Operating Budget & Compensation Plan (2026) 

This document summarizes the operating budget, owner compensation policy, and hiring triggers for Ninja-360 Digital Media LLC for 2026. It incorporates the company’s latest assumptions about marketing spend, debt service and cost structure while providing lender-friendly clarity on how the owner will be paid and how hiring decisions are made. 

Overview 

The budget is built on the following assumptions: 

• Marketing: $1,000 per month for paid advertising and retargeting (Google/Meta). 

• Debt service: $1,500 per month combined for the truck, trailer, and equipment loans. 

• Base overhead: $1,500 per month for insurance, software, phone/internet, fuel and general administrative expenses. 

• Cost of goods sold (COGS): 25 % of revenue. This covers subcontracting, editing and higher travel/production costs. 

These three fixed cost categories (marketing, debt service and overhead) sum to a $4,000 per month baseline operating expense before owner compensation.

Revenue Scenarios 

The table below shows monthly revenue scenarios based on the company’s post-funding sales forecast
【557:2†Ninja360_One_Page_Funding_Snapshot (1).pdf†L10-L14】, COGS at 25 %, fixed overhead of $4,000 (marketing + debt + base overhead), and the cash available before the owner draw. All figures are in US dollars per month. 

Break-Even

Using the assumptions above, the break-even revenue to cover fixed costs and a $2,000 monthly draw is roughly $7,667. Covering a $4,000 monthly draw requires approximately $10,333 in monthly revenue. 

Owner Compensation Policy (Flex Model)
To ensure liquidity while rewarding the owner for growth, Ninja-360 uses a flexible compensation policy:

1. Q1 Ramp:
The owner draw is set at $2,000 per month during the first quarter (ramp phase). This minimum draw provides basic living coverage while limiting early cash outflows.

 
2. Q2 + Target: 

The draw increases toward the target range ($4,000–$4,333 per month) only when monthly cash collections consistently cover: 

– Cost of goods sold (25 % baseline); 

– Fixed operating expenses (base overhead, marketing, and debt service); 

– Debt service (the $1,500 monthly payment); 

– Marketing (the $1,000 monthly spend); 

– A one-month operating reserve.

 
3. Variable Pay Lever:
Once the one-month reserve is funded, the owner draw may include a variable component equal to 15 % of the monthly gross profit (revenue minus COGS). This variable component is capped until the reserve is fully funded and coverage is sustained.

4. Protection Rule:

If cash collections fall below coverage in any month, the owner draw automatically reverts to the Q1 ramp amount until coverage is restored and reserves are again fully funded.

Hiring Plan & Triggers

 
Ninja-360 uses mechanical triggers tied to trailing revenue and cash reserves to determine when to add personnel. This protects the business from over-hiring and ensures that new costs only occur when there is sufficient revenue.

Trigger 1 — Contractor Editor/Admin Support
• Condition: The trailing three-month average revenue is ≥ $11,400 per month (the medium forecast), and the company has a one-month operating reserve funded.
• Action: Engage part-time contractors for editing, administrative tasks, or social media support. Because these costs are incurred only when there is billable work, they are treated as COGS and scale with revenue.
Trigger 2 — Field Assistant/Additional Operator
• Condition: The trailing three-month average revenue is ≥ $13,600 per month (the high forecast) and the company has a two-month operating reserve funded. Alternatively, if project lead times consistently exceed 14 days, indicating production capacity is constrained. 

• Action: Add a part-time assistant to increase on-site production capacity. This role may start as a contractor within COGS or convert to payroll as revenue stabilizes. Reserve & Cash Discipline 

• Reserve Funding:
Contribute 10 % of monthly revenue to a cash reserve until the reserve equals at least one month of fixed costs ($4,000). Additional reserve funding may be required before hiring additional personnel. 

• Hiring Deferral: If reserves fall below the one-month (or two-month) threshold required for the respective trigger, hiring decisions are postponed until the reserve requirement is met. 

Summary: 

This operating budget and compensation plan ensure that Ninja-360 can meet debt obligations, invest in marketing, pay the owner appropriately, and expand the team when revenue and reserves justify it. By establishing clear thresholds and a flexible draw policy, the business maintains financial stability during growth and provides lenders with confidence that the company is managing cash responsibly.