How the numbers work.
WHAT REVENUE COMES FROM
Fees Registration and admission charges Materials and uniforms, where applicable Additional services
WHAT DRIVES IT
Enrolment numbers and fee levels.
WHAT COSTS DOMINATE
Staff, by a substantial margin Premises Utilities, particularly power Materials
WHY STAFF DOMINATE
Teaching is labour-intensive and cannot be substantially automated.
WHAT DETERMINES PROFITABILITY
The ratio of students to teaching staff Capacity utilisation Fee collection
WHY CAPACITY UTILISATION MATTERS SO MUCH
Costs are largely fixed once a class runs.
WHAT THAT IMPLIES
A class at half capacity may lose money while a full one is profitable.
WHAT TO CALCULATE
The break-even enrolment per class.
HOW
Cost of running the class divided by the fee.
WHAT TO ESTABLISH
Minimum viable class size.
WHAT TO DO ABOUT CLASSES BELOW IT
Combine, defer, or accept the loss deliberately.
WHAT THE CASH PATTERN IS
Fees arriving at term boundaries, costs continuing throughout.
WHY THAT MATTERS
It produces predictable cash troughs.
WHAT TO FORECAST
Cash, by month, across the year.
WHAT TO BUILD
A reserve covering the troughs.
WHAT TO WATCH
Fee arrears, which accumulate silently.
