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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 - WorldPay PayPal $800 Ongoing
Web bank Needed to process transactions by credit & debit card 100 - WorldPay PayPal % transaction $50/m + fees
Traditional bank account Needed to run business 100 - BOA $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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