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The following table is an illustrative example of the kinds of costs and revenues associated with running a dojang. The table extends to the right off the side of the page, so scroll within the table to view the entire table. The values given are just examples: the real values vary dramatically depending on where the school is located, the size of the school, etc.



Example Values Example Parameters Notes
ONE-TIME STARTUP COSTS
Deposit to the Landlord for Rent $7,500 We're assuming that the deposit is two-month's rent
Facility renovations (paint, mirrors, shelves, etc.) $10,000
Training equipment (mats, targets, etc.) $10,000
Office equipment (desks, computer, point-of-sale system, etc.) $8,000
After-school equipment and supplies $15,000
Permits and licenses $5,000
Pro-shop startup inventory (uniforms, belts, gear, etc.) $18,500 100 Let's assume $100 per student, at about 150 students
Total One-Time Startup Costs $74,000
ON-GOING MONTHLY COSTS
FACILITY COSTS:
Amount of square feet in your facility  3,000 square feet
Annual square footage cost for retail spaces in your area $15 dollars per square feet per year
Annual lease cost of your facility  45,000 annual lease cost = square feet x dollars per square feet
Monthly lease cost  $3,750 = annual least cost divided by 12 months
Utilities (electric, gas, water, phone, internet, etc.) $800
Insurance $1,500
Janitorial Service and Supplies $2,000
VEHICLE COSTS (for the after-school program vehicles)
Number of vehicles (vans, small busses, limos) 5
Purchase cost of a typical used vehicle  20,000
Monthly auto payment per vehicle  450
Monthly auto payments (for all vehicles) $2,250
Annual taxes & fees per vehicle  1,000
Monthly taxes & fees (for all vehicles) $417
Annual repair & maintenance costs per vehicle  2,000
Monthly repair & maintenance costs (for all vehicles) $833
Monthly fuel costs per vehicle  200
Monthly fuel costs (for all vehicles) $1,000
NON-FACILITY COSTS:
Marketing, website, etc. $400
Accountant  $400
Point-of-Sale monthly cost $1,081 3% Here I'm using 3% of revenue as point-of-sale cost
Federal, State & Local taxes on revenue $5,407 15% Here I'm using 15% of revenue as taxes
Total Monthly Non-Payroll Costs: $19,839
PAYROLL COSTS:
Owner Gross Annual Income  35,000 Let's assume this school owner is grossing $35K per year in personal income
Owner Gross Monthly Income $2,917
Part-time Taekwondo Instructors
Hourly wages for taekwondo instructors $12 hourly income
Total hours per week, for all instructors combined 80 total hours per week, for all instructors combined
Monthly wages to instructors (before related payroll expenses) $4,160 the instructors' gross pay
Monthly wages to instructors (including RPE such as payroll taxes) $5,408 1.3 let's assume a 1.3 multiplier for Related Payroll Expenses (RPE) such as payroll taxes
Part-time After-Care Teachers
Hourly wages for after-care teachers $14 hourly income
Total hours per week, for all teachers combined 80 total hours per week, for all teachers combined
Monthly wages to teachers (before related payroll expenses) $4,853 the teachers' gross pay
Monthly wages to teachers (including RPE such as payroll taxes) $6,309 1.3 let's assume a 1.3 multiplier for Related Payroll Expenses (RPE) such as payroll taxes
Part-time Front-Desk Worker
Hourly wages for front-desk worker $11 hourly income
Total hours per week, for all front-desk workers combined 20 hours per week
Monthly wages to front desk (before related payroll expenses) $953 the front-desk workers' gross pay
Monthly wages to front desk (including RPE such as payroll taxes) $1,239 1.3 let's assume a 1.3 multiplier for Related Payroll Expenses (RPE) such as payroll taxes
Total Monthly Payroll Costs: $15,873
Total All Monthly Costs $35,712
ON-GOING MONTHLY REVENUE (during the school year)
REGULAR CLASSES
Number of regular students (evening and weekend students) 150 number of students
Monthly tuition price to students $125
Monthly income from regular tuitions $18,750 number of students times tuition
Percentage of students who color-belt test each month 20%
Price to students for color-belt tests $35
Monthly income from regular belt testing $1,050
Percentage of students who black-belt test each year 10%
Price to students for black-belt testing $300
Monthly income from black-belt testing $375 divide by 12 months in a year
Monthly pro-shop revenue per regular student 100 let's assume every student spends $100 per year on uniforms or other supplies
$1,250 number of students x annual spend / 12 months in a year
Monthly Income from Regular Students $21,425
AFTER-SCHOOL PROGRAM
Number of after-school students 35 number of students
Monthly tuition price to after-care students $400
Monthly income from after-care tuitions $14,000 number of students times tuition
Percentage of students who color-belt test each month 20%
Price to students for color-belt tests $35
Monthly income from regular belt testing $245
Percentage of students who black-belt test each year 10%
Price to students for black-belt testing $300
Monthly income from black-belt testing $88 divide by 12 months in a year
Monthly pro-shop revenue per after-care student 100 let's assume every student spends $100 per year on uniforms or other supplies
$292 number of students x annual spend / 12 months in a year
Monthly Income from After-Care Students $14,624
Total Monthly Revenue during the School Year $36,049
Total Monthly Profit $337
How many months it will take to pay-back the startup cost: 219.6
How many years it will take to pay-back the startup cost: 18.3
ON-GOING MONTHLY REVENUE (summer camp)
During the summer, you'll need to make up a monthly shortfall of  $14,624
that was coming from your school-year after-care program
Monthly price to students for summer camp $700
Number of students you'll need in summer camp 21

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