. 189-193). IEEE.


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