Business financial model file
Tutoring Center Financial Model
Budget tutoring space and the paid preparation/delivery roster before assuming every available tutor hour can be sold.
Opening investment and working cash
The original case is one-to-one tutoring, not a group class or a school. Workstations/furniture are investment; curriculum preparation and launch are pre-opening expenses. The selected merchant's actual description limitation retained below is not resolved by this separate financial illustration.
| Cash use | $ |
|---|---|
| CAPEX: Teaching-room furniture | 8,000 |
| CAPEX: Computers/tablets | 8,000 |
| CAPEX: Operating IT equipment | 3,000 |
| Pre-opening: Original curriculum/preparation work | 5,000 |
| Pre-opening: Local screening/professional setup | 2,500 |
| Pre-opening: Opening acquisition | 3,000 |
| Refundable deposit / tied-up cash | 3,200 |
| Opening stock / initial working inputs | 1,500 |
| Reserve: 2 selected fixed-cost months | 28,700 |
| Selected opening cash total | 62,900 |
CAPEX totals $19,000, pre-opening expense $10,500 and working cash $33,400. The deposit and opening stock tie up cash; they are not added again as monthly rent or consumed inputs. The reserve is a chosen fixed-cost buffer, not proof of full funding. Obtain actual installed/tax-inclusive quotes and dated opening payments.
Monthly fixed and variable OPEX
Two 160-hour tutor roles have an original$9,000 loaded budget. Seventy percent of 320 paid hours is 224 teaching hours; preparation and other work use the remaining 96. The$2 materials and$1 usage allowances are additional per taught hour, not another charge for salaried preparation.
| Commitment | $ per month |
|---|---|
| Two tutors: loaded 160-hour rosters | 9,000 |
| Coordination: loaded budget | 2,500 |
| Teaching workspace | 1,600 |
| Base software | 200 |
| Insurance | 250 |
| Marketing | 600 |
| Admin | 200 |
| Total selected fixed cash | 14,350 |
| Item | $ per unit |
|---|---|
| Net collected selling value | 80 |
| Learner materials per taught hour | 2 |
| Incremental online delivery usage | 1 |
| Percentage-only fee allocation (3%) | 2.4 |
| Contribution before scheduled payroll/fixed OPEX | 74.6 |
The percentage fee is an aggregate allocation, with no fixed per-payment charge assumed. Unit contribution is not owner income: the full listed monthly roster and overhead still need coverage.
Capacity, break-even and a lower-sales case
The tutor allocation permits 224 paid one-to-one hours, but actual learner availability is assumed to fit 210. Plan 200. School/exam season, cancellations and overlapping learner requests can leave gaps even when the monthly hour total appears feasible.
For this fixed mix and commitment, whole-unit cash break-even is 193 paid one-to-one teaching hours per month: ($14,350) ÷ $74.6, rounded up. The aggregate capacity is 210 units; it does not establish customer demand or a workable daily sequence.
| Paid units | Net sales $ | Selected result $ |
|---|---|---|
| 160 | 12,800 | -2,414 |
| 193 | 15,440 | 47.80 |
| 200 (planned) | 16,000 | 570 |
| 210 | 16,800 | 1,316 |
At 160 paid hours, both tutors and the workspace remain committed. The retained guide's group/individual decision has a different allocation and cannot be added as costless capacity to this one-to-one plan.
Practical KPI definitions
Use collected teaching revenue/completed paid hours, teaching hours/all paid tutor hours and retained learners from the opening cohort. Group learner-hours, one-to-one tutor-hours and prepaid lessons are not the same units; record make-ups and cancellations explicitly.
No grade/outcome guarantee, finance, income tax or device replacement is assumed. Prepaid lesson balances/refunds and actual settlement/payroll dates require a learner-cohort cash plan.
Method context: SBA business planning. All case prices, wages, cost ratios, reserve and capacity inputs above are original planning assumptions.
The decision to model
An eight-lesson course should be assessed by actual paid enrollment. In our original illustration, each student pays $240 for the course and uses $40 of materials. Against $700 of teaching and room commitments, three students lose $100, four leave $100 and five leave $300.
Use the commitment date to compare choices
Set the enrollment decision before nonrefundable preparation or room costs begin. A later decision after $500 has become unrecoverable uses the remaining avoidable costs; continuing may reduce the loss even though it does not make the original course profitable.
The selected product is listed by the seller as the Tutoring Center Financial Model. The tutoring guide provides the worked course comparison and the distinction between course profit and cash after commitment. Use paid students, actual tutor terms and the complete lesson schedule as the business brief.
Planning guide