Assuming that all of your customers paid the $19.95 monthly charge (this would probably not be the case), our company would not even break even until we had recruited 214 customers. This figure is obtained by dividing our monthly recurring charges of $4,250 by $19.95 = 214, and does not include the costs of our initial outlay of capital for the hardware.

Our company would not see any real monetary benefits until we are able to expand and purchase new hardware to compliment our existing hardware. This expansion would allow us to seriously recruit business customers, because our new equipment would give us the ability to handle digital connections. 

Notice that the words "we will have a lot of free time to play tennis or golf" never showed up in our business scenario. From all indications, running an ISP is a tough, price driven business where the owners/workers have a lot of sleepless nights, as they have to deal with hardware or software problems, as well as the prospect of constant customer recruitment to stay afloat.

This is not to say that the owners would not have a lot of fun doing this, and maybe even make a more-than-respectable amount of money out of running an ISP. But owners should expect to start with at least $50,000 in working capital to make sure all expenses are covered, and to make sure they have money to live on in the early stages when the finances are tight.

Overall, we think this would be a great business to be in if you really love computers and dealing with the problems that can arise. Do not expect it to be a "get rich quick" scheme, or you could be out of business soon after your startup,  and in debt for years to follow.