Litebooks
Ready for LaunchAnnual accounts software for accountants managing low-activity entities
The Opportunity: Total Addressable Market
TAM (ANZ)
$107M
3.7M entities × $29/entity
SAM (Target Segment)
$26M
1,200 NZ firms × 75 entities avg
SOM (Year 2 Target)
$2.9M
100 firms × 1,000 entities
| Market | Entities | Litebooks-Eligible (50%) | ARR @ $29/entity |
|---|---|---|---|
| New Zealand | ~700,000 | ~350,000 | $10.2M |
| Australia | ~3,000,000 | ~1,500,000 | $43.5M |
| Total ANZ | ~3,700,000 | ~1,850,000 | $53.7M |
Entity Definition: Companies, trusts, partnerships, sole traders, and other legal structures that require annual accounts. 50% of entities managed by accountants have minimal transactions (10-50/year) and don't need full accounting software — they need structured annual accounts.
Crossing the Chasm: Beachhead Strategy
Beachhead Market
NZ Accounting Firms (3-20 Staff)
- • ~1,200 firms in target segment
- • 50-500 entities under management
- • 40-60% low-activity entities (trusts, holdings, dormant)
- • Currently using spreadsheets or over-paying for Xero
Why this beachhead: Small enough to dominate, large enough to matter. NZ accounting is a tight professional network — win 20 firms and word spreads fast.
Bowling Pin Strategy
1
NZ Mid-Size Firms
Year 1: 50-80 firms
2
NZ Small Firms
Year 2: Referral expansion
3
Australia Entry
Year 2-3: NZ references → AU firms
Crossing the Chasm Logic: Don't try to win the whole market. Win one segment completely, use them as references, then expand. Xero did this — they engaged 100% of NZ accounting firms in Year 1 before going global.
Whole Product: What Accountants Actually Need
The Spreadsheet Problem
50% of entities don't need full accounting software. But spreadsheets create chaos:
- ✕ Version control nightmares ("which is the right file?")
- ✕ No audit trail for sign-offs
- ✕ Staff leave, institutional knowledge vanishes
- ✕ No practice-wide visibility
The Whole Product Solution
Purpose-built for annual accounts preparation:
- ✓ Structured workflow for low-transaction entities
- ✓ Integrated sign-off with audit trail
- ✓ Practice-wide dashboard and progress tracking
- ✓ Not a stripped-down Xero — purpose-built tool
Strategic Philosophy: Accountant-First, Accountant-Only
Xero's Disruption Model
Used accountants as a channel to reach business owners. Made accounting "easy" enough that business owners questioned whether they needed accountants.
- • Accountant is the channel, not the customer
- • End-client sees the software directly
- • Accountant's value is commoditised
Litebooks' Empowerment Model
Litebooks makes accountants MORE valuable. It's their tool, not their replacement. End clients never see it.
- • Accountant IS the customer
- • End-client never touches the software
- • Accountant's expertise is preserved
Strategic Bet: We are not competing with Xero. We are building the opposite of Xero. This is a bet on accountant empowerment in an era of automation anxiety.
The Offer: Risk-Free Pilot
Lead OfferValue Equation
| Dream Outcome | Structured annual accounts workflow, not spreadsheet chaos |
| Perceived Likelihood | Use YOUR entities during trial — real data, real results |
| Time to Value | First entity done in hours, not days |
| Effort Required | Guided onboarding, founder-led setup |
| Risk | Zero — no card, no auto-billing, no commitment |
Pricing
Per Entity $29/year
85% less than Xero ($192/year)
Typical Firm (75 entities) $2,175/year
Trial 60 Days Free
Risk Reversal:
No credit card required. No auto-billing. If you don't continue, we delete your data and wish you well. Zero downside.
Scarcity:
We can only support 10 new pilot firms per month to ensure quality onboarding. Founder-led for early adopters.
Unit Economics
$4,350
LTV (3yr, 75 entities)
~$300
CAC per Firm
14.5:1
LTV:CAC Ratio
Month 10
Breakeven
Investment Decision
Investment
- Phase 1 (M1-6): $125,000
- Phase 2 (M7-12): $125,000
- Total Y1: $250,000
Month 6 Gate Criteria
- ≥15 paying firms
- ≥25% trial conversion
- <10% monthly churn
Breakeven
- 80 firms (~6,000 entities)
- $174K ARR
- Target: Month 10-12
Portfolio Gate: Meeting Month 6 criteria unlocks RiskSense investment ($350K). This sequence de-risks the portfolio.
Recommendation: Approve
Key Assumptions
50% of entities are Litebooks-eligible (validation: 10-firm survey)
Accountants will pay $29/entity (validation: pilot conversion)
Trial conversion ≥25% (industry benchmark)
Annual churn <10% (sticky workflow tool)
Key Risks
Accountant conservatism: Risk-free pilot mitigates
Seasonality: Avoid launches in March-April, July
BGL in Australia: Validate with 5 BGL-using firms pre-AU launch
Founder bandwidth: Early sales hire if volume exceeds capacity