Financial models
Two models that calculate right here: an Arctic coffee shop and a recording studio. Plus a series of investment passports for the region. Move the sliders and the numbers recalculate using the same formulas as the source models.
Coffee shop
Coffee shop in the Arctic
An investment pitch prepared for the client: bring a speciality coffee chain to Anadyr. No chain competitor in the speciality segment was found at the time of the analysis, and a package of state support is available. Formulas from the financial model: average bill 400 roubles, cost of goods 100 roubles, royalty 7.8%. Move the traffic:
Formulas
| Orders per month | |
|---|---|
| Revenue | |
| Cost of goods | |
| Gross profit | |
| Barista payroll | |
| Chain royalty | |
| Rent | |
| Other | |
| Net profit per month | |
| Capex | |
| Payback period |
| Margin per cup | |
|---|---|
| Break-even point | |
| Net margin |
| Pessimistic | Realistic | Optimistic | |
|---|---|---|---|
| Customers per day | |||
| Revenue per month | |||
| Net profit | |||
| Payback |
Studio
Recording studio: budget against the estimate
The project estimate is 9,370,310 roubles. Choose the investor budget and the model returns a verdict: enough to launch or not.
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Formulas
| Project estimate | |
|---|---|
| Your budget | |
| Difference |
| Renovation and infrastructure | |
|---|---|
| Studio equipment | |
| Studio A | |
| Studio B |
| Cautious | Base | With reserve | |
|---|---|---|---|
| Budget | |||
| Difference from estimate | |||
| Enough to launch |
| Reinvest | 60% dividends | 40% dividends | |
|---|---|---|---|
| Paid to the owner | 0% | 60% | 40% |
| Payback, months | 11 | 15 | 19 |
Why the project pivoted
In the model everything adds up: gross margin on services comes out at 80-86% and payback at 11-19 months. But everything rests on one risk: 9.4 million roubles only come back if the studio is consistently busy, and steady demand cannot be guaranteed in a saturated offline market. Walls, equipment and rent are fixed costs that accrue whether an artist comes or not. The decision was strategic: stay in the music industry but switch to a far less capital-intensive model, because software scales without walls. That conclusion led to the music-tech platform.
Investment niches of the region
The coffee shop is one case from the Investment Niches series of the Government of Chukotka. Each niche has a ready investment passport: description, market and competition analysis, target audience, cost estimate, financial model and state support measures. All files can be downloaded.