ADR-005 — Bootstrap $1k + reinvest model

Status: Accepted · Date: 2026-06-02

Context

The decisive constraint is unit economics: the value of a customer must exceed acquisition cost. The cost side is research-checked, but conversion, CAC, retention and WTP are [ASSUMPTION] — unknowable without real buyers. The cheapest way to learn the truth is a small live launch, not a large up-front raise into an unvalidated model.

Decision

Start on $1,000, take no salary, reinvest everything. Three self-funding phases: - Phase 1 — Prove it (Weeks 1–8, $1,000): personally make 1–3 stories; launch organic to network + parenting/homeschool communities. Goal: make the $1k back; prove preview→paid ≥6% and contribution > CAC. - Phase 2 — Spin it up (Months 2–6, reinvested revenue): catalog + small paid test; launch school-year plan. Goal: $1k → $10k/mo. - Phase 3 — Scale reach (Months 6–18, rolled profit): full NGSS G1–2 catalog; scale organic/viral/influencer + disciplined paid. Goal: $10k → $100k/mo.

The one rule: contribution > CAC. Never take profit to grow.

Rationale

$1,000 is enough if and only if customer value beats acquisition cost — so the bootstrap launch is the validation experiment (~8 weeks, ~$1k). It captures the summer-slide window, avoids betting capital on unproven numbers, and forces the discipline the model rewards: cheap organic CAC + high plan attach. The three cases prove the point — Pessimistic dies because $70 CAC > ~$27 contribution; Realistic/Best win because contribution beats CAC.

Source / evidence

• Business-Plan.md §1, §3, §4, §9 + revenue-model.html
• Three-case table, driver table → Business model
• Cost [FACT]-ish; conversion/CAC/retention/WTP [ASSUMPTION] (pilot-validated)