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A private school asks a lender or an investor to fund a building, a payroll and a wait. How many pupils must enrol before the school covers its costs? How much does financial aid take out of the tuition on the price list? What happens to cash if the classrooms fill more slowly than the plan projected? A generic template cannot answer those, because a school's costs arrive in August and its income arrives in ten instalments.
This article walks through a complete sample plan for a private K-8 school in Charlotte, North Carolina, section by section. It covers the state rules a new school files under, the grade-by-grade enrolment ramp, the staffing and the numbers, ending with the full five-year financials.
Here's what you'll take away:
- The executive summary: see how to put a school, its funding and its first three years on one page, so a reader knows what is being asked for
- The state rules: learn what a North Carolina private school files, inspects and tests, so the filing steps are on the calendar before the lease is signed
- Enrolment by grade against capacity: work out how many pupils each grade needs before the building pays its way
- Tuition discounting: see how the posted price falls to the net tuition a family actually pays, and why the gap widens as a school matures
- Cost per pupil: compare what each pupil costs with what each pupil brings in, year by year
- The five-year profit and loss, cash flow and balance sheet, with a downside case where enrolment is 20% short and the owner responds
The school is fictional. Take the structure and the arithmetic, and replace the figures with your own.
In this plan
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Brightfield at a Glance
Brightfield Academy is a private school for kindergarten to grade 8 that opens on 25 August 2027 in a leased single-storey building in south Charlotte, North Carolina. It opens with kindergarten to grade 6 and adds a grade each year. Founder Dr. Patricia Fields leads the school, and three family and community investors fund it alongside her.
The school needs $1,725,000: $225,000 of Patricia's savings, $1,150,000 from three investors and a $350,000 bank term loan. Of that, $412,000 pays for fit-out and equipment, $43,000 for legal work, state registration and the launch campaign, and $1,270,000 is a cash reserve sized to the downside case. Patricia holds 51% of the membership interests and the investors 49%.
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| October pupils | 68 | 102 | 129 |
| Revenue | $612,340 | $1,556,189 | $2,149,531 |
| Net income after start-up costs | ($555,692) | ($250,047) | $777 |
| Closing cash | $798,231 | $555,336 | $570,147 |
Year 1 holds seven months of salaries with no tuition and five months of the first school year, so it loses money. Year 2 loses again because the school carries teachers for 102 pupils in a building with room for 180. EBITDA (profit before depreciation, interest and tax) turns positive in Year 3 at 129 pupils, 72% of a 180-seat capacity, and net income is close to zero that year.
A downside case sits in the financials. If enrolment and every revenue line run 20% below plan and Patricia slows hiring, cuts marketing and her own pay and pays no distribution, cash stays positive at every year end, with a low of $271,955. The model shows year-end cash only, so the plan also estimates the summer low, when tuition stops. Net worth gets thin in the downside.
The School
Legal name: Brightfield Academy, LLC, a North Carolina limited liability company. Head of school: Dr. Patricia Fields. Premises: 15,000 square feet, single storey, leased for ten years, in south Charlotte. Opening: 25 August 2027, kindergarten to grade 6. Stage: pre-opening. The lease is signed in January 2027, rent starts in March, and 46 families have returned a non-binding intent form.
What Brightfield offers
A school of up to 20 pupils a grade, with homeroom teaching to grade 4, subject teachers from grade 5, and a day from 8:00 to 3:00. Extended day runs to 6:00 pm, and a six-week summer camp starts in 2028. Brightfield is a full-day school for children of compulsory school age. It is not a preschool, and it does not sell tutoring by the hour.
Where the school stands in 2031
- 155 pupils across nine grades by October 2031, against room for 180.
- Net tuition per pupil of about $17,100, after financial aid and discounts.
- A positive EBITDA from the third year and a 10.7% EBITDA margin in the fifth.
- A first owner distribution of $100,000 in 2031, subject to the lender's consent, with the bank loan repaid on schedule.
What the fees buy
| Line | How it is priced | Share of Year 1 revenue |
|---|---|---|
| Tuition | $17,400 for kindergarten to grade 4 and $19,700 for grades 5 to 8, before discounts | 84.7% |
| Registration and activity fees | $500 and $400 a pupil | 10.0% |
| Extended day | $300 a month, ten months | 5.3% |
| Summer day camp | $310 a week, from 2028 | 0.0% |
Who a North Carolina private school answers to
A conventional private school in North Carolina reports to the state's Division of Non-Public Education. The Division's page for K-12 schools sets out the rules below The rules can change, and the school confirms them with the Division before filing.
| Requirement | What the Division's page says | How Brightfield meets it |
|---|---|---|
| Notice | Report the school name, address, chief administrator and owners; 30 to 60 days before opening is suggested | Notice filed in June 2027. The name is checked against the Division's list of words a school name may not use |
| School term | At least nine calendar months on a regular schedule, with reasonable holidays | 25 August 2027 to 26 May 2028, just over nine months |
| Safety | State fire and sanitation standards, a certificate of occupancy before first use, and fire marshal and health department inspections before classes and each year after | Inspections booked for July 2027, with the original forms kept on site |
| Ground floor | Child care and classes through grade 2 on the ground floor | The whole building is one storey |
| Testing | A nationally standardized achievement test in grades 3 and 6 (and tests at grades 9 and 11, which Brightfield does not teach) | Testing in grades 3 and 6 is budgeted from the first year, with results filed for at least a year |
| Records | Attendance records at the school office and current immunization records for each pupil | The student information system holds both, and the business manager checks vaccine status at enrolment |
| Extended day and summer camp | The Division's page does not cover them | They may fall under the state's child care licensing rules depending on hours and structure, so the school confirms with the state child care licensing office before offering either |
State-funded scholarship programmes for private-school families run through a separate agency, the State Education Assistance Authority. Participation has its own steps, which this plan did not review, and it counts none of that money.
Charlotte and the Alternatives
Where teachers come from, and what they cost
The Bureau of Labor Statistics put median pay for elementary school teachers at $63,820 in May 2025 and projects little or no change in employment from 2025 to 2035, with about 99,400 openings a year, mostly from teachers leaving or retiring. With employment flat, Brightfield competes for experienced teachers with public and independent schools. Brightfield's lead teachers start at $58,000 and upper school teachers at $60,000, 6% to 9% below that median, and the plan treats the gap as a retention risk, not a saving: it is closed with small classes, a published pay scale, 3% annual rises and a clear route to deputy and head roles. Median pay for principals was $105,870 in May 2025. The head's $105,000 salary matches it.
What a family can choose instead
| Alternative | What it offers | Why a family picks it | How Brightfield differs by design |
|---|---|---|---|
| District public school | No tuition, large programmes | Cost, proximity, transport | Small classes with a named teacher through grade 4 |
| Charter school | Tuition-free public school with its own admission process | Cost, and a specific programme | A fixed daily schedule to 6:00 pm and a K-8 span in one building |
| Established independent or parochial school | Long-standing programmes, alumni networks, often a high school | Reputation, a route to grade 12 | A newer school with a single head, small classes and no waiting list |
| Home education and learning pods | Flexible, parent-led | Control of the day | A full-time school, with extended day for working parents |
| Other new micro-schools | Small groups, often one age band | Intimacy | A full K-8 span with subject teachers from grade 5 |
The table describes categories and how Brightfield positions itself, not a ranking. Tuition at other schools is published on their own sites and changes each year, so the plan quotes none of it. Before the posted tuition is final, Patricia collects every local school's published rates and records the date.
SWOT
| Strengths | Weaknesses |
|---|---|
| A head with sixteen years in Charlotte classrooms and school leadership | One senior leader until the deputy arrives in year four |
| Small classes and a daily schedule that fits working parents | No track record, no alumni and no accreditation in year one |
| 46 families on record before the lease is signed | Seven months of payroll before the first tuition instalment |
| Opportunities | Threats |
|---|---|
| Families leaving oversized classes for a small K-8 | A slower enrolment ramp than the 68-pupil opening class |
| Preschool and employer partnerships as feeder sources | Experienced teachers lured to higher-paying schools |
| Camp and extended day use the building outside teaching hours | Financial aid requests running above the 15% discount budget |
Who the Families Are
Households with children aged 5 to 13
Typically two working parents with household income that can carry $15,000 to $17,000 a child after discounts, or a single parent supported by aid. Many have a child at kindergarten age and a younger sibling who will follow.
What they do now
Some send children to the zoned public school and add tutoring or enrichment. Some move a child at grade 4 or 5 because class sizes or middle school size concern them. Others already pay for an independent school and are looking at cost, commute or fit.
What makes a family move
A child who is coasting or struggling in a large class, a move into the area, a first-time school choice at kindergarten, or a transport or schedule change that makes the current school unworkable.
What they ask of the school
A teacher who knows their child, a published calendar, a clear invoice that does not change mid-year and honest answers about aid.
From Inquiry to Enrolment
The admissions path
An inquiry form or call, a tour led by Patricia or the director of admissions, an application with a records request and a classroom visit for the child, a decision within ten working days and an enrolment contract with a deposit that is credited against tuition. In the first year Patricia leads every tour.
The first-year funnel
About 335 inquiries produce 134 tours (40%), 80 applications (60% of tours) and 68 enrolments (85% of applications). Referrals from families and from the intent-form list carry the largest share.
Enrolment by grade against capacity
Capacity is 20 pupils a grade, 180 in all once grade 8 opens. A class never holds more than 22, which matters only where two grades share a class: grades 1 and 2 share one of 21 pupils in 2027-28, and grades 3 and 4 one of 20. These are October headcounts.
| Grade | 2027-28 | 2028-29 | 2029-30 | 2030-31 | 2031-32 |
|---|---|---|---|---|---|
| Kindergarten | 11 | 15 | 17 | 18 | 18 |
| 1 | 11 | 14 | 16 | 18 | 18 |
| 2 | 10 | 14 | 16 | 17 | 18 |
| 3 | 10 | 13 | 15 | 17 | 18 |
| 4 | 10 | 13 | 15 | 16 | 17 |
| 5 | 8 | 13 | 15 | 16 | 17 |
| 6 | 8 | 12 | 15 | 16 | 17 |
| 7 | – | 8 | 12 | 15 | 17 |
| 8 | – | – | 8 | 12 | 15 |
| Total pupils | 68 | 102 | 129 | 145 | 155 |
| Capacity of open grades | 140 | 160 | 180 | 180 | 180 |
| Share of capacity | 49% | 64% | 72% | 81% | 86% |
Growth slows after 2029 because the early grades are already near 18 a class. Grade 8 is the last to fill, and a full building at the plan's level of 90% would be 162 pupils.
Keeping pupils, finding new ones
The plan keeps 90% of each year's pupils, other than those who finish grade 8. That leaves new pupils to find each year:
| 2028-29 | 2029-30 | 2030-31 | 2031-32 | |
|---|---|---|---|---|
| Pupils who return | 61 | 92 | 109 | 120 |
| New pupils | 41 | 37 | 36 | 35 |
From posted price to net tuition
The posted tuition is the figure on the website. Financial aid and sibling and staff discounts come off it, and the discount rate rises as the school matures and more families apply for aid.
| School year | Posted tuition | Financial aid | Sibling and staff discounts | Net tuition | Net tuition per pupil |
|---|---|---|---|---|---|
| 2027-28 | $1,220,000 | $122,000 (10%) | $61,000 (5%) | $1,037,000 | $15,250 |
| 2028-29 | $1,915,491 | $229,859 (12%) | $95,775 (5%) | $1,589,858 | $15,587 |
| 2029-30 | $2,527,760 | $328,609 (13%) | $126,388 (5%) | $2,072,763 | $16,068 |
| 2030-31 | $2,947,790 | $383,213 (13%) | $176,867 (6%) | $2,387,710 | $16,467 |
| 2031-32 | $3,269,125 | $424,986 (13%) | $196,148 (6%) | $2,647,991 | $17,084 |
Each point of extra discount in 2031-32 would cost about $32,700 of tuition. The sibling and staff discounts are set by policy, and financial aid is decided case by case from family financial statements.
Spending to Fill the Classrooms
What the first year spends and what it buys
Year 1 marketing is $62,000: $22,000 of launch costs paid from start-up capital and $40,000 of operating spend. That is 10% of Year 1 revenue and $912 for each of the 68 first pupils. Later years spend $42,000 to $45,000, about $1,000 to $1,300 for each new pupil, and 1.5% to 2.7% of revenue.
| Channel | Year 1 spend | What it is meant to do |
|---|---|---|
| Website and brand (launch) | $12,000 | A site with tuition, calendar, state-requirements page and a tour booking form |
| Signage and banners (launch) | $6,000 | Visibility on the building's road frontage from March |
| Opening open houses (launch) | $4,000 | Three Saturday sessions in spring 2027 |
| Google search and social | $14,000 | Search terms such as "private school Charlotte" and "K-8 school south Charlotte"; about 15 pupils |
| Preschool and childcare partners | $3,000 | Visits and a shared kindergarten-readiness evening; about 10 pupils |
| Open houses and school fair | $6,000 | Fall and winter sessions; about 11 pupils |
| Community and employer events | $4,000 | Presentations to employers and church groups; about 7 pupils |
| Mailers and local print | $5,000 | Postcards to households near the school; about 5 pupils |
| Family referral thank-yous | $2,000 | A small gift for each referring family; about 20 pupils |
| Admissions software and email | $6,000 | Follow-up on every inquiry within one working day |
Marketing milestones
- March 2027: signage ordered, launch campaign starts and enrolment contracts open.
- June 2027: 55 enrolment contracts signed.
- August 2027: doors open to 68 pupils.
- March 2028: re-enrolment for 2028-29 closes with 61 returning pupils.
- October 2028: 102 pupils, with grade 7 added.
Running the School
The building
15,000 square feet in a single-storey building: ten classrooms including a science and art room, a multipurpose room that doubles as gym and dining room, offices and a fenced playground. That is 83 square feet per pupil at the 180-pupil capacity, which is tight. Base rent is $15 a square foot a year, $225,000 in a full year and $187,500 in 2027 because rent starts in March. The lease is triple-net, so the school also pays property tax, building insurance and common-area charges, budgeted at $60,000 a year. It runs ten years with 3% annual increases, and Patricia guarantees it personally. The landlord contributes a $60,000 improvement allowance toward the fit-out. Zoning, use and occupancy approvals from the local authorities are confirmed before the lease is signed.
Fit-out and equipment
| Item | Cost |
|---|---|
| Classroom partitions, flooring, lighting and restrooms (net of the $60,000 landlord allowance) | $90,000 |
| Fire alarm, egress and accessibility upgrades | $70,000 |
| Entry control, cameras and playground | $62,000 |
| Classroom furniture, science room, art room and library | $112,000 |
| Student laptops, network and office equipment | $78,000 |
| Total | $412,000 |
Fit-out is built from March to June 2027 and equipment is bought in May and June, ahead of the July inspections.
The school day and year
Teaching runs from 8:00 to 3:00 from 25 August to 26 May. Kindergarten to grade 4 learn in homerooms. Grades 5 to 8 move between a math and science teacher and an English and social studies teacher, and a second math teacher joins as the middle grades grow. Art and music are taught throughout, and physical education from 2028. A part-time health aide covers first aid and medication. The plan funds no counsellor or language teacher, and lunch and transport are left to families. Extended day follows until 6:00 pm, and summer camp runs for six weeks.
Teachers against pupils
| 2027 | 2028 | 2029 | 2030 | 2031 | |
|---|---|---|---|---|---|
| October pupils | 68 | 102 | 129 | 145 | 155 |
| Classroom teachers | 5 | 7 | 8 | 9 | 10 |
| Specialist teachers | 1 | 2 | 2 | 2 | 2 |
| Pupils per classroom teacher | 13.6 | 14.6 | 16.1 | 16.1 | 15.5 |
| Pupils per teacher, specialists included | 11.3 | 11.3 | 12.9 | 13.2 | 12.9 |
What each pupil costs
Operating cost here is revenue less EBITDA, divided by October headcount. 2027 is left out because it holds only five months of teaching. Figures are rounded to the nearest dollar, so a column can differ from its total by $1.
| 2028 | 2029 | 2030 | 2031 | |
|---|---|---|---|---|
| Revenue per pupil | $15,257 | $16,663 | $17,987 | $18,990 |
| Payroll per pupil (with pay raises) | $9,974 | $9,794 | $10,391 | $10,934 |
| Building per pupil (rent, triple-net charges, utilities, janitorial) | $3,382 | $2,756 | $2,527 | $2,435 |
| Everything else per pupil | $3,438 | $3,405 | $3,503 | $3,587 |
| Operating cost per pupil | $16,794 | $15,955 | $16,421 | $16,956 |
Cost per pupil falls in 2029 as the building fills, then rises as pay raises and new hires outpace added pupils. Building cost per pupil drops by more than a quarter over four years, which is the benefit of filling seats. Payroll is the line to watch, at 58% to 59% of revenue from 2029.
Systems and records
A student information system handles enrolment, attendance, immunization records and grade reports, with ACH billing for the monthly tuition instalments. A learning platform runs homework and parent messages. Software costs $14,000 in 2027 and $24,000 by 2031.
Insurance and safeguarding
General liability, property contents, abuse and molestation, directors and officers, student accident and non-owned auto cover (workers' compensation sits in the payroll on-costs), budgeted at $24,000 in 2027 and $42,000 by 2031. All staff and regular volunteers are background-checked before they work with children.
What a lender will ask
- Collateral. Leasehold improvements rarely resell, so the $412,000 of fit-out and equipment secures little. The loan rests on Patricia's guarantee, the $1,375,000 of equity beneath it and the reserve.
- Lease and approvals. Triple-net rent, the $60,000 landlord allowance, the ten-year term and zoning and use approval are confirmed before signing.
- Prepaid tuition. Enrolment deposits are credited against tuition. The model does not count them as early cash, which keeps the summer low conservative.
- Lunch, nurse and transport. Lunch and transport are left to families, and a part-time health aide is on payroll.
Head, Faculty and Governance
Dr. Patricia Fields, head of school and founder
Patricia spent sixteen years in Charlotte schools, eight as a classroom teacher and eight in leadership, the last six as head of a lower school at an independent school. She holds a doctorate in educational leadership. Her $225,000 is her savings, and she draws a $105,000 salary from the opening.
Where the leadership is thin
Patricia has not run a school's budget as owner, hired a full faculty at once or built an admissions pipeline from nothing. The plan covers this with an admissions director from March, the business manager's checks on every invoice, an outside accountant's quarterly review and an advisory group of two retired heads who meet quarterly.
If Patricia is out
The deputy head does not arrive until July 2030. Until then the director of admissions and the most senior lead teacher cover day-to-day running under a written delegation, and the school carries key-person life and disability cover on Patricia.
Ownership and the lender
Patricia holds 51% of the membership interests and the three investors 49%, although the investors supply $1,150,000 of the $1,375,000 of equity. Investors are repaid their capital before any distribution to Patricia, and counsel reviews the operating agreement. The bank takes a personal guarantee from Patricia and a lien on the equipment, and asks for quarterly accounts and a minimum net worth. The 2031 distribution of $100,000 needs the lender's consent because retained earnings are still negative.
Five Years of Tuition, Payroll and Cash
One five-year model sits behind every table in this section: monthly for 2027, annual from 2028. A school bills by the academic year and the model runs by calendar year, so each calendar-year figure mixes the end of one school year with the start of the next. The inputs come first so each number has a visible reason.
Paying for the building and the first two years
| Use of funds | Amount |
|---|---|
| Fit-out: classroom partitions, flooring, lighting and restrooms (net of a $60,000 landlord allowance) | $90,000 |
| Fire alarm, egress and accessibility upgrades | $70,000 |
| Entry control, cameras and playground | $62,000 |
| Classroom furniture, science room, art room and library | $112,000 |
| Student laptops, network and office equipment | $78,000 |
| State registration, fire and health inspections, business licences | $3,000 |
| Legal: lease, entity, enrolment contract and handbook | $18,000 |
| Launch: website, signage, open houses and local campaign | $22,000 |
| Cash reserve for the first year and the early ramp | $1,270,000 |
| Total uses | $1,725,000 |
| Source of funds | Amount |
|---|---|
| Patricia Fields' savings | $225,000 |
| Three family and community investors (49% of the membership interests) | $1,150,000 |
| Bank term loan | $350,000 |
| Total sources | $1,725,000 |
Patricia Fields puts in $225,000 of savings (13.0% of the $1,725,000 total). Three family and community investors put in $1,150,000 (66.7%). A bank lends $350,000 (20.3%) over ten years at 10.5%, interest-only for the first twelve months, with Patricia's personal guarantee and a lien on the equipment. The rate is a figure for this example and no lender has quoted it. Fit-out and equipment take $412,000 and legal, registration and launch costs take $43,000. The remaining $1,270,000 is a reserve. Equity is $1,375,000 in all, and investors supply 84% of it but hold 49% of the membership interests, with Patricia holding 51% for founding and running the school; investors are repaid their capital before any distribution to Patricia. The operating agreement belongs with counsel. The reserve is sized to the downside case, not the base case: in the base case year-end cash never falls below $555,336, but with enrolment 20% short and hiring slowed, the lowest year-end balance is $271,955. Because tuition stops in June and July and the model shows only year-end cash after 2027, that margin is what covers the summer low. A lender may collateralise the fit-out at little value, since leasehold improvements rarely resell, so the guarantee and the equity cushion carry the loan.
Figures the forecast is built on
- The school opens on 25 August 2027 with kindergarten to grade 6 and adds one grade a year, grade 7 in 2028 and grade 8 in 2029. October headcount is 68 pupils in the first year and 155 in the fifth, against a capacity of 20 a grade.
- Posted tuition for 2027-28 is $17,400 for kindergarten to grade 4 and $19,700 for grades 5 to 8. Both rise 3.5% each August. Discounts, which are financial aid plus sibling and staff discounts, take 15% of posted tuition in the first school year and 19% by the fifth, so net tuition per pupil moves from $15,250 to $17,084.
- Tuition is billed in ten monthly instalments from August to May and collected by bank debit, with receivables averaging 10 days. Calendar-year revenue therefore holds five instalments of one school year and five of the next, and 2027 holds only the first five. Enrolment deposits are credited against tuition and are not modelled as early cash.
- Each pupil also pays a $500 registration fee, collected from March to July before the school year, and a $400 activity fee billed in August and September. Both rise 3% a year.
- Extended day (3 to 6 pm) is taken by 32% of pupils at $300 a month for ten months, about $4.80 an hour at 21 days a month. Summer day camp starts in 2028 with an average of 34 children a week over six weeks at $310 a week, growing to 52 children by 2031. Extended day and camp may fall under the state's child care licensing rules, so the school confirms with the state child care licensing office before opening either, and staffing costs would follow its answer.
- Ninety percent of pupils return each year, and eighth graders leave. That leaves 41 new pupils to find for 2028-29, then 37, 36 and 35. Marketing is sized to those numbers.
- No class exceeds 22 pupils. Each grade is capped at 20, so the 22 limit matters only where two grades share a class. Kindergarten to grade 4 are taught in homerooms, with a second section for grades 1 and 2 and for grades 3 and 4 from July 2028. Grades 5 to 8 are taught by subject teachers, each covering two subject areas, with the art, music and physical education specialists covering those subjects. Classroom teachers number 5, 7, 8, 9 and 10 at the end of each year, which is 13.6, 14.6, 16.1, 16.1 and 15.5 pupils per classroom teacher.
- Lead teachers earn $58,000 and upper school teachers $60,000 at launch, below the $63,820 median the Bureau of Labor Statistics reported for elementary school teachers in May 2025. The head of school is paid $105,000. Payroll adds 27% for payroll taxes, health cover, workers' compensation and a retirement match (15% for the part-time staff), and workers' compensation is not repeated in the insurance line. Annual pay raises of 3% are charged as a separate line from 2028. A part-time health aide covers first aid and medication. No counsellor or language teacher is funded; the learning support coordinator handles counselling referrals from 2029.
- Lunch is not provided. Families pack lunch or order from an outside vendor, and the school books neither the income nor the cost. Transport is left to families.
- The building is 15,000 square feet on a ten-year lease, with ten classrooms and shared spaces: 83 square feet per pupil at the 180-pupil capacity, which is tight, and the multipurpose room doubles as gym and dining room. Base rent is $15 a square foot ($225,000 a year) on a triple-net basis, plus $60,000 a year for property tax, building insurance and common-area charges. Both rise 3% a year. A landlord allowance of $60,000 reduces the fit-out. The lease is signed in January 2027 and rent starts in March, so the first year carries ten months.
- Fit-out runs from March to June 2027 and equipment is bought in May and June. Launch marketing, including the road signage, starts in March. Legal costs fall in January and state registration and inspections in May.
- Replacement laptops are budgeted at $22,000 in 2029, $30,000 in 2030 and $36,000 in 2031, which renews about a quarter of the 180-laptop fleet each year from 2029 on a four-year life.
- Income tax is charged at the federal corporate rate of 21% and a North Carolina rate of 2%, with losses carried forward. The state rate may change, and the entity could be taxed differently depending on its election, so the tax lines are a placeholder to confirm with an accountant. No tax is payable in any year because the early losses absorb the later profits.
- A distribution of $100,000 is paid in 2031 and none before. It needs the lender's consent while the loan carries a net-worth covenant and retained earnings are negative. The bank loan stays in place and is repaid on schedule rather than early.
- The plan books no income from state-funded private-school scholarship programmes. Any such programme has its own participation process, and counting it would make the enrolment line depend on rules the school does not control.
Revenue by line
| Revenue stream | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Net tuition (after financial aid and discounts) | $518,500 | $1,313,429 | $1,831,310 | $2,230,237 | $2,517,851 |
| Registration and activity fees | $61,200 | $94,554 | $123,170 | $142,597 | $157,007 |
| Extended day (3 to 6 pm) | $32,640 | $83,069 | $116,120 | $141,743 | $159,789 |
| Summer day camp | $0 | $65,137 | $78,931 | $93,491 | $108,858 |
| Total revenue | $612,340 | $1,556,189 | $2,149,531 | $2,608,068 | $2,943,505 |
| Growth on prior year | – | 154% | 38% | 21% | 13% |
Tuition is 85% of revenue in 2027 and 86% in 2031. Fees add 10% of revenue in 2027 and 5% by 2031. Extended day and camp use the building outside teaching hours, which is why they are worth running, but each keeps only 45% to 50% of what it bills after aides, counsellors and trips. The 154% rise in 2028 is arithmetic: 2027 carries five months of tuition, 2028 carries a full year with 102 pupils in place of 68, and summer camp opens.
Month by month in 2027
| Month | Net tuition (after financial aid and discounts) | Registration and activity fees | Extended day (3 to 6 pm) | Summer day camp | Total revenue | EBITDA |
|---|---|---|---|---|---|---|
| Jan 2027 | $0 | $0 | $0 | $0 | $0 | ($81,402) |
| Feb 2027 | $0 | $0 | $0 | $0 | $0 | ($81,402) |
| Mar 2027 | $0 | $3,400 | $0 | $0 | $3,400 | ($78,300) |
| Apr 2027 | $0 | $6,800 | $0 | $0 | $6,800 | ($75,199) |
| May 2027 | $0 | $8,500 | $0 | $0 | $8,500 | ($73,648) |
| Jun 2027 | $0 | $8,500 | $0 | $0 | $8,500 | ($73,648) |
| Jul 2027 | $0 | $6,800 | $0 | $0 | $6,800 | ($75,199) |
| Aug 2027 | $103,700 | $16,320 | $6,528 | $0 | $126,548 | $34,036 |
| Sep 2027 | $103,700 | $10,880 | $6,528 | $0 | $121,108 | $29,073 |
| Oct 2027 | $103,700 | $0 | $6,528 | $0 | $110,228 | $19,148 |
| Nov 2027 | $103,700 | $0 | $6,528 | $0 | $110,228 | $19,148 |
| Dec 2027 | $103,700 | $0 | $6,528 | $0 | $110,228 | $19,148 |
The model spreads 2027 payroll and operating costs evenly across the twelve months, so January and February show about $81,000 of cost each although only the head of school is on payroll and the lease has not started. The annual total is right; the monthly shape is smoothed. The August to December profit is flattered by the same spreading, and cash through July is lower in the model than it would be in practice. With that caveat, operating profit before depreciation is negative from January to July and positive from August to December, and the lowest month-end balance in the model is $709,766, at the end of July.
Faculty and staff plan
| Role | Annual wage | Starts | Year 1 end | Year 2 end | Year 3 end | Year 4 end | Year 5 end |
|---|---|---|---|---|---|---|---|
| Head of school (founder) | $105,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Director of admissions and enrolment | $64,000 | Month 3 | 1 | 1 | 1 | 1 | 1 |
| Business manager | $58,000 | Month 5 | 1 | 1 | 1 | 1 | 1 |
| Lead teacher, kindergarten | $58,000 | Month 7 | 1 | 1 | 1 | 1 | 1 |
| Lead teacher, grades 1 and 2 | $58,000 | Month 7 | 1 | 1 | 1 | 1 | 1 |
| Lead teacher, grades 3 and 4 | $58,000 | Month 7 | 1 | 1 | 1 | 1 | 1 |
| Upper school teacher, math and science | $60,000 | Month 7 | 1 | 1 | 1 | 1 | 1 |
| Upper school teacher, English and social studies | $60,000 | Month 7 | 1 | 1 | 1 | 1 | 1 |
| Specialist teacher, art and music | $50,000 | Month 7 | 1 | 1 | 1 | 1 | 1 |
| Classroom assistant (kindergarten and grade 1) | $36,000 | Month 7 | 1 | 1 | 1 | 1 | 1 |
| Extended day lead | $38,000 | Month 7 | 1 | 1 | 1 | 1 | 1 |
| Front office coordinator (part time, 25 hours a week) | $26,000 | Month 7 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 |
| School health aide (part time, 20 hours a week) | $30,000 | Month 7 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 |
| Lead teacher, grades 1 and 2 (second section) | $58,000 | Month 19 | – | 1 | 1 | 1 | 1 |
| Lead teacher, grades 3 and 4 (second section) | $58,000 | Month 19 | – | 1 | 1 | 1 | 1 |
| Specialist teacher, physical education and wellness | $48,000 | Month 19 | – | 1 | 1 | 1 | 1 |
| Learning support coordinator | $60,000 | Month 31 | – | – | 1 | 1 | 1 |
| Upper school teacher, math (second) | $60,000 | Month 31 | – | – | 1 | 1 | 1 |
| Classroom assistant (grades 2 and 3) | $36,000 | Month 31 | – | – | 1 | 1 | 1 |
| Upper school teacher, science and technology | $60,000 | Month 43 | – | – | – | 1 | 1 |
| Deputy head and academic dean | $80,000 | Month 43 | – | – | – | 1 | 1 |
| Upper school teacher, English and social studies (second) | $60,000 | Month 55 | – | – | – | – | 1 |
| Total payroll incl. on-costs | $547,820 | $987,690 | $1,190,890 | $1,378,850 | $1,505,850 |
The head of school is the only salaried employee in January. The director of admissions joins in March, the business manager in May and the first teachers, the health aide and the front office coordinator in July so they can plan before the doors open. Second sections for grades 1 and 2 and for grades 3 and 4 arrive in July 2028, with the physical education teacher, as the combined groups pass 22 pupils. The learning support coordinator, second math teacher and a second classroom assistant follow in July 2029, a science and technology teacher and the deputy head in July 2030 and a fifth upper school teacher in July 2031. The two part-time positions count as half a position each. Patricia's $105,000 salary is already in the costs, so profit means what is left after she is paid.
Profit and loss
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Revenue | $612,340 | $1,556,189 | $2,149,531 | $2,608,068 | $2,943,505 |
| Direct costs (payment processing, extended-day aides, camp staff and trips, fee-funded activities) | ($53,762) | ($136,631) | ($188,725) | ($228,984) | ($258,435) |
| Gross profit | $558,578 | $1,419,558 | $1,960,806 | $2,379,084 | $2,685,070 |
| Payroll incl. on-costs | ($547,820) | ($987,690) | ($1,190,890) | ($1,378,850) | ($1,505,850) |
| Rent | ($187,500) | ($225,000) | ($231,750) | ($238,703) | ($245,864) |
| Utilities | ($24,000) | ($32,000) | ($33,000) | ($34,000) | ($35,000) |
| Marketing | ($40,000) | ($42,000) | ($42,000) | ($44,000) | ($45,000) |
| Insurance | ($24,000) | ($32,000) | ($36,000) | ($39,000) | ($42,000) |
| Professional fees | ($14,000) | ($12,000) | ($12,500) | ($13,000) | ($13,500) |
| Software subscriptions | ($14,000) | ($17,000) | ($20,000) | ($22,000) | ($24,000) |
| Property tax, building insurance and common-area charges (triple-net) | ($50,000) | ($60,000) | ($61,800) | ($63,654) | ($65,564) |
| Curriculum, library and classroom supplies | ($28,000) | ($38,000) | ($48,000) | ($54,000) | ($58,000) |
| Janitorial and building maintenance contract | ($17,000) | ($28,000) | ($29,000) | ($30,000) | ($31,000) |
| Standardized testing, background checks and inspections | ($6,000) | ($7,000) | ($8,000) | ($9,000) | ($10,000) |
| Teacher development and recruitment | ($8,000) | ($9,000) | ($10,000) | ($11,000) | ($12,000) |
| Technology repair and replacement | ($4,000) | ($8,000) | ($22,000) | ($30,000) | ($36,000) |
| Furniture for new classrooms and repairs | ($5,000) | ($27,000) | ($24,000) | ($25,000) | ($22,000) |
| School events, communications and office supplies | ($6,000) | ($8,000) | ($9,000) | ($10,000) | ($11,000) |
| Tuition bad debt allowance | ($1,500) | ($14,000) | ($19,000) | ($22,000) | ($24,000) |
| Annual pay raises (3% a year) | $0 | ($29,631) | ($72,525) | ($127,857) | ($188,997) |
| EBITDA | ($418,242) | ($156,763) | $91,341 | $227,020 | $315,295 |
| Depreciation | ($57,700) | ($57,700) | ($57,700) | ($57,700) | ($38,200) |
| Interest | ($36,750) | ($35,584) | ($32,863) | ($29,843) | ($26,489) |
| Income tax | $0 | $0 | $0 | $0 | $0 |
| Net income before start-up costs | ($512,692) | ($250,047) | $777 | $139,477 | $250,606 |
| Start-up costs expensed at opening (legal, state registration and inspections, launch marketing) | ($43,000) | $0 | $0 | $0 | $0 |
| Net income after start-up costs | ($555,692) | ($250,047) | $777 | $139,477 | $250,606 |
EBITDA, which is profit before depreciation, interest and tax, is negative in 2027 and 2028 and positive from 2029, at 4.3% of revenue in 2029 and 10.7% in 2031. After depreciation, operating profit in 2029 is $33,641, or 1.6% of revenue. The first year loses $555,692 after start-up costs and the second a further $250,047. Retained earnings are still negative at the end of 2031. Payroll, including pay raises, runs at 58% to 59% of revenue from 2029. No income tax is due in any year.
Cash movements
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Cash from operations | ($514,769) | ($218,206) | $42,221 | $184,614 | $279,616 |
| Fit-out and equipment | ($412,000) | $0 | $0 | $0 | $0 |
| Funding received | $1,725,000 | $0 | $0 | $0 | $0 |
| Loan principal repaid | $0 | ($24,689) | ($27,410) | ($30,431) | ($33,785) |
| Owner distributions | $0 | $0 | $0 | $0 | ($100,000) |
| Net change in cash | $798,231 | ($242,895) | $14,811 | $154,183 | $145,831 |
| Closing cash | $798,231 | $555,336 | $570,147 | $724,330 | $870,161 |
Closing cash falls from $798,231 at the end of 2027 to $555,336 at the end of 2028, its lowest year-end figure, then rises every year. The model shows year-end cash only after 2027. Tuition stops in June and July while costs of roughly $140,000 to $200,000 a month continue, so the real low falls each July. Working through receipts and costs, the July balance is about $100,000 to $225,000 below the previous December in the base case, and the base case stays well positive. The only cash outflows besides operations are loan principal, which starts in 2028, and the 2031 distribution.
Balance sheet
| At year end | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Cash | $798,231 | $555,336 | $570,147 | $724,330 | $870,161 |
| Accounts receivable | $16,776 | $42,635 | $58,891 | $71,454 | $80,644 |
| Fit-out and equipment (net) | $354,300 | $296,600 | $238,900 | $181,200 | $143,000 |
| Total assets | $1,169,308 | $894,571 | $867,938 | $976,984 | $1,093,805 |
| Bank term loan | $350,000 | $325,311 | $297,900 | $267,469 | $233,685 |
| Paid-in capital | $1,375,000 | $1,375,000 | $1,375,000 | $1,375,000 | $1,375,000 |
| Retained earnings | ($555,692) | ($805,740) | ($804,963) | ($665,486) | ($514,880) |
| Total liabilities and equity | $1,169,308 | $894,571 | $867,938 | $976,984 | $1,093,805 |
Margins, break-even and debt cover
| Measure | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| EBITDA margin | -68.3% | -10.1% | 4.3% | 8.7% | 10.7% |
| Net margin (before start-up costs) | -83.7% | -16.1% | 0.0% | 5.3% | 8.5% |
| Payroll incl. pay raises as share of revenue | 89% | 65% | 59% | 58% | 58% |
| Revenue per full-time equivalent at year end | $51,028 | $103,746 | $119,418 | $130,403 | $140,167 |
| Average monthly revenue | $51,028 | $129,682 | $179,128 | $217,339 | $245,292 |
| Monthly revenue needed to cover operating costs | $89,236 | $144,003 | $170,783 | $196,600 | $216,489 |
| Debt service cover (EBITDA / interest + principal) | -11.4x | -2.6x | 1.5x | 3.8x | 5.2x |
The "monthly revenue needed to cover operating costs" row is an EBITDA break-even: it covers payroll and running costs but not depreciation, interest or loan repayments. Average monthly revenue is $51,028 in 2027 against $89,236 needed, and $129,682 against $144,003 in 2028. It clears the line in 2029 at $179,128 against $170,783. Treating all costs as fixed, the school needs about 123 pupils at 2029 prices and costs; October headcount that year is 129. Debt service cover is negative while the school loses money and reaches 1.5x in 2029 and 5.2x in 2031.
If enrolment falls 20% short
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Revenue | $489,872 | $1,244,951 | $1,719,625 | $2,086,454 | $2,354,804 |
| Net income before start-up costs | ($579,438) | ($369,424) | ($115,115) | ($25,175) | $65,488 |
| Net income after start-up costs | ($622,438) | ($369,424) | ($115,115) | ($25,175) | $65,488 |
| Closing cash | $734,841 | $377,741 | $279,911 | $271,955 | $334,506 |
This case takes 20% off every revenue line in every year, or about 54 pupils instead of 68 in the first autumn. The response: the deputy head and the second math and English and social studies teachers are never hired, every other hire from July 2028 onward moves back one school year, Patricia takes a 20% pay cut, marketing, supplies, furniture, bad debt and janitorial costs fall by 20% and no distribution is paid. Grades 1 and 2 and grades 3 and 4 run as single sections of up to about 22 pupils for one more year. On those terms the school ends every year with cash in the bank, at no less than $271,955, and is profitable from 2031. Because tuition stops in June and July, the real low sits below those year-end figures; a rough working puts the lowest July balance near $100,000 in 2030, still positive. Equity closes the first year at $752,562 and falls to about $268,000 at the end of 2029, so a bank covenant on net worth would be close to tripping and the school would raise it with the lender early. Without the response, the same shortfall leaves the school with negative cash at the end of 2029 (about -$205,900).
Sources
- North Carolina Department of Administration, Private School Grade K-12 School Requirements, Division of Non-Public Education.
- Bureau of Labor Statistics, Kindergarten and elementary school teachers, Occupational Outlook Handbook, May 2025 pay data.
- Bureau of Labor Statistics, Elementary, middle and high school principals, May 2025 pay data.
- North Carolina Department of Revenue, Corporate income and franchise tax rates. The page lists a 2% rate for 2026; the plan uses 2% for later years, and the rate may change.
- North Carolina State Education Assistance Authority, Opportunity Scholarship program, for the existence of a separate state scholarship programme. Participation terms were not reviewed for this plan.
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