Excellent idea Charles.... >1. Assuming that salaries are being paid (no "entrepreneur mojo" or "sweat >equity") -- My original model showed "OPEX positive" @ 800 customers ($35k >/ month) & a "Profitable ROI tipping->point" @ approximately 1400 customers >($60k / month) -- thoughts? Too high? Too low?
I can't exactly relate because we have a higher ARPU than the numbers that you pitched. We became profitable at about $35k per month, and 250 subs. Interesting, from our observations, the WISPs that became profitable first, were the ones with the fewest number of customers (higher ARPUs). >2. Personally, I think I under-estimated salary expenses -- for example, I >have the main "business / sales" & "networking tech" guy making $40k / year >each -- with the "wisdom" that I've accrued, I >think those salaries would >be more in the range of $60-80k / year -- that would modify the above >numbers to OPEX positive @ 1,000 customers & a "Profitable ROI >tipping-point" @ approximately >1700 customers You did under-estimate salaries for high level techs. However, you over-estimated the need for high level techs. We got profitable, when we got rid of the expensive techs, and instead simplified our network. >3. I don't have a provision for overbuild / massive network upgrades -- >curious -- how many people have been able to stick with the infrastructure >platform they initially selected 5 years ago? Or is it > just a constant >struggle to replace / upgrade / throw out old equipment -- how much would >be a reasonable budget? 10% of total CAPEX? 20% of total CAPEX? Surprisingly, we had zero de-installation of our original equipment. Everything that was installed in 8 years stayed in service, and held its worth and revenue stream tied to it. I have to take my hat off to Trango for that one. We might have had 10 Trango failures in the 8 years, and they were replaced with the same identical models. I will say the last two years after we branched out to more brands, we have had higher rates of failed equipment. The difference is the newer OEM gear gets repaired, not replaced. > 4. In hindsight, knowing what you know now and seeing this model (IMO, I > think we're actually pretty close), would you have gotten into this > business? Any comments? No, I definately would not have gotten into this business. I would have been better off financially, if after I sold my house, I had just stopped working all togeather, and joined a rock band to spend my days a fun. Everything imaginable and unimaginable was against WISPs ever having a chance at success. For some odd reason, WISPs went after the vision anyway, and actually survived. With that said, its been a fun ride, and I have learned a lot and positioned myself well now for success. Its to late to stop, I'm making to much money now. So my point is, being a WISP has shown to be a long term commit business venture. Those that are patient will eventually do very well. I'm more confident than ever, that I'll get an ROI. But it doesn't usually happen overnight. Those that aren't patient will go out of business or be aquired at a loss. But what I am also learning is that there is no better time to be a WISP. Those that have positioned themselves have a brighter future ahead of themselves. I also believe WISPs have now created and proven markets that now make them viable secure candidates to be considered safe and worthy for investment. The reason is times change, the barriers of 8 years ago are not neccesarilly barrers today. The hardest part is over. I just think it ended up needing to be a 10 year business plan, not a 5 year business plan. Tom DeReggi RapidDSL & Wireless, Inc IntAirNet- Fixed Wireless Broadband ----- Original Message ----- From: "Charles Wu (CTI)" <[EMAIL PROTECTED]> To: "WISPA General List" <wireless@wispa.org> Sent: Friday, December 05, 2008 9:18 AM Subject: [WISPA] WISP Business Model -- remember this? All this talk about business models got me to dig through my notes where I found a WISP business model that I (and a bunch of people on one of the list-servs) collaboratively put together back in late 2003 / early 2004...looking at it from a time capsule perspective, I thought it would be interesting to pull it out and share it with everyone to see if these stated "projections" actually held salt See attached In looking at this, I have a few criticism regarding this 1. Assuming that salaries are being paid (no "entrepreneur mojo" or "sweat equity") -- My original model showed "OPEX positive" @ 800 customers ($35k / month) & a "Profitable ROI tipping-point" @ approximately 1400 customers ($60k / month) -- thoughts? Too high? Too low? 2. Personally, I think I under-estimated salary expenses -- for example, I have the main "business / sales" & "networking tech" guy making $40k / year each -- with the "wisdom" that I've accrued, I think those salaries would be more in the range of $60-80k / year -- that would modify the above numbers to OPEX positive @ 1,000 customers & a "Profitable ROI tipping-point" @ approximately 1700 customers 3. I don't have a provision for overbuild / massive network upgrades -- curious -- how many people have been able to stick with the infrastructure platform they initially selected 5 years ago? Or is it just a constant struggle to replace / upgrade / throw out old equipment -- how much would be a reasonable budget? 10% of total CAPEX? 20% of total CAPEX? 4. In hindsight, knowing what you know now and seeing this model (IMO, I think we're actually pretty close), would you have gotten into this business? Any comments? -Charles This message is intended only for the use of the individual or entity to which it is addressed and may contain information that is privileged, confidential and exempt from disclosure under applicable law. If the reader of this message is not the intended recipient, or the employee or agent responsible for delivery of the message to the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. If you have received this communication in error, please notify us immediately by telephone at 630-344-1586. -------------------------------------------------------------------------------- > > > -------------------------------------------------------------------------------- > WISPA Wants You! 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