RoyDaleOne Posted January 17, 2008 Report Share Posted January 17, 2008 Wow, you would need at least $500,000 to $1,000,000. I know of one software project that ate $10M before it was out the door. Link to comment Share on other sites More sharing options...
chadw Posted January 17, 2008 Report Share Posted January 17, 2008 Wow, you would need at least $500,000 to $1,000,000. I know of one software project that ate $10M before it was out the door. I agree on that cost estimate if not even higher. I would also be interested in this as well, but if there is a potential of 2 years before the software would actually come out, you have a lot of salary and other expenses to pay out before there is any income. Link to comment Share on other sites More sharing options...
Bart Posted January 17, 2008 Report Share Posted January 17, 2008 I agree with KC. There are 528 registered users. Even if only 50% put in a minimum of $250.00 you would have about $64000. Of course some people could put in more and others less. It might not be as far fetched as you might think. I join with KC and sure lots of others in asking you to consider it. Eli 528 * $250 = $132,000. $132,000 / 2 = $66,000. Link to comment Share on other sites More sharing options...
zeke Posted January 17, 2008 Report Share Posted January 17, 2008 count me in! Link to comment Share on other sites More sharing options...
BulldogTom Posted January 17, 2008 Report Share Posted January 17, 2008 OK, here is my fuzzy math thinking about this last night. Form a corp. Authorize 1,000,000 common shares. Highly speculative risk capital. Issue 200,000 shares first time out @ $5. 1 Million for start up and infrastructure costs. That should buy servers, phone systems, operating software, and programming help. When the software is ready to roll into BETA, do a stock split 2 for 1. Then offer another 200,000 at $5 for 1 million for advertising and support start up cost. Sell 5,000 copies first year at average of $500 (assuming a 3 level platform: basic 1040 1 state @$299 + efile fees extra, complete 1040 all states with ulimited efile @ $699 and Business + 1040 + efile @ $999.) That gets you another 2.5 million to get through the 15 weeks of tax season. Hire us for beta and overflow support (we will work very cheap the first year). If you are successful (and you will know by the end of the first year), split the stock again 2 for 1 and issue another 200K shares for $5 for another 1 million of infrastructure upgrades and advertising. Get 2000 repeat customers on early renewal for another 1 million of operating cash. 18 months from now you have a corp with 4 million shares authorized, 1.4 million issued, a client base of 5K users, and hopefully you are on your way. Investors on the early issues got stock dividends so they are happy and well positioned for future dividends and returns. No one has to invest more than they are comfortable with investing, and those on the cutting edge get the bigger reward. We can all help out a little on beta testing and support, and the Corp can pay us a little bit for that help (can you say web chat support, any of us can log on as support techs to make that work). Simple, huh? What a business plan! (OK, rip me if you want - I am just musing on possibilities) Mel, I am sure you could whip this out just like I layed out for you. You are all ready to go now. Tom Lodi, CA Link to comment Share on other sites More sharing options...
Lion EA Posted January 17, 2008 Report Share Posted January 17, 2008 With what I'm putting out for a top tier software and an assistant and...I see anything up to $1,000 as small. I'd invest $1,000 in stock, probably $2,500 with Mel and names I've known and loved. I'd also pay $1,000 NOW to reserve my software which won't be available for a couple years. It's a different world now. You can have telecommuters easily. (I'd personally like to move to Hawaii, but you don't need any of my talents!) And, as far as big bucks necessary for advertising, less so now. We get our information and leads from boards like these. I get trade journals, like NAEA, but read message boards twice daily. If someone on this or one of my boards mentioned a new software and gave me a link to their website, I'd check it out that minute. I like Tom's business plan. We'd be spreading the word as production progressed to make that second (and future) stock sales a reality. Keep thinking. Link to comment Share on other sites More sharing options...
Bob Hoffman Posted January 17, 2008 Report Share Posted January 17, 2008 Count me in as well. I would be very excited to hear more as this acorn of an idea grows. Bob Hoffman Link to comment Share on other sites More sharing options...
RoyDaleOne Posted January 17, 2008 Report Share Posted January 17, 2008 SEC... at least in Florida limit of 35 investors (solicitations).. Link to comment Share on other sites More sharing options...
jainen Posted January 17, 2008 Report Share Posted January 17, 2008 >>as this acorn of an idea grows<< Fabulous opportunity to add all sorts of interesting new features. Here's one that will help pay for the project! You remember the dreaded Form 1040-PC? Of course it failed, but the basic fact remains that your average 1040 has a lot of blank lines and unused space. Now that e-file is becoming the norm, all the client gets is a reference copy. Besides all the empty forms, there's a big stack of worksheets and cover sheets and what-all. Let's sell ad space! Run a little data mining to tailor it for the individual client. If they have small children, we can put a cheerful splash of color for a local birthday clown. If income & dividends are low, indicating little savings or investment, we can slam a pre-approved credit application with an 800 number and exclusive offer code. Or even a 900 number, for those lonely singles. Estimated payments just take a 1/3 page; we could put a pizza coupon on the top part. Nah, forget that last one. I'd burn up all my profits printing them for myself. Link to comment Share on other sites More sharing options...
Karen Lee Posted January 17, 2008 Report Share Posted January 17, 2008 I would be more willing to visit my new venture in Hawaii on my own dime! Karen Link to comment Share on other sites More sharing options...
Booger Posted January 17, 2008 Report Share Posted January 17, 2008 The only way I would get in on this deal is if I would be CEO pulling a 250,000/year salary plus perks. Seriously though, I would have to be in charge of the money, since I have problems trusting people that I only know through this board. Booger Link to comment Share on other sites More sharing options...
GeneInAlabama Posted January 17, 2008 Report Share Posted January 17, 2008 I would be more willing to visit my new venture in Hawaii on my own dime! Karen You're not thinking about a tax write-off are you? (grin) Link to comment Share on other sites More sharing options...
BulldogTom Posted January 17, 2008 Report Share Posted January 17, 2008 You're not thinking about a tax write-off are you? (grin) Can you say "annual shareholder meeting"? Aloha Tom Lodi, CA Link to comment Share on other sites More sharing options...
Karen Lee Posted January 17, 2008 Report Share Posted January 17, 2008 Investment Expenses? Quarterly shareholder meetings? Karen Link to comment Share on other sites More sharing options...
joanmcq Posted January 17, 2008 Report Share Posted January 17, 2008 I like the idea of shareholder meetings. With a small start up, you'd have to have them...just not during tax season! Link to comment Share on other sites More sharing options...
Margaret CPA in OH Posted January 17, 2008 Report Share Posted January 17, 2008 I am in, too. I just posted a reply to the glorified positive comments on the Tech blog (or whatever it is) and remembered a couple of years ago. So many of us felt so close to the Maine staff that a collection was taken up and we treated them to a big thank you of a barbeque feast. They all responded by posting a picture for all to see. How wonderful to put faces to the names with which we had come to know so well. I think we won't see many CCH faces or recurring names now. I do have to acknowledge, however, that my 2 tech support calls have been handled reasonably quickly and with graceful comments. I was never on hold for more than a few minutes. The second tech was unfamiliar with the issue (and likely the product) but was very sincere sounding in trying to get an answer - why I couldn't efile the 941 yet. Well, we shall see. I am just ever so grateful for this board. I've donated once and maybe it's time to chip in again. I don't want this one to disappear! Link to comment Share on other sites More sharing options...
johnmac Posted January 17, 2008 Report Share Posted January 17, 2008 dam, and i was hoping you would start it in hawaii. it's warmer there ya know. :D Link to comment Share on other sites More sharing options...
kcjenkins Posted January 17, 2008 Report Share Posted January 17, 2008 Yeah, we could all go visit Mel every late May or June to discuss the direction the company should take. Link to comment Share on other sites More sharing options...
OkieTaxGal Posted January 18, 2008 Report Share Posted January 18, 2008 I think this is a great idea..... Link to comment Share on other sites More sharing options...
Mel in Hawaii Posted January 18, 2008 Report Share Posted January 18, 2008 Well it's nice to see the support, I disagree with the million to startup. Yes, there will be the costs of a programmer (myself plus a couple others), but the first version of the program will not require a massive call center as there will be fewer people initially. As the orders came in, that would fund the expansion to the point that you would need for for an established company. Why do I want to move away from Hawaii? Have you seen the costs of living in Hawaii? I don't think I could put together a team as dedicated in Hawaii as I could in Maine and the labor costs would be much higher. Telecommuting is an idea, something definately to employ in the early stages to be sure. But moving to Maine, I would have a house to work in that I wouldn't have to worry about the sky high rents in Hawaii, family around to help out with the kids and it would make more sense. More people go by Eastern time zone than they do by Hawaii time, so offering good hours for support would be better there unless I wanted to get up at 2am in the morning every day. As for the trust goes, if you don't want to trust me, that's just fine as I think you could easily just wait until the program was there and you could try it out for yourself. If you wanted to be a customer, then that's fine, if not is also fine. I will setup a private board here shortly, but that brings me back to how to keep it really private? How many of you are connected to CCH? All of you I would assume since you were customers, but at least it will cut down on the rest of the competition knowing what is going on. Link to comment Share on other sites More sharing options...
kcjenkins Posted January 18, 2008 Report Share Posted January 18, 2008 I sure hope you will invite me to your board. I promise not to tell anyone at CCH what you are doing. Link to comment Share on other sites More sharing options...
redux Posted January 18, 2008 Report Share Posted January 18, 2008 [ I will setup a private board here shortly, but that brings me back to how to keep it really private? How many of you are connected to CCH? All of you I would assume since you were customers, but at least it will cut down on the rest of the competition knowing what is going on. Link to comment Share on other sites More sharing options...
joanmcq Posted January 18, 2008 Report Share Posted January 18, 2008 Me either. Especially since I wanna be an investor. And Maine is lovely in the summer (well, ya gotta wear a lotta bug repellant in the woods, but). And Aroostoock is lovely although I did just look on a webcam and it looks a mite bit chilly right now! Link to comment Share on other sites More sharing options...
MAMalody Posted January 18, 2008 Report Share Posted January 18, 2008 I would like to be kept up to speed on this also. Link to comment Share on other sites More sharing options...
Monkeyman Posted January 18, 2008 Report Share Posted January 18, 2008 Me either. Especially since I wanna be an investor. And Maine is lovely in the summer (well, ya gotta wear a lotta bug repellant in the woods, but). And Aroostoock is lovely although I did just look on a webcam and it looks a mite bit chilly right now! joanmcq, It is snowing to beat the band right now in Caribou. We are expected to get 6-8 inches before the end of the day. I had to drive to a job interview today in this mess (only 12 miles or so), and they were impressed because I was the only one to show up in this weather so far. Monkeyman Link to comment Share on other sites More sharing options...
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