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Be aware, however, that “target enrollment” is not the number of students you will need to sign up. Target enrollment is the number of paying students you need every month to pay your bills and yourself. To keep your school at its target enrollment, you’ll need to sign up not only enough students to pay the bills; you’ll also need to sign up new students to compensate for those who drop out. Remember, too, that we’re talking about paying students, not training students. If they don’t pay, they aren’t a part of your target enrollment.

A word about the future: While you’re figuring out expenses, also look at “optional” expenses. For example, you may eventually want to be able to hire an employee. You may want to expand your school. Consider, too, your own continuing education: you may want to set aside money for seminars and teacher-training classes. Sure, at the beginning, you will probably be glad if the business makes enough to support itself. Eventually, though, you may want to run not just a self-supporting business but a thriving one. To figure out how many students you would need to support additional expenses, you can use the same formula. Monthly expenses for your optional projects divided by monthly per-student income equals number of students needed to support the optional projects.