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Business

QUESTION 9

What's the wedge — and how does the model resolve?

The ask

One model with a provable wedge that makes significant revenue during the proof period and puts value in customers' hands fast. Then the model resolves toward EBITDA.

NOTE:

This page needs clear worked examples.

What you submit

01

Wedge one-pagerwhat you charge in the proof period, the revenue it generates, and time-to-value measured in days or weeks.

02

EBITDA rampHow will EBITDA grow after the wedge period

03

Closed doorswhat you said no to and why; be decisive about the one thing you're doing and the three you're not.

04

Stickiness readwhether customers renew every year because it's sticky, or it's a one-time thing and anyone's game.

05

Five-year vision paragraphshowing a compounding path, not a bigger opening bet.

Great looks like:

A gross-profitable wedge period with a clear path to EBITDA

Example · Aux Insights

Wedge: A $25K audit requiring roughly ten hours, leading into a $400K two-month engagement.
Profit expansion: Early projects delivered with high-cost temp labor later replaced by full time staff.

Go deeper

The thin wedge

De-scope to a wedge; a useful target is under $100K to profitability.

Start with the P&L

How fixed costs shrink as a percentage of revenue.

The Rebel's Flywheel

Double down on winners and cut losers—the resolution loop.

Previous · 8b

How does revenue compound?

Next · 10

Is this the business you were meant to build?