Since January 2009 we have developed a number of software products which are working well on SaaS model and yielding a satisfactory monthly rental amount. We have also been successfully implementating ERP and CRM Applications.
We are currently at the phase of establishment. The struggle phase of setting up our business is almost finished and we have started getting regular revenue through monthly rental of our software products.
During the initial 2 years of the business we often required heavy investments to maintain big staff and expenditures. The directors (me and my wife) invested all our savings and had taken loans from the market at various interest rates. This was the time when we were devoted towards the development of our software products, which required monetary input with nill output. To keep the operations going on, we tried our hands in BPO, which was a complete failure and gave us a major loss. Certain application development projects and project training to students helped us during this phase.
However, we started releasing our products by the beginning of 2011. But the situation kept going worse and we were getting hesitant in taking more loans. By March 2011, we had to bid good-bye to 90% of our work-force as financial situations had been worst.
Since April 2011, we started seeing results from our products. With the help of Google-AdWords we started getting responses and people from BPO Industry started liking products of ours such as e-leads, Predictive Dialer, VoIP solutions, ERP and CRM Solutions, Hosting space and FTP Accounts. Our other products like ERP for Educational Institutes and Healthcare Industry also gained attention and we closed some deals. Since the applications were large and organizations found it difficult to pay the amount at once we offered a monthly rental model, with all applications hosted at our servers, to which the clients agreed. And the things started moving henceforth.
The scenario as of today is: We are doing well and covering our operational costs with 30% of the monthly revenue. After our drawings, 55-60% of the monthly revenue goes towards re-payment of loans and majorly towards interest payment.
Our loans are approximately 60,000 USD (not the entire amount carries interest, but some of it carries interest of 5% per month) and the monthly interest goes upto 1,000 USD. Now this has become a vicious cycle and we see that major part of our revenue is going towards interest payment and less towards principal payment.
We are looking for an investor who can help us with lending USD 40,000/- and who will agree on repayment in monthly installments of USD 1,000/- for 5 Years.
Talking about the future prospects, we have recently joined hands with Tata Communications Limited as a Channel Partner and we are looking forward to resell their products, which we are sure possess very good market opportunities. We shall be hiring a small Sales and Marketing team soon and I shall be devoting more of my team towards business development. The new Director of the organization, my younger brother, is very well taking care of the entire Engineering and Product Management activities along with Technical Support to the clients and the other director (my wife) is taking care of Operations.
Hence, with keeping our fingers crossed, we assume that we shall be able to multiply our inflows in the coming time.
Our Bestsellers: The Product suite for BPO Industry
We do have competitors but our rates are far better than those of others.
If others move towards reducing the prices, we shall still sustain as we have maintained relations, quality and service standards and yet if price-fall becomes mandatory, we won't be much affected as we have good volume of customers which shall keep increasing.
The most important requirement of Customers in BPO Industry is support and service, for which me and my brother are always available.
The opportunity or advantage I'm seeking for is to get out of this vicious cycle of paying interest to multiple people. I wish to pay-off this amount to a single person with a fair amount of interest now and to be sure that we'll come over the debts in a fixed time.
With the monthly installment repayment mode we can maintain trust and confidence of the Investor and also see our liabilities decreasing. Furthermore, we won't have to report to multiple people and will be able to concentrate more on real work.
The financing will be used to repay our current debts, taken from multiple people and on heavy interest rates.
We wish to consolidate the external funding at a better rate of interest and then pay it back in a monthly installment mode.