Thursday, December 21, 2006

Little by little

I can't believe I just spent ... hours/minutes doing ... what a waist of time.
I've said it over and over as I sat in front of my computer. "This is taking to long!"

Yesterday I figured out how much just 5 minutes an hour wasted on software that doesn't do the job quite right costs my company (or your company). It works it self out to about 173 hours a year. Per employee. So one FULL month of work is accounted for by these little 5 minute chunks. That is insane!

But what to do? When I first started working for my self I found a bunch of the little things I did in the day could be automated. Backing up the my documents folder to another drive for instance took about 20 minutes per day. I didn't like that so I set out to get a program to do it for me. Now assume I take two days and I drop everything in a search for that software. When I can't find that software I go about spending another week writing it. What's my net cost? Well I spent 1.5 weeks fixing a problem that was costing me 20 min a day (or 86 hours). So I'm ahead 26 hours, even if I was the only employee. For each additional employee I gain an additional 86 hours of work in the first year, and 86 hours of work for every employee for the subsequent years.

Now lets assume I paid someone else to build it (for round numbers sake lets say it cost me 10,000$) Sounds crazy and even I'll admit it's a bit much for such a simple program. But for this argument 10k is what we'll work with.
Second assumption. You pay your employees 40k a year or 769$ a week.
You save them 86 hours a year.
Third assumption you have 5 employees.
You now save (because of this software) 86 x 5 = 430 hours = 10.75 weeks = 8266$

Oh no seems like you're in the red for this application to the sum of 1734$. Wait wait..
Forth assumption. You plan to be in business for more than one year.
Year 2 in the black for 6232$
Year 3 in the black for 14798$

Now this was a small small case with a very simple application that saved you 2.5 minutes an hour. Imagine a custom application that saves you 5 minutes per hour of work.
Or if instead of 5 employees for the measly 2.5minutes you have 10 employees.
39,600$ cash in your pocket after 3 years.

The question I guess I'll leave you with is can you afford not to get something custom built?

Wednesday, December 06, 2006

Great Day

Every once in a while a software developer has a hallmark day.
Today was one of them for us and me specifically.

A while back my company developed a small little study aid for our own
personal use. It was a cue card application meant to allow me to study
French on my palm. After we finished the software we slapped our label on it
and sent it out to the world. We figured that the software could be a little
ad. for our company. Nothing major but something that showcased an easy to
use program we developed. Of course it was free for all.

Today we hit the jackpot. I think that if all else, if the company closed
it's doors, we would be a success in the mind of this CEO. Today a small
little school in a southern state started using the software to help it's
grade 8 class study math and vocabulary.

We didn't make a dime off of it, and lets face it not many of these users
will be our clients in the near future. But cash isn't really the only
measure of success, is it?

There is no doubt in my mind that to build a great company you have to be
truly interested in the success of the people your company touches. Be
those your staff or your clients, it's all about them. To have children as
some of the people who benefit from your companies product is beyond
measurable success for me.

Sincerely David Rawk,
CEO One Line Applications
www.onelineapps.com