Investment budget - What do I need to run the business?
Since the first stages of this business only require me writing software and researching infrastructure, it will only cost as much as it takes to keep me productive (personal living expenses). These finances are detailed in the personal budgets I’ve provided previously.
Fixed Assets
Primarily needed for this business, is my computer workstation, which I use to write and test code.
| Assets | Amount in € |
|---|---|
| Computer | € ~2000 |
Current Assets
None, currently.
Financing budget - How much capital do I have?
Personal equity
None in cash, but I do own my workstation computer, and home server that I can use to run real-world test scenarios before we need to launch to cloud infrastructure.
Debt capital
None
Operating budget
In the first year I expect we will run at near 0 cost while we remain under the usage limits for the free tier of the cloud providers we need.
I also expect we won’t generate much or any revenue, at least for the first 6-9 months as I need usage statistics and analytics to decide on pricing.
I estimate that an average paying customer would be willing to pay around €3-€5/mo for the features they need, and will likely cost us anywhere between €0.25-€2/mo/user to host & facilitate their audience traffic. I will have to do more research into cloud compute pricing and how much compute each feature actually requires, to make more accurate expense estimates.
If I am able to surpass private beta testing by 2026-Q4, I estimate we will launch with around 100-250 active users, of whom I would expect around 80-90% to convert to paying customers, based on the fact that these user have had a lot of say and seen their feedback and desires realized, which will create valuable loyalty. It’s not entirely realistic to look at user growth from businesses like Spotify, as these are VC-backed and built by large teams, but if we take the shape of their graphs and apply a conservative 0.01x multiplier, we can probably acquire 10K users in the first year, with around 1K paying creators, generating around €3.000/mo.
Up to 2026-Q4 I expect to use all of the revenue for living expenses and operating costs, and any leftover revenue will be split 50/50 between building a capital reserve, and marketing.
After 2026-Q4 I want to have a more reserved increase in marketing spend every quarter, and dedicate more of the leftover toward building capital.
| Period | Est. Revenue | Est. Expenses |
|---|---|---|
| 2025-Q4 | € 0 | € 0 |
| 2026-Q1 | € 0 | € 0 |
| 2026-Q2 | € 0 | € 0 |
| 2026-Q3 | € 900 | € 900 |
| 2026-Q4 | € 1 .000 | € 3.000 |
| 2027-Q1 | € 6.000 | € 4.000 |
| 2027-Q2 | € 9.000 | € 5.000 |
| 2027-Q3 | € 15.000 | € 6.000 |
| 2027-Q4 | € 20.000? | € 7.000 |
By my estimation, 2027 will be the first year I can no longer make use of the KOR (Kleineondernemersregeling), and will need to set aside money for VAT.