RiskSense: Budget & Investment
Operational guide for Division leadership
Investment Summary
Total Year 1
$350K
Phase 1 (M7-12)
$175K
Phase 2 (M13-24)
$175K
Breakeven
M14-16
Gate Condition:
This budget is contingent on Litebooks Month 6 gate (≥15 firms, ≥25% conversion, <10% churn). Investment does not begin until Litebooks validates.
Why This Amount:
$350K buys channel development (BlueChip relationship), partner enablement tools, MSP onboarding support, and 12 months of founder time (30%). Channel economics mean we don't pay for direct sales — MSPs sell for us.
Budget Allocation: Where Each Dollar Goes
| Category | Phase 1 | Phase 2 | Total | % | What It Buys |
|---|---|---|---|---|---|
| Founder Salary (30%) | $27,000 | $27,000 | $54,000 | 15% | Channel development + partner success |
| Partner Manager Hire | $35,000 | $70,000 | $105,000 | 30% | 1 FTE from Month 9 @ $70K/yr |
| Product Development | $50,000 | $30,000 | $80,000 | 23% | Partner portal, API, integrations |
| Partner Enablement | $30,000 | $20,000 | $50,000 | 14% | Sales kits, training, co-marketing |
| Distributor Programs | $20,000 | $15,000 | $35,000 | 10% | BlueChip launch, AU distributor negotiation |
| Tools & Infrastructure | $8,000 | $8,000 | $16,000 | 5% | Partner CRM, analytics, hosting |
| Contingency | $5,000 | $5,000 | $10,000 | 3% | Unexpected costs |
| TOTAL | $175,000 | $175,000 | $350,000 | 100% |
Channel Economics Note:
Unlike direct sales, we don't pay for salespeople. MSPs are our sales force. Our spend is on enablement and partner success — helping MSPs sell more effectively.
Resource Plan: Who Does What, When
| Role | Person | Start | Allocation | Responsibilities |
|---|---|---|---|---|
| Channel Lead | Founder | M7 (post-gate) | 30% | Distributor relationships, partner strategy |
| Partner Manager | New Hire | M9 | 100% | MSP onboarding, enablement, success |
| Contract Developer | TBD | M7-9 | Variable | Partner portal, integrations |
Partner Manager Hiring Trigger
Hire when we have 10+ active MSPs and founder can't maintain quality partner relationships. This should happen by M9 if BlueChip launches successfully.
KPI Dashboard: How We Know If It's Working
Leading Indicators (Weekly)
| Metric | Target | Warning | Critical | Why It Matters |
|---|---|---|---|---|
| MSPs Onboarded/Week | ≥2 | 1 | 0 | Channel growth |
| Trials Deployed/Week | ≥10 | 5-10 | <5 | MSP activation |
| MSP Activation Rate | ≥40% | 25-40% | <25% | Partner quality/enablement |
| Trial-to-Paid Conversion | ≥35% | 25-35% | <25% | Product-market fit |
Lagging Indicators (Monthly)
| Metric | M9 | M12 | M15 | M18 |
|---|---|---|---|---|
| Active MSPs | 10 | 30 | 50 | 80 |
| Paid Seats | 1,000 | 5,000 | 15,000 | 30,000 |
| Seat Churn | <5% | <4% | <3% | <3% |
| MRR (@ $2.00/seat) | $2,000 | $10,000 | $30,000 | $60,000 |
Milestone-Based Funding Release
| Tranche | Amount | Release Trigger | Expected |
|---|---|---|---|
| Pre-Gate | $0 | Litebooks M6 gate must pass first | M6 |
| Tranche 1 | $100,000 | BlueChip agreement signed + Litebooks gate passed | M7 |
| Tranche 2 | $75,000 | 10 MSPs onboarded + 1,000 paid seats | M9-10 |
| Tranche 3 | $100,000 | 5,000 paid seats + AU distributor signed | M12 |
| Tranche 4 | $75,000 | 15,000 seats (breakeven) visible | M15 |
Kill Criteria: When We Stop
Hard Stops (Terminate)
- ✕ Pre-gate: BlueChip declines AND no alternative distributor by M8
- ✕ M10: <5 active MSPs after 3 months
- ✕ M12: <2,000 paid seats AND <20% conversion
- ✕ Any time: MSP churn >30% for 2 months
Pause & Diagnose
- ⚠ Any time: MSP activation rate <20% for 4 weeks
- ⚠ Any time: End-customer trial conversion <20%
- ⚠ M12: AU distributor negotiations stalled
Board Reporting Cadence
Weekly (Division Lead)
- • MSPs onboarded
- • Trials deployed
- • Paid conversions
- • Seat count
- • Partner feedback
Monthly (Exec Team)
- • Active MSPs
- • Total paid seats
- • MRR
- • Conversion rates
- • Distributor pipeline
Quarterly (Board)
- • Milestone status
- • Channel economics
- • Geographic expansion
- • Competitive landscape