Figure #2: Break Even
(Number of Students
As in Figure #1, your target revenue is
$2600.00 per month. This allows you to cover your
expenses of $600.00 per month, while providing your
target monthly salary of $2000.00.
Assume you can maintain an average full time enrollment
of 200 students per month.
2. However, after checking into the local market, you
are confident that you could comfortably charge $20.00
per month. Let's see what happens to the revenue
Are you beginning to see how the relationship between
pricing, and the number of students can work an your
3. O.K., after thorough research into the local market,
you've determined that schools offering what you intend
to offer are charging students $30.00. How will that
impact your revenue stream?
you're really in business, Kiddo!