We own the CPE gear so we consider it an investment.
The downside is that a Bank won't share that vision, and they will provide
zero value for the CPE.
However, when the CPE is leased, and someone was willing to lend you money
for it, and has claim to it, all a sudden the bank recognizes the value of
the boorrowed money. Expecially when they can re-finance it to shave off a
few points. My view is, what good is an asset if no one will lend against
it?
My view is... If you've made cash flow possitive,you are over the hard part.
If you stay on your same path, you'll be able to finance your self with cash
receivables and cash flow. Once you've reached that state their is no dire
motive to have to grow and get financing. When you reach that state,
traditional banks will lend you money.
My advice is to be realistic on how close you are to be able to self fund on
receivables. If you are no where near that, than you are one of those
companies that ran out of money before you got there, and you ahve no choice
but to look for financiors, sell, or wait it out without growth. At thios
stage of the game, waiting it out usually means the competition passes you
by.
But if you are cash flow possitive, and you still have energy to keep at it,
you may do better in the long run, staying away from the investors. Persuing
the investment will take lots of time to document and justify, and you will
loose productivty during that time.
Good luck with your ventures.
Tom DeReggi
RapidDSL & Wireless, Inc
IntAirNet- Fixed Wireless Broadband
----- Original Message -----
From: "Lonnie Nunweiler" <[EMAIL PROTECTED]>
To: "WISPA General List" <wireless@wispa.org>
Sent: Tuesday, February 20, 2007 12:25 PM
Subject: Re: [WISPA] For those in business just about a year...
We own the CPE gear so we consider it an investment. We charge a flat
$150 install fee and $30 a month. We pay for the gear in 2 months and
we are straight profit after that. If the Telcos had their ROI that
good they would be dancing.
Lonnie
On 2/20/07, Travis Johnson <[EMAIL PROTECTED]> wrote:
Equipment leasing? Every install for us is a break-even (after truck
roll, installing a firewall/router/AP for free, etc.) and we start
making money on every customer on their first monthly payment. :)
Just a thought.
Travis
Microserv
Matt Liotta wrote:
> Most service providers never make it much past break even because of
> the high fixed costs in this business. Fill up one T1 with customers
> and the second one is the same price as the first. You have to be able
> to support large volumes just to change cost ratios. Then you have
> things like CALEA that come along at change the cost equation. I've
> heard from a number of people who's business plans can't support
> CALEA. I am rambling a bit, but my point is that fresh capital could
> be just the thing a break even business needs. How else do you punch
> through to the next level?
>
> -Matt
>
> Lonnie Nunweiler wrote:
>> If you broke even but had a partner who did not help very much, then
>> my feeling is you should just stay on the course you have and the
>> profit will happen. If you bring in new money and new people my
>> feeling is you stand a chance you'll just end up with more of the
>> same. Trying to meet too many expectations is not a good thing and
>> ruins your focus.
>>
>> Lonnie
>>
>> On 2/20/07, Rick Smith <[EMAIL PROTECTED]> wrote:
>>> yep, rural NJ. Northern. ALL hills, ALL trees.
>>>
>>> Doin ok so far, about break even on 300k over 4 yrs, but need a
>>> payoff, and
>>> now I'm lookin at some private investors who are interested.
>>>
>>> I need to get a feel on realistic projections.
>>>
>>>
>>> -----Original Message-----
>>> From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED]
>>> On
>>> Behalf Of Joe Laura
>>> Sent: Tuesday, February 20, 2007 1:10 AM
>>> To: WISPA General List
>>> Subject: Re: [WISPA] For those in business just about a year...
>>>
>>> I wish we would have had funding. Just hard work, 7 days a week, 14
>>> hour
>>> days until things started rolling. Eventually made ends meet and then
>>> actually started seeing some profits at some point. Advertising is a
>>> mystery. Its like certain wireless gear. It might work in some areas
>>> but not
>>> others. Are you in a rural area?
>>> Superior Wireless
>>> New Orleans,La.
>>> www.superior1.com
>>> ----- Original Message -----
>>> From: "Rick Smith" <[EMAIL PROTECTED]>
>>> To: "'WISPA General List'" <wireless@wispa.org>; "'Principal WISPA
>>> Member
>>> List'" <[EMAIL PROTECTED]>
>>> Sent: Monday, February 19, 2007 11:51 PM
>>> Subject: [WISPA] For those in business just about a year...
>>>
>>>
>>> > Couple questions for you:
>>> >
>>> > 1) How did you get funding ?
>>> >
>>> > 2) How many customers are you up to so far ?
>>> >
>>> > 3) How many installations per month / week / day ?
>>> >
>>> > 4) How did they find you ? Advertising methods...
>>> >
>>> >
>>> > I'm in the middle of rebuilding my company from the disaster it's
>>> been in
>>> > because of a deadbeat partner, and these questions (and more) came
>>> up at a
>>> > meeting of the minds tonight. I figured no better place to get
>>> the answer
>>> > than existing WISPs.
>>> >
>>> > Offlist, if need be. This will be private for me only, just for
>>> > information.
>>> >
>>> > thanks
>>> >
>>> > R
>>> >
>>> >
>>> > --
>>> > WISPA Wireless List: wireless@wispa.org
>>> >
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>>> >
>>>
>>> --
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>>
>>
>
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Lonnie Nunweiler
Valemount Networks Corporation
http://www.star-os.com/
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