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Re: [ossig] [OSSIG] Proposal for the formation of an OSSIndustry Association

aargg... i have written some long winded story about some biz plan
figures, and it does not appear on the mailing list. 

it was a reply to having 100 business or something like that. so here is
that reply again.

i am not sure if we have 100 oss businesses in malaysia, but i am sure
we have more than 100 oss enterprenuer, user, developer, student,
employee, salesman, programmer, uncle, makcik, etc.

we will certainly need 100 good members.

for capital we will need about rm 50,000 for initial assets and minimum
operating expense for 6 months. so we need 100 members to invest rm500
each on average. we can have it in multiples of rm 100 - so that we can
have more people in.

for minimal operating expenses we need rm 6000 per month:
1. office rental: rm 500
2. finance and admin exec salary and epf: rm 2000
3. technical exec salary and epf: rm 2000
4. monthly committee meeting: 10 person x rm 10 = rm 100 (refreshments)
5. utilities & communications: rm 1000
6. r&d allowance: 16 manhours x rm 25 = rm 400 (to be subcontracted by
committee for some core product)

for revenue, potential sources (% profit margin):
1. sales: books and cd: 100 x rm 50 x 50% = rm 2500
2. sales: hardware / peripherals / devices: ??? x ??? x 10%
3. services: development: 100 mandays x rm 500 x 10% = rm 5000
4. services: support: ??? x rm 500 x 10%
5. ???
6. ???

as you can see we need the 100 good members who each can:
1. invest rm 100 for 5 consecutive months
2. buy rm 50 for books / cd / magazines monthly
3. get 1 client to pay rm 500 for development services on a monthly
basis (installing an intranet / firewall / spamblock / etc)

i will probably be blasted for these figures, for being unrealistic,
impractical, optimistic, etc, etc. the point i wanted to make is that it
is feasible with 100 good members or more.

as businesses, not many of us will object to paying a 10% margin to the
organisation, if it can bring in the business.

as individuals all of us spend more than rm 50 per month of books /cd /
magazines / etc.

as users, not many will complain of converting a static html website to
a php cms for rm 500 x 2 mandays. or rm 500 x 2 mandays to install an
intranet. it is all a question of value and getting the core products right.

in terms of marketing, the govt is already doing that, we just need to
tap into that network and deliver the solution and services. see today's

Raja Iskandar Shah
n:Shah;Raja Iskandar
fn:Raja Iskandar Shah
org:RISC Niaga Enterprise;