Before Official Launch Next Week, We've Made N235k Profit In 12 Days

[Ogechi_Daniel_Ndukwe]

I won't say we are there but with such a huge profit in 12 days, Accountingsoftware.com.ng is a startup I would really want to explore deeply.

How did it happen?

Currently, we attract 3k monthly visit via Google ( Business owners in Nigeria, Kenya & Ghana) and had used that to build an email list of 398 subscribers so far.

We leveraged on the recent global cyber attack - Ramsomware, sent a newsletter to our email subscribers, in less than 7 hours, 30 replied and 8 bought within 12 days.

We are still updating the store with more accounting software like Sage Pastel, SAP ERP and are already talking to local financial product application developers for more listing.

Aside from commission on sales, and setup services, how else do you think we can monetize the store?

AccountingSoftware.com.ng is an online store where SMEs order original accounting software with full license key registered with their business information. We want to tackle accounting software piracy in Nigeria.

Read more about us on TechPoint Blog

Please share your opinion....Thanks

[Diakon]

I don't understand how the ransomware attack helped you. You don't sell antivirus software, do you?

[Ogechi_Daniel_Ndukwe]

But you forgot that fake windows OS with incomplete patches are vulnerable...installing a new original software uncovers those patches and help you resolve them.

[ace_mayor]

That's an average of 29700 per software.

[Ogechi_Daniel_Ndukwe]

Blog

Exactly, average profit per sale

[unclechyke]

i think your business model is flawed, how do i try the software first? what if your target market cannot afford to pay the lump sum? what about backup? ability to access your data anywhere? plenty other questions, good product but presentation seems wrong.

[Ogechi_Daniel_Ndukwe]

Bros...You don't just jump into conclusion like that - I have 4 years + accounting software setup and implementation experience in Financial Service, Manufacturing, Retail and Distribution, Real Estate and Property Management, Construction, Hospitality, Legal Services, Travel, Healthcare, Professional Consulting, Transportation and NGO’s.

Some of the clients on my list: HomeTel Developer Ltd, Haven Homes Property, Germain Autos, HeReign BDC, WakaNow, Primero Ltd (BRT Business Operator In Lagos), Nordical Fertility Centre, Atorj Technology Limited, Nigeria Economic Sumit Group, VTY Resources Limited, Pebeez Industrial Services, Body FIT Ventures Limited, Temple Private Secondary School, The KOK Engineering Limited, Transweb Bureau De Change + More

All these questions you raised will be addressed

My accounting software store is powered by experience and not money.

I appreciate your comment.

[unclechyke]

Oga experience no vex.... Don't always assume the whole world is against you, you put this up to get feedback so read my comment again pick the one that matter to you and your business and throw the rest away.

I have over 10yrs (post nysc) experience if that matters to you. No vex, na radar we dey

[bedy]

Okay It's alright @Ogechi_Daniel_Ndukwe @unclechyke.

[ebuks4ever]

Calm down na. Shey you are asking for constructive criticisms? Abi u are advertising instead?

[Ogechi_Daniel_Ndukwe]

Am so sorry bro! *smiles*** We are together bro.

[Freshboi_Ekundayo]

My Question to you,

Why not open premium service line allowing people to get financial and accounting services from you while using your product as a service than even buying outrightly.

1) Pay as you use: Some Startups just need accounting softwares to prepare books for audits( those who cant hire in house accounts team) you can allow them use licence for an agreed time

2) Tutorials and Advice Forum: Weekly tutorials on use of softwares also to help prep for Exams and Qualification, discussion forums and help center guide( geared towards accounting professionals in startups and medium sized firms)

3) Full service Reports: Trial balance, Sales and Mgt Report, Quarterly Report, Half year Report, Monthly Report, Analysis on Expenses via weekly and monthly report etc ( For Startup Mgt Teams)

4) Financial Consulting: Valuation of Startup , Financial modelling etc.

Buying an accounting package wont be necessary to a guy starting out who would rather use an excel sheet to compute expenses but we know financing requirements are important from Day 0!, your solution or business shouldnt revolve round sales of the product which is quite high, N 300k for 4 users

[Ogechi_Daniel_Ndukwe]

Quite useful...Your suggestions are exceptional.

1 - Pay as you use - From my experience and interaction with SMEs, startups do not need accounting software for just audit - My clients use it to organise their books, track daily cash flows, manage customers' balances, suppliers' balances and monitor their profit or loss trend. We have partnered with a big distributor to make the licence available to our customers. Licence are one-off, they don't expire. A company like WakaNow, Primero, NESC, are mid-large companies with the cash to buy a full licence. I believe there are more of such companies.

Talking about the temporary licence, that's where I am looking at a possible partnership with a software developer who can offer such product.

1. Tutorial Advice Forum - I am currently uploading videos on my YouTube Channel, where users can learn accounting software (self-paced). Also, you can visit BestAccountingForum.com - This is my niche forum - a platform I plan to grow and expand into other African countries. We have 1600 accounting students, graduates and professionals as members and still growing.

2. I don't get what you mean by full service reports.

When we look at accounting software industry, we often think it's a segment that's is not yet big (because SMEs can still resort to EXCEL) but I can confidently tell you - businesses pay more when they have existing data excel can't manage again and want to migrate to a better platform. The industry is big - SMEs are not businesses that can't afford 300k - A firm like HomeTel developers limited paid over 500k to get a 5-user licence installed (with setup and training).

That's the reason I designed my model to only attract clients that want accounting software urgently. Primero (owner of BRT) went online, found us and requested for a demo before deploying 10-user license (QuickBooks Enterprise).

I appreciate your ideas...Looking at how we can work with a developer on a software that values startup based on cash flow - 4th idea, very awesome.

[Lamidi_b_a]

I believe we started a convo sometime ago but never concluded

[Ogechi_Daniel_Ndukwe]

I can't remember Sir

[Freshboi_Ekundayo]

Oga,

It seems your target market then are not on growing startups where the numbers are but in established startups where the money like you said is but you need to strike a balance.

If youre considering growing startups consider the following:

1. Pay as you Use: Get speaking to this companies to create a system where you act as Master licence holder that can sub let for use...rather than buy the accounting package at 300k, they can pay say 20k monthly for use or a 5k use weekly you decide how you charge...For growing startups ( idea stage to 1 year, finance basically is simple...expense and income and growing user base, it gets complex wen overheads come, new hire and acquisitions then they need to perform more complex use.

2. Full Service Reports and Data: Investors usually ask for this financial informations wen looking at a startup company growth performance, some dont know how to prepare such so you can help.

Its my suggestion sha, not by force, i see you have a market already, great one.

[Toby]

True startup is about business sustainability, not cash in ,cash out system, companies like Adobe are built round that, but everyones business model is different, his might not involve building a long time, progressive, dependable relationship with his clients.

The advantage of cash in and cash out model is the liability, right now his not responsible for how his software is been used and its maintenance, which can be very expensive in the long run.

Like I said every business model is different.

[Toby]

Sorry new here, but what I don't get is, are yhu reselling the software or yhu made the software, yhu said profit like yhur a retailer or something

[Ogechi_Daniel_Ndukwe]

@Toby We resell the software, offer setup, training and implementation service.

We are not just in this business to sell alone, but also perfecting a support service model that will keep customer - Accounting software business is not all about selling - businesses are expected to backup company files and upgrade to a later version every 4-5 years for data security and maintenance purpose. So, if a client is happy with you, he will definitely come back for a software upgrade.

Working with local financial software developers is our top focus right now .

[Ogechi_Daniel_Ndukwe]

Our distributor offers 20-30% discount on sales which is equivalent to our profit margin. We don't buy, keep and resell...We take orders and fulfil...that's drop shipping (Zero inventory)