What happens over time if the revenue continues to slide by approx $1m per year due to competition from additional agents whilst the cost of selling the Netsuite products for JCurve increases from the current $900,000 per annum. Which it will with Spectrum costs plus the possibility of inflation rearing its head in due course.
Let's say another 3 years.
The business model will be under severe financial stress.
JCurve has had the best economic conditions on which to build the company in its own right with new innovative self-owned products and they have chosen to go down the path of being an agent.
They have not moved with the times and now the market place has changed.
There are now numerous ERP software suppliers and distributors in the market place, JCurve is but one agent and their revenue will take a hit due to competition in this space.
They have waited too long to alter their business model. Riyo is the chance to slash overheads and branch out in a new direction.
They have hit headwinds alright.
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