Trade Secret Consulting Break-Even: $96K Monthly Revenue Target

Fixed costs $70.4K/mo Salary + overhead

Contribution margin 73% After variable costs

Break-even revenue $96.4K/mo Monthly target

Break-even timing Month 6 Model ramp point

Break-even calculator

Use this to test monthly revenue against direct costs and fixed overhead for trade secret protection consulting.

Lean Base Full

Monthly revenue Revenue is the pool that covers direct costs and fixed overhead. $ Slow month Busy month Variable expenses These are direct costs that rise with client work and deal flow. $ Light direct Heavy direct

Money available to cover fixed costs $299,060 $393,500 revenue - $94,440 variable expenses

Margin ratio

76%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly cost base that contribution margin must cover. $ Lean setup Heavier team

Break-even chart Revenue Total costs

Which trade secret consulting expenses are fixed, variable, or semi-fixed at break-even?

Cost classification

Classify costs before reading the Month 6 break-even result. In the first year, $47.5K monthly core payroll and $22.85K monthly fixed overhead are fixed, while 27% of revenue moves with client work.

Expense	Cost	Break-Even Treatment	Common Mistake
Senior Managing Partner, Senior Associate Attorney, Specialized Paralegal, and Practice Manager payroll	Fixed	Include $47.5K per month in first-year fixed operating overhead.	Treating billable legal payroll as variable because hours are sold to clients.
Premium Office Rent	Fixed	Include $12K per month in the monthly break-even floor.	Moving rent into cash runway only and understating operating break-even.
Professional Liability Insurance	Fixed	Include $3.5K per month as recurring fixed overhead.	Spreading it by client count instead of treating it as a monthly commitment.
Secure CRM & Document Management	Fixed	Include $1.8K per month in fixed overhead for the planning range.	Linking the full platform fee to sales volume without a usage-based driver.
Third-Party Digital Forensics	Variable	Subtract 8% of first-year revenue before calculating contribution margin.	Putting forensic work below the line and overstating gross contribution.
Legal Research Database Access	Variable	Subtract 4% of first-year revenue as modeled service delivery expense.	Assuming every research tool is fixed when the model ties it to revenue.
Client Referral Commissions	Variable	Subtract 10% of first-year revenue before break-even math.	Counting referred revenue at full margin and ignoring commission drag.
Business Development Director	Semi-fixed	Add $110K per year starting Month 13 as a capacity step, not Month 1 overhead.	Loading the role into launch-month break-even and making first-year economics look worse.

How does break-even shift from a lean launch model to a full-service trade secret consulting practice?

Scenario table

Higher revenue lifts the cushion, but each step up also adds payroll and support costs. The break-even point moves with both margin mix and fixed headcount, so signed demand matters before adding senior delivery staff.

Planning figures only; these scenario outputs are assumptions for modeling, not guarantees.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch model	$129.4k	$34.9k	$70.4k	73%	$24.1k	Above break-even, but the cushion is still modest.
Base scaled advisory model	$393.5k	$90.5k	$114.1k	77%	$188.9k	Healthy cushion, but only with signed demand supporting added payroll.
Full-service expanded capacity	$670.3k	$127.3k	$148.7k	81%	$394.2k	Strongest cushion, yet it needs steady demand before the extra capacity pays off.

What breaks the break-even plan for a trade secret protection consulting practice?

Stress test

The plan clears break-even in Year 1, but the cushion is only about $397K a year, or roughly $33K a month. Slower client intake, higher fixed overhead, or a 1-point margin drop can eat that buffer fast.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$1.156M	$397K cushion	Month 6 break-even leaves only a modest buffer.
Revenue shortfall	Year 1 revenue falls 10% on slower client intake.	$1.156M	$241K cushion	A 10% sales dip cuts the cushion by about $155K.
Fixed-cost increase	Fixed overhead rises $5K a month from rent, insurance, and software.	$1.239M	$314K cushion	Overhead creep pushes break-even up by about $82K.
Margin pressure	Contribution margin slips from 73% to 72% as forensics or referral costs rise.	$1.173M	$381K cushion	A 1-point margin drop adds about $16K to break-even revenue.
Combined pressure	Revenue falls 10%, fixed overhead rises $5K a month, and margin drops to 72%.	$1.256M	$142K cushion	Three small misses together wipe out most of the year-one cushion.

What should you verify before you lock the premium office and hiring plan?

Founder checklist

Only lock in the bigger fixed spend if signed retainer prospects are in hand, the three service prices still clear at the stated hours, referral CAC is real, and the Month 6 cash floor of $629K is still covered. Otherwise, break-even gets pushed past the launch plan.

1Retainer BacklogSigned retainers

Do not hire past the Year 1 team until you have signed retainer prospects, because recurring work has to exist before payroll scales.

2Audit Rate$14.0K/job

Check that a trade secret audit still clears $14,000 at 40 hours and $350 per hour, or the core offer loses margin fast.

3Defense Rate$12.5K/case

Confirm rapid response defense prices at $12,500 for 25 hours at $500 per hour, since emergency work has to pay for the short delivery window.

4Retainer Scope$1.5K/mo

Hold ongoing retainer work to 5 hours at $300 per hour, so steady clients add revenue without dragging down realized rates.

5CAC Proof$1.5K CAC

Prove the referral pipeline before trusting a $1,500 customer acquisition cost, because weak lead flow breaks launch math quickly.

6Cash Floor$629K cash

Keep the Month 6 cash floor of $629K in view and stage the $210K setup spend carefully, because the fixed cost base is already heavy before demand ramps.