Year 1 Budget Breakdown

$250,000

Clear allocation strategy with a proven path to self-sustainability in 9-12 months

$990K
Year 1 Revenue Projection
67%
Net Profit Margin
Month 9
Break-Even Point
25-35
Clients Served Year 1

Funding Allocation Breakdown

$250K
Total Funding
Founder Compensation
40%
$100,000
Marketing & Business Development
25%
$62,500
Professional Services
20%
$50,000
Technology & Infrastructure
10%
$25,000
Operations
5%
$12,500

Detailed Budget Breakdown

Every dollar allocated to revenue-generating activities, professional credibility, and operational excellence

1. Founder Compensation

$100,000

Full-time commitment for both founders enables accelerated client acquisition, implementation quality, and market presence. $50K per founder is below market rate, demonstrating capital efficiency and commitment.

Marisabel Escalona (Co-Founder) $50,000
Operations, client discovery, cybersecurity architecture, business development
Juan (Co-Founder) $50,000
Technical implementation, systems integration, data analytics, government contracting

2. Professional Services & Compliance

$50,000

Professional infrastructure required to work with corporate clients and government entities. Insurance, legal protection, and certifications establish credibility and unlock high-value contracts.

Legal Services $18,000
Business formation ($5K), contract templates ($8K), IP protection ($5K)
Insurance $12,000
Professional liability E&O ($7K), cyber liability ($3.5K), general liability ($1.5K)
Accounting & Bookkeeping $8,000
CPA services ($5K), bookkeeping software ($3K)
Business Certifications $8,000
VOSB ($2K), WOSB ($2K), Hispanic-owned ($1.5K), industry certifications ($2.5K)
Professional Memberships $4,000
Chambers, industry associations, networking organizations

3. Marketing & Business Development

$62,500

Multi-channel marketing strategy to generate 90-120 qualified leads and acquire 25-35 clients in Year 1. Combines digital advertising, content marketing, events, and direct outreach.

Brand Development & Website $12,000
Professional website ($8K), brand identity ($2.5K), content tools ($1.5K)
Content Marketing & Thought Leadership $10,000
Blog content ($4K), video production ($3K), downloadable resources ($2K), LinkedIn Premium ($1K)
Paid Digital Advertising $18,000
LinkedIn ads ($10K), Google ads ($6K), Facebook/Instagram ($2K) - Expected 9-12 clients
Events, Networking & Community $12,500
Event sponsorships ($5K), hosted workshops ($4K), speaking engagements ($1.5K), partnerships ($2K)
Sales Enablement & CRM $7,000
CRM system ($3K), sales collateral ($3K), proposal software ($1K)
Direct Outreach & Lead Gen $3,000
LinkedIn outreach, email campaigns, lead research

4. Technology & Infrastructure

$25,000

Robust technology infrastructure for secure, reliable client implementations. Cloud hosting, AI model access, and cybersecurity tools essential for professional service delivery.

Cloud Infrastructure & Hosting $6,000
AWS/GCP/Azure credits ($4K), website hosting ($500), email platform ($1.5K)
AI Model API Credits $8,000
OpenAI GPT-4 ($3K), Anthropic Claude ($3K), open-source model hosting ($2K)
Development Tools & Software $6,000
Development platforms ($2.5K), security & monitoring ($2K), productivity tools ($1.5K)
Cybersecurity & Compliance $3,000
Penetration testing, vulnerability scanning, data encryption
Backup & Disaster Recovery $2,000
Automated backups, disaster recovery planning, data redundancy

5. Operational Expenses

$12,500

Basic operational costs to run the business professionally with co-working space for client meetings and focused work environment.

Office & Co-Working Space $6,000
Professional meeting space and focused work environment ($500/month)
Communication & Utilities $2,000
Phone systems, mobile plans, internet connectivity
Travel & Transportation $2,500
Client site visits, networking events, business development
Office Supplies & Equipment $2,000
Hardware upgrades, monitors, peripherals, supplies

Year 1 Revenue Projections: Path to $990K

Conservative revenue forecast based on three revenue streams: Discovery ($285K), Implementation ($530K), and Managed Services ($175K)

Q1 (Months 1-3): Foundation $76,000
8%
Discovery engagements: 2 × $18,000 $36,000
Implementation projects: 1 × $40,000 $40,000
Managed services $0
Q2 (Months 4-6): Momentum $219,000
22%
Discovery engagements: 4 × $18,000 $72,000
Implementation projects: 3 × $45,000 $135,000
Managed services: 2 clients ramping $12,000
Q3 (Months 7-9): Scaling $350,000
35%
Discovery engagements: 5 × $20,000 $100,000
Implementation projects: 4 × $50,000 $200,000
Managed services: 5 clients active $50,000
Q4 (Months 10-12): Self-Sustainability $345,000
35%
Discovery engagements: 4 × $20,000 $80,000
Implementation projects: 3 × $55,000 $165,000
Managed services: 8 clients active $100,000

Year 1 Totals

Total Revenue
$990,000
Total Expenses
$330,000
Net Profit
$660,000
Profit Margin
67%

Path to First 10 Clients & Self-Sustainability

Month-by-month plan to achieve profitability and serve 25-35 clients in Year 1

Months 1-2: Launch & Foundation
2-3 Discovery Clients Signed
Website live, marketing campaigns launched, outreach to personal networks, first workshops scheduled
Months 3-4: Early Traction
5-7 Total Clients
Case studies from first implementations, paid ads optimized, events and speaking engagements, community visibility increasing
Months 5-6: Momentum Building
10-12 Total Clients
Referrals beginning, sector-specific playbooks complete, marketing content gaining traction, partnership channels active
Months 7-9: Scaling Machine
18-25 Total Clients + Break-Even
Marketing channels optimized, referral engine strong, brand recognition in Houston market, recurring revenue growing. Monthly profitability achieved by Month 9.
Months 10-12: Self-Sustaining
25-35 Total Clients + $40-60K MRR
Monthly profitability maintained, pipeline full for Year 2, team expansion planning, Series A positioning. $480K-$720K annual revenue run rate.

Risk Mitigation & Alternative Scenarios

Conservative planning with multiple contingencies to ensure success even if revenue is slower than projected

Base Case: $990K Year 1 Revenue

Assumptions:

  • 25-35 clients served
  • 15 discovery engagements @ $19K avg
  • 11 implementation projects @ $48K avg
  • 8-12 managed services clients by EOY

Outcome: $660K net profit (67% margin), fully self-sustaining by Month 9

Conservative Case: 50% of Projected ($500K)

Impact:

  • Still covers $250K fund investment
  • $250K profit covers additional operating costs
  • Breaks even or slightly profitable
  • Proves model, just slower timeline

Mitigation: Reduce marketing spend, focus on highest-margin managed services, extend timeline by 3-6 months

Break-Even Analysis

Monthly Burn Rate:

  • Founder salaries: $8,300/month
  • Operating expenses: $4,200/month
  • Total: $12,500/month

Revenue needed to break even: $18,000/month (at 70% margin)

Break-even point: Month 7-9 with recurring revenue + project revenue

Milestones That Trigger Self-Sustainability

Milestone 1 (Month 3-4)
First 5 Clients
Validates product-market fit
Milestone 2 (Month 5-6)
First Case Study with ROI
Sales tool for future clients
Milestone 3 (Month 6-7)
First Referral Client
Reduces customer acquisition cost
Milestone 4 (Month 8-9)
5+ Managed Services Clients
Recurring revenue model validated
Milestone 5 (Month 9-10)
Monthly Profitability
Self-sustaining operations
Milestone 6 (Month 11-12)
$50K+ MRR
Foundation for Year 2 scaling

What Success Looks Like: End of Year 1

Financial Metrics

  • Revenue: $800K - $1M
  • Net profit: $500K - $700K
  • MRR: $40K - $60K
  • Clients served: 25-35
  • Client retention: >90%

Operational Metrics

  • Case studies documented: 8-12
  • Sector playbooks: 4-6
  • IP frameworks: 3-5
  • Referral rate: 30-40%
  • Customer satisfaction: >4.5/5

Market Position

  • Brand recognition in Houston
  • Speaking engagements: 6-10
  • Media mentions: 5-10
  • Partner relationships: 10-15
  • Community leadership established

This isn't charity. This isn't risky R&D.
This is economic justice backed by proven methodology, experienced founders, and a clear path to profitability.

$250,000 protects $17 billion in Houston Hispanic professional services contribution
That's a 68,000x community impact multiple
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