Awesome post Tom, to bad many folks won't get the meaning of it. It goes
along with the old belief "I bought it because it's a tax write off". In my
book if you can't write it off dollar for dollar spent you just wasted
money. If you only get a 30% write off then you just wasted 70% of the money
you spent. Now if you needed the item anyway then that's OK, but how many
folks will buy the new service truck because they need the write
off...............I just love that one. I'd rather pay the 30% tax and keep
the other 70% in my pocket, but what do I know.

Thank You,
Brian Webster <>

-----Original Message-----
From: Tom DeReggi [mailto:[EMAIL PROTECTED]
Sent: Tuesday, October 17, 2006 6:59 PM
To: WISPA General List
Subject: Re: [WISPA] Are you making money?

The problem with Leasing, is that you ahve to keep your clients longer than
your leases.
Historically, WISPs make logrithmic growth with each year having more growth
than the year before.
Usually the profit from old business (subs with paid off leases), rarely
covers costs of growth, as the growth in later years is so much grander.
Sure leasing helps growth and makes the books look good.  But what happens
in your last year? The one where you potentially could loose all your subs?
The year that you just had your largest growth, and largest amount of
dollars on Leases for reoccuring liabilities.  Will your business then last
3 more years to pay off those leases?
The problem with Finance, is it gives people a fake sense of success, and
while deferring payment, it allows upfront moneys to be spent more
wastefully because it is there to spend.
There is always a grand plan of how that money will be used to improve
business, but do things always work the way they are planned, and do you
ghet your money's worth? There is something to be said for the business man
that believes in old fasion values of a dollar earned and a dollar that can
be spent, apposed to spending tommorrows dollar today and deferring todays
liabilties to tommorrow.  It order not to loose your butt leasing, one must
predict accurately the date of their end came, so they know when the leases
have to be paid off.
What if you aren't bought, as predicted at the end game? One of the things
I've learned is that when you are eating fat (money available), people get
lazy.  When you are hungry and wondering how you are going to pay
tommorrow's bill, all a sudden their is an urgency to succeed that not only
is urgent but essential. Its amazing what a person can accomplish when they
are backed against the wall and have no choice but to do it. Its amazing how
much someone can save when they ahve a tight budget to conform to, and they
know when the money is gone the money is gone.  Wether it makes sense to
lease is not the golden question. The golden question is, how will you spend
the money that becomes available because you leased.  That is what will
seperate the winners from the loosers.

One of the most basic concepts there is in accounting is, its much more
beneficial to reduce your costs $100, than to make $100 more income, because
the $100 income have additional costs that grow with it.  I think leasing
makes sense if you get good terms, and are short on cash flow, but if you
are not frugal in spending along the way, one is just deffering their death
by leasing.

Whats important is that the money spent, has something tangible and of value
(holds its value on a reoccuring basis).  Things like high salaries that are
spent and gone, or technology greater than one's need in a business with
falling prices and rapid advancement, are monies spent that have little
value after the fact.

Disclaimer, this comment does not negate the importance to determine the
amount of capitol (cash) that will be needed and securing it before
progressing with a business plan.

Tom DeReggi
RapidDSL & Wireless, Inc
IntAirNet- Fixed Wireless Broadband

----- Original Message -----
From: "Rick Smith" <[EMAIL PROTECTED]>
To: "'WISPA General List'" <>
Sent: Tuesday, October 17, 2006 3:48 PM
Subject: RE: [WISPA] Are you making money?

> exactly the mistake my company made.  Shoulda, woulda, coulda leased...
> 'cept in NJ, it's $125 contract labor, and $244 for installation (199
> install / 45 first month), oh and no free towers, they're all (16 of them)
> $500 / month / each at LEAST....
> No free lunch.  So to answer the previous question #3, no you will not be
> making tons of money - you will be eating your shirt :)
> -----Original Message-----
> Behalf Of Travis Johnson
> Sent: Tuesday, October 17, 2006 3:24 PM
> To: WISPA General List
> Subject: Re: [WISPA] Are you making money?
> Hi,
> Although he has spent some time and efforts, many of his numbers are WAY
> off:
> $50 installs (contract labor)
> customers paying $360 for installation
> $40 per month ARPU (for a startup WISP is not realistic today with $15
> DSL)
> Just taking the installation numbers away completely changes this sheet...
> we are doing $99 installs and include a free Linksys wireless
> firewall/router. So now instead of making $15 per install, he will be
> losing
> $246. So now after 2 years, the company is making $11,736 per month profit
> but still shows $42,000 in debt (from the first 2 years) and hasn't paid
> anything back to the investors, banks, etc.
> Now, if you use the same sheet, lease the CPE ($5/mo per customer) and
> still
> buy the Linksys router for $40, the company is making $18,800 per month
> profit and has $98,000 in cash after 2 years. ;)
> Travis
> Microserv
> Brian Rohrbacher wrote:
>> I have not got to the spreadsheet, but the post was well worth the 5
>> minute read, and I'm looking forward to getting some numbers down on
>> the spreadsheet.  I think this could help some of us.
>> Brian
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