pwer? "power cycle" their router! On Tue, Jan 6, 2015 at 6:20 PM, Jeremy <jeremysmi...@gmail.com> wrote:
> Yeah, seriously though. Cash flow statement is essential. MOST WISPs > fail within three years because they don't make it to cash flow positive > before they run out of operating capital. Do not underestimate your > expenses. Track everything. TRAIN YOUR CUSTOMERS. If you have overages, > bandwidth limitations, ect. let them know up front. Tell every customer to > pwer their router if they don't have Internet (show them how), THEN call > you if that doesn't work. This will save close to 90% of your calls. > > On Tue, Jan 6, 2015 at 6:13 PM, Ken Hohhof <af...@kwisp.com> wrote: > >> Not totally joking. Undercapitalization is a major mistake of most >> startups including WISPs. You need money to make money. >> >> Make a month-by-month plan for your first 2 years and do a cashflow >> spreadsheet. Set targets for how many installs you plan to do each month, >> how much you revenue you will generate, how much you need to spend on >> equipment and recurring expenses. Set milestones for when you can fund >> growth from cashflow, when you have repaid your initial investment or >> loans, when you need to add staff and will the money be there, etc. Review >> progress each month and adjust as necessary. But this will help you avoid >> being underfunded to achieve your goals, or not reaching profitability in a >> reasonable timeframe. It’s too easy starting out to use a simple >> calculation like I’m paying $500/month for bandwidth and I charge $50 so >> once I get to 10 customers I’m profitable. Then a year later you’re at 100 >> customers which seems like success, but you have maxed out your credit >> cards and aren’t drawing a salary and can’t hire a full time installer, and >> you need major network upgrades and don’t have the cash. >> >> Also while you don’t need to budget every penny, you need realistic >> estimates of all your costs, not just the big, obvious ones. Like assuming >> you take credit cards, some of the revenue will go to processing fees and >> “discount”. You will have some bad debt from customers who don’t pay, and >> you will have some churn if only because people move, get divorced, and >> die. You will go through supplies like cable and hardware for >> installations, and you will spend a certain amount on maintenance. You >> will have costs like insurance and lawyers and accountants and postage and >> utilities. At least come up with a rough number for these, and refine >> based on experience. >> >> If you use your own vehicle, at least pay yourself the IRS standard >> amount for mileage. >> >> Find another WISP nearby and make an arrangement to cover for each other >> in case of sickness or just so you can get away for a few days. >> >> Decide what your business hours are and how to handle calls outside >> business hours. Also decide on a way to notify customers if you have a >> major outage so you aren’t answering the phone when you should be working >> on a problem. For example, a message on your voicemail. >> >> Train your customers from day one. For example, let calls go to >> voicemail after hours and call them back, or they will assume they can call >> any time of day or night. Or if you say you will suspend service when >> payment is X days late, do it. If they never get to expecting things, they >> won’t be pissed off when you take them away. Like Trevor used to answer >> his cellphone at all hours, now I have to call the office and leave a >> message. Or the service has really gone downhill, I used to get 20 meg >> speeds now I only get 10 (even though they are on a 5 meg plan). Or I used >> to wait 3 months and then pay up, now if I’m 5 days late, they cut me off. >> Better to set their expectations early. >> >> >> *From:* Jeremy <jeremysmi...@gmail.com> >> *Sent:* Tuesday, January 06, 2015 6:34 PM >> *To:* af@afmug.com >> *Subject:* Re: [AFMUG] New WISP >> >> >> Have a million dollars. Cash. >> On Jan 6, 2015 5:23 PM, "Josh Luthman" <j...@imaginenetworksllc.com> >> wrote: >> >>> Get a billing system. Powercode or whatever. >>> >>> Don't finance customers that can't pay up front, wastes billing time >>> instead of installing more customers. >>> >>> Don't use your cell phone for the office. Get a hosted PBX. Close the >>> shop so you don't get burnt out, have other people and or a call center. >>> >>> Josh Luthman >>> Office: 937-552-2340 >>> Direct: 937-552-2343 >>> 1100 Wayne St >>> Suite 1337 >>> Troy, OH 45373 >>> On Jan 6, 2015 7:21 PM, "Trevor Bough" <trevorbo...@gmail.com> wrote: >>> >>>> Hi guys, long time listener, first time caller. I'm looking at starting >>>> a new rural WISP and was wondering if you guys could share some of the >>>> things you wish you had known when you started out. Things to absolutely >>>> stay away from, things that you didn't think of first, but made your life >>>> 10x easier, etc. Any info would be greatly appreciated! >>>> >>> >
