|
What
did it take in time and money for RSMC to develop Budget-Master.com as a business? (All are
rough estimates)
| ||||||
|
Purpose
|
Why?
|
Hours
by RSMC |
Hours
by Others |
Vendor1
|
Cost
To-date $US
|
Is
it Done?
|
| Concept | Solve a personal problem | 400 | - | - | - | Yes. Beautifully! |
| Help Others | Many people have the same needs | 400 | - | - | $100 | No - more versions |
| Patent Protection | Protect uniqueness & investment in marketplace (Note: He has more work than he can handle) | 500 | 80 | - (See note) | $20,000 | No |
| Software development | Requires special software & development skills | 600 | 400 (charged for) | Guru.com & NCS | $18,000 | Ongoing |
| Create appropriate web site | Convey proper image; explain product properly; create ability to transact business | 1,600 | 100 (charged for) | Various & Guru.com | $5,000 | Editing is never done |
| Price the product | Set pricing fairly; convey mission to help others | 50 | - | - | - | Reviewed regularly |
| Web Hosting | Web site requires unique features & safeguards | 150 | - | x | $2,200 | $1,100/yr Ongoing |
| Hacker Safe | Web site requires many protections against intrusion | 130 | - | Scan Alert | $500 | $500/yr Ongoing |
| Legal | Company formation and to stay out of trouble | 200 | 10 | As required | $1,000 | Ongoing |
| Licensing fees to RSMC | Product must pay for its intellectual property | - | - | - | $70,000 | Plus 6% |
| Payment Gateway | Wanted way to offer services in different currencies | 100 | - | $800 | Ongoing | |
| Web bank | Needed to process transactions by credit & debit card | 100 | - | |||
| Traditional bank account | Needed to run business | 100 | - | $300+deposits | $12/m | |
| Managing SEO | Search Engine Optimization, primarily through writing techniques and developing proper keywords | 240 | - | BulidTraffic & others | $150 | Ongoing |
| Marketing | The Web is too big to just use SEO (hang a sign) | 250 | - | Google, Yahoo & others | $450 | Ongoing |
| Website Statistics | Monitor results to tune performance | 200 | - | Webalizer, Google & Yahoo | - | Ongoing |
| Review Logs | Resolve issues found | 50 | - | Web Site | - | Ongoing |
| Software Maintenance | Traffic, database backup, website testing & misc. | 20/m | - | - | $100 | Ongoing |
| Accounting (CPA) | Pay taxes, obey the law, understand business performance | 40 | 5 | CPA firm | $1,000 | Ongoing |
| Salaries/Payroll | To feed us, etc. (provided in another way) | None | - | - | - | No |
| Benefits | To protect & assist us (provided in another way) | None | - | - | - | - |
| Office Needs | Computer, software, printer, telephone, etc. (Windows machines have failed us miserably; we have gone back to the faithful Mac.) | 40 | - | - | $1,500 | Telephone & supplies |
| Customer Service | PO Box, email & misc. customer service | 250 | - | - | - | Ongoing |
| - | Totals |
5,400* | 500 | - | $122,100 | $300/m |
| Payback |
*Assume
rate will be $25/hour (5,400 x $25/hr)=
|
$135,000 | - | - | $122,100 | $300/m |
| - | - | Total Cost | - | Subscriptions Needed | @ $25/year (Average) | |
| (No payroll) Breakeven | When will total cost of $257,100 be recovered? ($122,100+$135,000) |
$257,100 | - | 10,284 | It will take about10,284 subscriptions at $25 to Breakeven | |
| Not Included: A) Payroll and benefits costs. B) Ongoing product development, and new versions. | ||||||
Note 1: A vendor on this list should not to be taken as a blanket endorsement: You should take every precaution when selecting and dealing with vendors, including but not limited to: careful screening, nondisclosure agreements, contracts, and making sure that you will get whatever you intend to pay for before making payment.
This is a work in progress that we will be updated from time to time - last update July 1, 2007; partial update Sept. 30, 2009.
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