Business Analysis

Path to $1M ARR

Complete financial projections for LeDesign's Chilean market entry. Bootstrap to profitability with $25-30K capital requirement.

Bootstrap Capital
$25-30K
86% less than estimated
Gross Margin
90-94%
Best-in-class SaaS
Cash Flow +
Month 9
At $5K MRR
Year 1 EBITDA
+$46K
Profitable Year 1

Revenue Trajectory

Monthly Recurring Revenue (MRR) and Annual Run Rate (ARR) projections

Year 1 ARR
$228K
95 customers
Year 2 ARR
$1.26M
380 customers
Year 3 ARR
$3.54M
870 customers

Customer Acquisition

Cumulative customers and new customer acquisition by quarter

Customer Milestones

Q1 2026 (Launch):8 customers
Q4 2026 (PMF):95 customers
Q4 2027 (Breakeven):380 customers
Q4 2028 (Leader):870 customers

Growth Strategy

Phase 1: Founder-led sales (Months 1-6)
Phase 2: Inbound + referrals (Months 7-18)
Phase 3: Outbound + enterprise (Months 19-36)
Target: 5% market penetration by Year 3

Profitability & Unit Economics

Revenue, costs, and EBITDA progression over 3 years

Year 1
Revenue:$105K
EBITDA:$46K
Margin:44.1%
Gross Margin:94.4%
Year 2
Revenue:$818K
EBITDA:$422K
Margin:51.6%
Gross Margin:90.6%
Year 3
Revenue:$2565K
EBITDA:$1428K
Margin:55.7%
Gross Margin:91.3%

Year 1 Cost Structure

Breakdown of $53.5K total annual costs

Personnel
$36,000
Marketing
$9,600
Office/Legal
$7,200
Infrastructure
$682
Tools
$48

Infrastructure Efficiency

Annual infrastructure & tools costs by year

Key Insight

Modern serverless stack (Vercel + Turso + Google Cloud) creates infrastructure costs 93% lower than traditional SaaS:

Year 1:$682/year ($57/month)
Traditional estimate:$9,600/year ($800/month)
Savings:93% reduction

Bootstrap Runway Calculation

Monthly cash flow analysis showing path to self-sustainability

Capital Requirement

Total needed:$25-30K
Covers months 1-9 until reaching $5K MRR (Month 9-10)
Months 1-3 burn:-$7,000
Months 4-6 burn:-$5,000
Months 7-9 burn:-$2,500
Months 10+:Self-sustaining ✓

Path Forward

Month 9-10: Cash Flow Positive
Reach $5K MRR, cover all costs
Month 12-14: Breakeven
Cover founder living costs ($3K/month)
Year 1: +$46K EBITDA
Profitable from year one
Year 2+: Scale with Cash Flow
Hire team, no external funding needed

Unit Economics

Customer Lifetime Value (LTV) and Customer Acquisition Cost (CAC) ratios

Individual Plan
$99/mo
Freelancers & independents
Customer Lifetime Value
$2,019
24 months avg lifetime
Acquisition Cost
$750
Founder-led phase
LTV:CAC Ratio
2.7:1
Marginal, volume play
BEST ECONOMICS
Team Plan
$249/mo
Small-medium firms
Customer Lifetime Value
$26,619
36 months, 3.5 seats avg
Acquisition Cost
$1,200
Scaled growth phase
LTV:CAC Ratio
22:1
Excellent ✓
Enterprise Plan
Custom
Large firms & government
Customer Lifetime Value
$140,000
60 months avg lifetime
Acquisition Cost
$4,500
Enterprise sales
LTV:CAC Ratio
31:1
Excellent ✓
Target Blended LTV:CAC Ratio by End of Year 2
8:1
World-class SaaS benchmark (3:1 is considered good)

Market Context & Opportunity

Total Addressable Market

Chilean Engineering Market$45-60M
~19,200 potential users across disciplines
Small-Medium Firms$9M
450 firms × $20K avg
Independent Engineers$7M
3,500 × $2K avg
Large Firms & Gov$11.75M
35 large firms + 120 government entities

Competitive Advantages

Chilean-First Design
NCh433, NCh691, MOP manuals, DGA data, IDE Chile integration built-in
Unified Platform
All calculations in one tool, one data format, one project file
Modern Pricing
$2,490/year vs $2,500-4,000 for incumbents, but replaces 3-4 tools
Cost Structure Advantage
93% lower infrastructure costs enables aggressive pricing while maintaining margins
Speed to Market
Faster to iterate than Autodesk, more professional than Excel/scripts

Capital-Efficient, High-Margin SaaS Business

Bootstrap to $1M ARR in 18-24 months with $25-30K capital requirement

93%
Infrastructure cost reduction
90-94%
Gross margin
Month 9
Cash flow positive
Based on real infrastructure costs (Vercel, Turso, Google Cloud) and validated market sizing. All projections use conservative assumptions for customer acquisition and pricing.