Music School input evidence register
50 financial inputs with their assumptions, calculation bases and cited sources.
Read the supported claim, observation period, geography and units together. A source access date records when it was consulted. A model assumption identifies a selected amount or target; a calculated result follows from those inputs and does not establish observed demand or a quoted opening budget.
Case updated October 7, 2026. These notes accompany the complete case methodology and source register.
Dataset use notice: no Creative Commons license or DOI is asserted. Referenced material remains subject to its publisher’s terms.
These notes explain the opening budget, annual forecast and calculator assumptions. Linked sources provide the support described in each note; they do not necessarily confirm the selected amounts. Check scenario assumptions against local quotes and operating records.
- Model assumption
Applies to: Total opening budget · Lower opening budget · Upper opening budget
Authored opening scopes, not national estimates: base 185000 USD comprises 100000 USD in setup/deposits/preopening activity/contingency and an 85000 USD reserve. Lower 145000 USD assumes an already divided suitable site, 80000 USD setup and 65000 USD reserve; higher 275000 USD allows substantially greater acoustic/access work, instruments and a 100000 USD reserve. Four rooms remain the base scope. Exact landlord, contractor, insurance and hiring quotes can change all three. Building purchase and ground-up work are excluded.
- Model assumption
Applies to: Teaching-room, acoustic and access work
Selected 35000 USD for four instructional-room partitions, acoustic isolation allowance, access and ordinary electrical/safety alterations in a suitable existing site. It is unquoted; surface sound absorption alone does not prove adequate isolation, ventilation or legal use. SBA and DOJ supply permission/access context, not a build-out price.
- Model assumption
Applies to: Instruments, teaching equipment and furniture
Selected 23000 USD room basket for portable weighted keyboards, an electronic drum kit, teaching guitars, modest amplifiers/headphones, music stands, storage, stools and reception furniture including allowance for landed costs. The 529.99 USD advertised digital piano is only an item example; no complete equipment quote is implied.
- Model assumption
Applies to: Lease deposits and preopening rent
Selected 15000 USD for deposits and pre-opening rent before operating month one. Base annual rent is independently selected at 36000 USD for 1500 sq. ft. at 24 USD/sq. ft./year; deposits remain an opening cash use, not a second annual expense. No local lease or CAM quote was obtained.
- Model assumption
Applies to: Permissions, legal, insurance setup and recruitment
Selected 6000 USD for business setup, permission work, contract advice, insurance placement and recruitment checks. Scope and fees are unquoted and jurisdiction dependent. No childcare or site exemption is assumed.
- Model assumption
Applies to: Billing, website, office and security setup
Selected 5000 USD for scheduling/billing setup, website, office/security equipment and initial configuration. Square supports payment and booking capabilities but not this combined quote; recurring systems cost belongs in overhead once.
- Model assumption
Applies to: Paid onboarding, initial materials and launch outreach
Selected 11000 USD for pre-opening teacher onboarding, paid setup work, launch outreach and initial teaching materials. This covers month-zero work, separate from the paid operating roster and later recurring marketing.
- Model assumption
Applies to: Setup contingency
Selected 5000 USD unspent setup contingency for identified quote variation. It is not the operating reserve and is not charged again in payroll or annual expenses. A larger fit-out surprise requires funding changes rather than using both allowances twice.
- Model assumption
Applies to: Operating cash reserve
Selected 85000 USD cash held at opening. The shared base ramp has a peak operating deficit of about 61033 USD at month nine, leaving about 23967 USD under prompt collection and already paid setup. The independently tested slower path exceeds it. This is cash funding, not another operating expense or a cash guarantee; refunds, receivable delay, tax, debt and capital replacement need dated schedules.
- Model assumption
Applies to: Revenue (Year 1)
Authored first-year revenue sums twelve average enrolled-place months starting with 45% of 180 mature places and adding five percentage points monthly until full enrollment in month twelve. Each monthly place count multiplies 190 USD tuition. The corresponding normalized shared calculator starts with 30 reference equivalents/day and 43.879908 USD/reference equivalent × 6 × 4.33; the less-than-one-cent monthly rounding difference is not extra revenue. Annual revenue rounds once to whole USD. No observed conversion, retained cohort, seasonality or acquisition rate supports this path.
- Model assumption
Applies to: Student-linked materials and collection costs (Year 1)
Authored direct cost is 5% of unrounded annual tuition revenue, rounded half up once to whole USD. The share funds selected processing plus student-linked printing/materials and small consumables. Actual payment channel, invoice size and inclusions must replace it. Square rates explain fee context only; committed teacher and owner pay are in payroll and are not deducted again per lesson. Discounts/refund credits reduce tuition yield once, not this cost share again.
- Model assumption
Applies to: Paid instructors, working owner and substitute cover (Year 1)
Authored annual paid labor: four employees × 25 paid hours/week × 52 paid weeks × 30 USD/hour = 156000 USD gross, plus 60000 USD working-owner compensation. A selected 20% employer-cost allowance on the combined 216000 USD produces 259200 USD; another 240 paid substitute clock-hours at an assumed all-in 40 USD/hour adds 9600 USD, for 268800 USD. Every employee offers at most 20 contact hours and has five paid hours for handoffs/preparation/records; the owner offers at most 20 teaching hours within a 40-hour week. Fifty-two paid weeks fund the four nonteaching closure weeks as well as teaching weeks. Substitute hours include transition time; availability, instrument qualifications and management backup remain unverified. O*NET's broader occupation median and IRS statutory tax components do not verify local pay, owner legal treatment or the full allowance. Years four/five compound the complete unrounded base by 3%/year, then round half up to whole USD.
- Model assumption
Applies to: Year-round premises, systems and operating overhead (Year 1)
Authored overhead: 36000 USD base rent (1500 sq. ft. × selected 24 USD/sq. ft./year), 3600 property charges, 6000 utilities, 2400 insurance, 3600 systems, 7200 marketing, 2400 cleaning, 2400 instrument maintenance and 2400 professional/administrative costs = 66000 USD/year. No local rent, property-charge, insurance or operating quote is claimed. The first three years retain this base; years four/five compound 3% from the unrounded base and round once to whole USD. Maintenance is recurring operating upkeep; capital instrument replacement is excluded and requires a separate cash allowance.
- Model assumption
Applies to: Revenue (Year 2)
Authored full-year revenue is 180 active weekly-lesson places × 190 USD net monthly tuition × 12 = 410400 USD. One place promises 48 private 30-minute lessons over twelve months, not a new charge on every lesson day. There is no second attendance multiplier, registration, retail, rental, camp, group-class or event revenue. Sources establish bounded offers and calendars only, not this roster or earned yield.
- Model assumption
Applies to: Student-linked materials and collection costs (Year 2)
Authored direct cost is 5% of unrounded annual tuition revenue, rounded half up once to whole USD. The share funds selected processing plus student-linked printing/materials and small consumables. Actual payment channel, invoice size and inclusions must replace it. Square rates explain fee context only; committed teacher and owner pay are in payroll and are not deducted again per lesson. Discounts/refund credits reduce tuition yield once, not this cost share again.
- Model assumption
Applies to: Paid instructors, working owner and substitute cover (Year 2)
Authored annual paid labor: four employees × 25 paid hours/week × 52 paid weeks × 30 USD/hour = 156000 USD gross, plus 60000 USD working-owner compensation. A selected 20% employer-cost allowance on the combined 216000 USD produces 259200 USD; another 240 paid substitute clock-hours at an assumed all-in 40 USD/hour adds 9600 USD, for 268800 USD. Every employee offers at most 20 contact hours and has five paid hours for handoffs/preparation/records; the owner offers at most 20 teaching hours within a 40-hour week. Fifty-two paid weeks fund the four nonteaching closure weeks as well as teaching weeks. Substitute hours include transition time; availability, instrument qualifications and management backup remain unverified. O*NET's broader occupation median and IRS statutory tax components do not verify local pay, owner legal treatment or the full allowance. Years four/five compound the complete unrounded base by 3%/year, then round half up to whole USD.
- Model assumption
Applies to: Year-round premises, systems and operating overhead (Year 2)
Authored overhead: 36000 USD base rent (1500 sq. ft. × selected 24 USD/sq. ft./year), 3600 property charges, 6000 utilities, 2400 insurance, 3600 systems, 7200 marketing, 2400 cleaning, 2400 instrument maintenance and 2400 professional/administrative costs = 66000 USD/year. No local rent, property-charge, insurance or operating quote is claimed. The first three years retain this base; years four/five compound 3% from the unrounded base and round once to whole USD. Maintenance is recurring operating upkeep; capital instrument replacement is excluded and requires a separate cash allowance.
- Model assumption
Applies to: Revenue (Year 3)
Authored mature year repeats 180 active weekly-lesson places × 190 USD × 12 = 410400 USD, rather than inferring growth from national employment or an unmeasured waitlist. Tuition is a modeled net yield after discounts/refund credits before the separately charged processing/materials allowance; an accountant must define recognition and deferred-service balances under the actual contract.
- Model assumption
Applies to: Student-linked materials and collection costs (Year 3)
Authored direct cost is 5% of unrounded annual tuition revenue, rounded half up once to whole USD. The share funds selected processing plus student-linked printing/materials and small consumables. Actual payment channel, invoice size and inclusions must replace it. Square rates explain fee context only; committed teacher and owner pay are in payroll and are not deducted again per lesson. Discounts/refund credits reduce tuition yield once, not this cost share again.
- Model assumption
Applies to: Paid instructors, working owner and substitute cover (Year 3)
Authored annual paid labor: four employees × 25 paid hours/week × 52 paid weeks × 30 USD/hour = 156000 USD gross, plus 60000 USD working-owner compensation. A selected 20% employer-cost allowance on the combined 216000 USD produces 259200 USD; another 240 paid substitute clock-hours at an assumed all-in 40 USD/hour adds 9600 USD, for 268800 USD. Every employee offers at most 20 contact hours and has five paid hours for handoffs/preparation/records; the owner offers at most 20 teaching hours within a 40-hour week. Fifty-two paid weeks fund the four nonteaching closure weeks as well as teaching weeks. Substitute hours include transition time; availability, instrument qualifications and management backup remain unverified. O*NET's broader occupation median and IRS statutory tax components do not verify local pay, owner legal treatment or the full allowance. Years four/five compound the complete unrounded base by 3%/year, then round half up to whole USD.
- Model assumption
Applies to: Year-round premises, systems and operating overhead (Year 3)
Authored overhead: 36000 USD base rent (1500 sq. ft. × selected 24 USD/sq. ft./year), 3600 property charges, 6000 utilities, 2400 insurance, 3600 systems, 7200 marketing, 2400 cleaning, 2400 instrument maintenance and 2400 professional/administrative costs = 66000 USD/year. No local rent, property-charge, insurance or operating quote is claimed. The first three years retain this base; years four/five compound 3% from the unrounded base and round once to whole USD. Maintenance is recurring operating upkeep; capital instrument replacement is excluded and requires a separate cash allowance.
- Model assumption
Applies to: Revenue (Year 4)
Authored year four selects 186 average active weekly places × 196 USD net monthly tuition × 12 = 437472 USD. The unchanged offered calendar has 200 weekly private slots; 186 requires 93 contact hours and 15.5 handoff hours. Price and enrollment increases are authored choices, not market growth estimates or price quotes.
- Model assumption
Applies to: Student-linked materials and collection costs (Year 4)
Authored direct cost is 5% of unrounded annual tuition revenue, rounded half up once to whole USD. The share funds selected processing plus student-linked printing/materials and small consumables. Actual payment channel, invoice size and inclusions must replace it. Square rates explain fee context only; committed teacher and owner pay are in payroll and are not deducted again per lesson. Discounts/refund credits reduce tuition yield once, not this cost share again.
- Model assumption
Applies to: Paid instructors, working owner and substitute cover (Year 4)
Authored annual paid labor: four employees × 25 paid hours/week × 52 paid weeks × 30 USD/hour = 156000 USD gross, plus 60000 USD working-owner compensation. A selected 20% employer-cost allowance on the combined 216000 USD produces 259200 USD; another 240 paid substitute clock-hours at an assumed all-in 40 USD/hour adds 9600 USD, for 268800 USD. Every employee offers at most 20 contact hours and has five paid hours for handoffs/preparation/records; the owner offers at most 20 teaching hours within a 40-hour week. Fifty-two paid weeks fund the four nonteaching closure weeks as well as teaching weeks. Substitute hours include transition time; availability, instrument qualifications and management backup remain unverified. O*NET's broader occupation median and IRS statutory tax components do not verify local pay, owner legal treatment or the full allowance. Years four/five compound the complete unrounded base by 3%/year, then round half up to whole USD.
- Model assumption
Applies to: Year-round premises, systems and operating overhead (Year 4)
Authored overhead: 36000 USD base rent (1500 sq. ft. × selected 24 USD/sq. ft./year), 3600 property charges, 6000 utilities, 2400 insurance, 3600 systems, 7200 marketing, 2400 cleaning, 2400 instrument maintenance and 2400 professional/administrative costs = 66000 USD/year. No local rent, property-charge, insurance or operating quote is claimed. The first three years retain this base; years four/five compound 3% from the unrounded base and round once to whole USD. Maintenance is recurring operating upkeep; capital instrument replacement is excluded and requires a separate cash allowance.
- Model assumption
Applies to: Revenue (Year 5)
Authored year five selects 192 average active weekly places × 202 USD net monthly tuition × 12 = 465408 USD. It requires 96 contact hours plus 16 handoff hours within the same 200-slot ceiling, leaving eight unsold slots a teaching week. Mix, peak-time and substitute constraints can reduce capacity; the selected increases are not verified enrollment or pricing forecasts.
- Model assumption
Applies to: Student-linked materials and collection costs (Year 5)
Authored direct cost is 5% of unrounded annual tuition revenue, rounded half up once to whole USD. The share funds selected processing plus student-linked printing/materials and small consumables. Actual payment channel, invoice size and inclusions must replace it. Square rates explain fee context only; committed teacher and owner pay are in payroll and are not deducted again per lesson. Discounts/refund credits reduce tuition yield once, not this cost share again.
- Model assumption
Applies to: Paid instructors, working owner and substitute cover (Year 5)
Authored annual paid labor: four employees × 25 paid hours/week × 52 paid weeks × 30 USD/hour = 156000 USD gross, plus 60000 USD working-owner compensation. A selected 20% employer-cost allowance on the combined 216000 USD produces 259200 USD; another 240 paid substitute clock-hours at an assumed all-in 40 USD/hour adds 9600 USD, for 268800 USD. Every employee offers at most 20 contact hours and has five paid hours for handoffs/preparation/records; the owner offers at most 20 teaching hours within a 40-hour week. Fifty-two paid weeks fund the four nonteaching closure weeks as well as teaching weeks. Substitute hours include transition time; availability, instrument qualifications and management backup remain unverified. O*NET's broader occupation median and IRS statutory tax components do not verify local pay, owner legal treatment or the full allowance. Years four/five compound the complete unrounded base by 3%/year, then round half up to whole USD.
- Model assumption
Applies to: Year-round premises, systems and operating overhead (Year 5)
Authored overhead: 36000 USD base rent (1500 sq. ft. × selected 24 USD/sq. ft./year), 3600 property charges, 6000 utilities, 2400 insurance, 3600 systems, 7200 marketing, 2400 cleaning, 2400 instrument maintenance and 2400 professional/administrative costs = 66000 USD/year. No local rent, property-charge, insurance or operating quote is claimed. The first three years retain this base; years four/five compound 3% from the unrounded base and round once to whole USD. Maintenance is recurring operating upkeep; capital instrument replacement is excluded and requires a separate cash allowance.
- Model assumption
Applies to: Tuition per reference lesson equivalent (base scenario) · Tuition per reference lesson equivalent (lower sensitivity) · Tuition per reference lesson equivalent (upper sensitivity)
Authored monthly net tuition 190 USD base, 150 lower and 210 upper is normalized by 4.33 reference weeks/month: 43.879908, 34.642032 and 48.498845 USD per reference lesson equivalent, each retained to six decimal places. This is a bridge for the existing daily controls, not an observed price per delivered lesson. Base annual tuition 2280 USD / 48 promised lessons = 47.50 USD allocated per actual promised 30-minute lesson. Posted offers differ in geography and inclusions and do not establish the chosen net yield, endpoints or national interval.
- Model assumption
Applies to: Reference lesson equivalents per day, school-wide (base scenario) · Reference lesson equivalents per day, school-wide (lower sensitivity) · Reference lesson equivalents per day, school-wide (upper sensitivity)
Authored school-wide reference-equivalent counts 30/day base, 25 lower and 33 upper represent respectively 180, 150 and 198 occupied weekly slots when multiplied by the fixed six reference days. They are neither unique students attending every day nor observed daily attendance. Each occupied weekly slot reserves one private 30-minute lesson in each of 48 teaching weeks. Four rooms offer eight 35-minute lesson/handoff slots each weekday and ten each Saturday: 200 weekly slots maximum. Five instructors including the owner each offer 20 contact hours at most, totaling 100 contact hours; 200 slots add 16.67 transition hours within 124 room-open hours. Base 180 consumes 90 contact and 15 transition hours, leaving 20 slots. Actual instrument/teacher/peak-time compatibility may bind below the headline ceiling.
- Model assumption
Applies to: Trading days per week (base scenario) · Trading days per week (lower sensitivity) · Trading days per week (upper sensitivity)
Authored six-day reference calendar remains fixed at 6/6/6. The physical school opens Monday–Friday 3pm–8pm and Saturday 9am–3pm during 48 teaching weeks. The shared 4.33 convention counts reference weeks, not extra promised lessons: monthly revenue equals normalized yield × reference equivalents/day × 6 × 4.33 = active weekly places × monthly tuition. Fifty-two payroll weeks and four scheduled closure weeks are separate. Changing operating days alone would change the adapted offer and needs a new calendar; no six-day enrollment evidence is claimed.
- Model assumption
Applies to: Monthly fixed operating costs
Authored committed operating costs are (268800 USD annual paid owner/employee/substitute labor + 66000 USD annual overhead) / 12 = 27900 USD/month. Costs include noncontact work and paid closure weeks once. Teaching wages are deliberately committed in this sensitivity rather than variable per lesson. Debt, income tax, depreciation, capital replacement and owner distributions are excluded.
- Model assumption
Applies to: Contribution margin
Authored 0.95 contribution fraction is one minus the selected 0.05 processing/materials share. At a 190 USD online/invoice card payment Square Free's 3.3% plus 0.30 USD totals 6.57 USD; this does not establish the remaining materials allowance. Card-on-file terms differ. The embedded sensitivity retains the fraction when yield changes; the separate four-input break-even tool retains variable dollars per reference equivalent after editing price.
- Model assumption
Applies to: Opening sales as a share of mature volume · Monthly increase toward mature volume · Forecast horizon (months)
Authored ramp starts at 0.45 of mature occupied weekly places and adds 0.05 each month, capped at full volume; a 24-month horizon tests operating losses. These are planning assumptions, not acquisition probabilities, retention data or a calendar-seasonality forecast. A 0.35 start and 0.04 monthly increment is a separately authored stress case, not an expected delay. Reserve checks assume prompt same-period cash collection and setup already paid.
- Model assumption
Applies to: Payroll: Headcount
Authored payroll tool input for four employee instructors only. Authored annual paid labor: four employees × 25 paid hours/week × 52 paid weeks × 30 USD/hour = 156000 USD gross, plus 60000 USD working-owner compensation. A selected 20% employer-cost allowance on the combined 216000 USD produces 259200 USD; another 240 paid substitute clock-hours at an assumed all-in 40 USD/hour adds 9600 USD, for 268800 USD. Every employee offers at most 20 contact hours and has five paid hours for handoffs/preparation/records; the owner offers at most 20 teaching hours within a 40-hour week. Fifty-two paid weeks fund the four nonteaching closure weeks as well as teaching weeks. Substitute hours include transition time; availability, instrument qualifications and management backup remain unverified. O*NET's broader occupation median and IRS statutory tax components do not verify local pay, owner legal treatment or the full allowance. Years four/five compound the complete unrounded base by 3%/year, then round half up to whole USD. The preset excludes owner compensation and substitutes; those are added once in annual forecast payroll.
- Model assumption
Applies to: Payroll: Paid hours per worker per week
Authored payroll tool input for four employee instructors only. Authored annual paid labor: four employees × 25 paid hours/week × 52 paid weeks × 30 USD/hour = 156000 USD gross, plus 60000 USD working-owner compensation. A selected 20% employer-cost allowance on the combined 216000 USD produces 259200 USD; another 240 paid substitute clock-hours at an assumed all-in 40 USD/hour adds 9600 USD, for 268800 USD. Every employee offers at most 20 contact hours and has five paid hours for handoffs/preparation/records; the owner offers at most 20 teaching hours within a 40-hour week. Fifty-two paid weeks fund the four nonteaching closure weeks as well as teaching weeks. Substitute hours include transition time; availability, instrument qualifications and management backup remain unverified. O*NET's broader occupation median and IRS statutory tax components do not verify local pay, owner legal treatment or the full allowance. Years four/five compound the complete unrounded base by 3%/year, then round half up to whole USD. The preset excludes owner compensation and substitutes; those are added once in annual forecast payroll.
- Model assumption
Applies to: Payroll: Paid weeks per year
Authored payroll tool input for four employee instructors only. Authored annual paid labor: four employees × 25 paid hours/week × 52 paid weeks × 30 USD/hour = 156000 USD gross, plus 60000 USD working-owner compensation. A selected 20% employer-cost allowance on the combined 216000 USD produces 259200 USD; another 240 paid substitute clock-hours at an assumed all-in 40 USD/hour adds 9600 USD, for 268800 USD. Every employee offers at most 20 contact hours and has five paid hours for handoffs/preparation/records; the owner offers at most 20 teaching hours within a 40-hour week. Fifty-two paid weeks fund the four nonteaching closure weeks as well as teaching weeks. Substitute hours include transition time; availability, instrument qualifications and management backup remain unverified. O*NET's broader occupation median and IRS statutory tax components do not verify local pay, owner legal treatment or the full allowance. Years four/five compound the complete unrounded base by 3%/year, then round half up to whole USD. The preset excludes owner compensation and substitutes; those are added once in annual forecast payroll.
- Model assumption
Applies to: Payroll: Hourly wage
Authored payroll tool input for four employee instructors only. Authored annual paid labor: four employees × 25 paid hours/week × 52 paid weeks × 30 USD/hour = 156000 USD gross, plus 60000 USD working-owner compensation. A selected 20% employer-cost allowance on the combined 216000 USD produces 259200 USD; another 240 paid substitute clock-hours at an assumed all-in 40 USD/hour adds 9600 USD, for 268800 USD. Every employee offers at most 20 contact hours and has five paid hours for handoffs/preparation/records; the owner offers at most 20 teaching hours within a 40-hour week. Fifty-two paid weeks fund the four nonteaching closure weeks as well as teaching weeks. Substitute hours include transition time; availability, instrument qualifications and management backup remain unverified. O*NET's broader occupation median and IRS statutory tax components do not verify local pay, owner legal treatment or the full allowance. Years four/five compound the complete unrounded base by 3%/year, then round half up to whole USD. The preset excludes owner compensation and substitutes; those are added once in annual forecast payroll.
- Model assumption
Applies to: Payroll: Employer cost allowance
Authored payroll tool input for four employee instructors only. Authored annual paid labor: four employees × 25 paid hours/week × 52 paid weeks × 30 USD/hour = 156000 USD gross, plus 60000 USD working-owner compensation. A selected 20% employer-cost allowance on the combined 216000 USD produces 259200 USD; another 240 paid substitute clock-hours at an assumed all-in 40 USD/hour adds 9600 USD, for 268800 USD. Every employee offers at most 20 contact hours and has five paid hours for handoffs/preparation/records; the owner offers at most 20 teaching hours within a 40-hour week. Fifty-two paid weeks fund the four nonteaching closure weeks as well as teaching weeks. Substitute hours include transition time; availability, instrument qualifications and management backup remain unverified. O*NET's broader occupation median and IRS statutory tax components do not verify local pay, owner legal treatment or the full allowance. Years four/five compound the complete unrounded base by 3%/year, then round half up to whole USD. The preset excludes owner compensation and substitutes; those are added once in annual forecast payroll.