AccuCode

1
AccuCode

• Denver Software Club

2
AccuCode the Company

• Founded 1995 by CEO Kevin Price
• VAR, Software Developer Integrator of mobile
  computing and automated data collection
  technologies
• Private Company (still bootstrap)
• 30 employees
• HQd in Denver
• 9.1M 2003
• Customers include Kroger, 5 Airlines, The Sports
  Authority, Corporate Express, Crate Barrel and
  many others

3
AccuCode has proven expertise

• Software Solutions Services
• 9 years of experience- Wi-Fi, Bar Code, RFID
• Enterprise Software Development team
• Expert Professional Services Team

Proven Sales Market Development Over 200 Active
Customers
4
Sample Projects- Proving Repeatability
Warehouse Distribution
Store Systems Update for 200 acquired TSA sites,
mobile, wireless and infrastructure
Warehouse Mgmt Wireless networks Mobile
Computing Printing Proof-of-deliver
HomeShop Complete Click-n-Motar With routing,
directed shopping and mobile POS
EDI, Mobile Computing, WWAN, MailTracker and
BagTracker
1mm Sware 800k HW 200k Services
150k Sware 3.5mm HW 1mm Services
5mm Sware 15mm HW
3.5mm HW 500k Services
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Operating a Bootstrap Software Company
Getting Started
Select a business model that fits yours financial
resources! A software services model is much
easier to bootstrap than a software product model.
Pick the right market that is already well
defined but is under/poorly serviced. In the
early stages focus on the customers that nobody
else is reaching.
If properly executed a software services model
can be transitioned to a software product model
using customer funded RD.
6
Forcasting and Planning

• Use a Min and Max (Best Case and Worst Case)
  approach
• Calculate Minimum Monthly Operating Cost
• Estimate Worst Case Average Gross Margin
• Use this to back into what you MUST generate in
  monthly revenue

Then dont be afraid to dream! Estimate what you
could generate in revenue Expect margins to go
down with volume Project how much capacity you
will need to meet demand Where will it come
from? How will you pay for it?
Manage for the minimum. Strive for the Maximum.
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Managing a Fluid Business
Listen to your customers. Understand what they
need you to be. Dont confuse it with what you
think you should be.
Learn from your competition. Duplicate what
they do well. Improve on what they do poorly.
Dont be afraid to fail! Experimentation leads
to breakthroughs. Imagination is infinitely more
valuable than knowledge.
Most likely, when youve refined your model you
will no longer be in the business that you
started out to be in!
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Finance

Cash Flow is everything! Focus on Sales, Cost
of Goods Sold, A/R, A/P
Prioritize! Spend your money on personnel,
equipment and activities that you KNOW will
generate revenue. Sales solve all problems.
Dont spend what you dont have! Timing of
expenditures is very important. Index
expenditures to income.
Most likely sources of funding are customers,
vendors, friends, family, banks and SBA VCs
and angels are a long shot unless they have
backed you before.
Manage for profitability on every product,
every customer and every employee. Dont
confuse volume with profitability.
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Human Resources

No hire is better than a bad hire In my
experience, less than 2 of software job
applicants are qualified for the job they are
applying for
Everyone makes bad hires Recognize them quickly
and get hid of them.
It is a litigious world Document, Document,
Document
Smaller, smarter, more versatile teams get better
results! The 80/hour engineer that gets the
job done in half the time is better than the
40/hour engineer that never gets it done
Surround yourself with people that are smarter
than you. Let them do their jobs. Let them tell
you which candidates are qualified
People will do what you pay them to do
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Marketing

Hire a professional Unprofessional marketing can
be worse than none at all
Target Aim small, miss small
A good PR firm is a lot cheaper than
advertising Document, Document, Document
Nothing sells like a satisfied customer
Reference customers are gold. Dont be afraid
to compensate them for their time and opinion.
Your Website is your most important marketing
tool! It is your global calling card. Dont
skimp.
11
Kevins Start-up Tips
1. Dont take equity investment until youve
proven that your business can survive without it.
2. For capital equipment buy used whenever
possible and practical. Government auctions,
bankruptcy auctions, Ebay and the like.
3. Debt is cheaper than equity and a lot less
risky. No matter how good equity feels.
4. Whenever possible match expenditures to
income. Capital Leasing, Lines of Credit, and
Vendor Terms can all help.
5. The cheapest money you have access to is
vendor terms. Treat them well. Keep your
vendors informed about your business, build trust
and they will help finance your growth interest
free.
6. Everyone makes bad hires, identify them as
quickly as possible and get rid of them.

• Live within your means. Make it everyones job to
  manage cost.

8. Keep your vendors honest. Check their pricing
regularly and make sure they are staying
competitive.
9. Watch all of your expenditures on a monthly
basis. You cant control what you dont monitor.
10. Have fun! Youd be amazed at what it will do
for your business.