Financial Priorities and Revenue Roadmap

Current Situation

• Current Revenue: $0
• Stage: Pre-revenue, focusing on product development and initial market entry

Primary Financial Objectives

1. Infrastructure Maintenance

• Includes: Cloud Compute and GPU, development tools, and security measures
• Priority: Critical - Must be maintained for product development and eventual launch
• Note: we have a scalable model that never require debt - the moment we have clients, we are net positive, if only by dollars.

2. Founder Salaries and Benefits

Priority Order:

1. Lucas (CTO)

   • Salary: $4,500/month
   • Health Insurance: Estimated at $500/month
   • Total: $5,000/month

2. Jake (Lead Engineer)

   • Proposed Salary: $4,000/month
   • Health Insurance: Estimated at $500/month
   • Total: $4,500/month

3. Todd (Business Relationships)

   • Proposed Salary: $3,500/month
   • Health Insurance: Estimated at $500/month
   • Total: $4,000/month

Total Monthly Founder Compensation: $13,500

Revenue Targets and Milestones

Milestone 1: Break-even on Infrastructure and Lucas’s Salary

• Monthly Revenue Target: $8,000
• Strategy: Focus on individual subscriptions and small team implementations
• Estimated Timeframe: 3-6 months from product launch

Milestone 2: Full Salary for Lucas and Jake

• Monthly Revenue Target: $16,500
• Strategy: Expand individual user base, secure 2-3 small team contracts
• Estimated Timeframe: 6-9 months from product launch

Milestone 3: Full Salaries for All Founders

• Monthly Revenue Target: $25,000
• Strategy: Maintain growth in individual and small team segments, secure first enterprise client
• Estimated Timeframe: 9-12 months from product launch

Milestone 4: Operational Stability and Growth

• Monthly Revenue Target: $50,000
• Strategy: Balanced revenue from all segments, focus on upselling and customer retention
• Estimated Timeframe: 12-18 months from product launch

Additional Considerations

1. Emergency Fund

   • Target: 3 months of operational expenses ($75,000-$100,000)
   • Purpose: Buffer against market fluctuations and unexpected expenses

2. Marketing and Sales Budget

   • Allocate 10-15% of revenue for marketing and sales activities once revenue reaches $25,000/month

3. Research and Development Fund

   • Allocate 5-10% of revenue for ongoing R&D to maintain competitive edge

4. Legal and Accounting Services

   • Budget $1,000-$2,000/month for professional services to ensure compliance and financial health

5. Employee Stock Option Pool (ESOP)

   • Consider setting aside 10-15% of company equity for future employees

6. Advisory Board Compensation

   • Budget for potential advisory board members (e.g., 0.5-1% equity vested over 2 years per advisor)

Potential Action Items

1. Develop a detailed cash flow projection for the next 18 months
2. Create a fundraising strategy to support operations until break-even point
3. Establish key performance indicators (KPIs) for each revenue stream
4. Develop a customer acquisition strategy focusing on high-value, low-cost channels
5. Create a timeline for hiring additional team members based on revenue milestones
6. Implement financial tracking and reporting systems for accurate monitoring

Conclusion

This roadmap outlines our path from pre-revenue to operational stability, focusing on maintaining our infrastructure and fairly compensating our founding team. By setting clear milestones and considering additional financial factors, we position ourselves for sustainable growth and success.

Regular review and adjustment of this plan will be crucial as we navigate the early stages of our business. Our primary focus should be on rapid product development, securing initial clients, and maintaining lean operations until we achieve stable revenue.