It takes more than correct math to make a business plan. This particular plan one major missing component and at least one major non sequitur.
The major missing component is that no monies have been allocated to the capital; i.e., the facilities. This is an interesting omission since it is the same flaw introduced by Karl Marx; i.e., the party which provides the tools or the organization does not deserve monetary remuneration.
The non sequitur is multiplying “babysitting” costs by the number of students. That doesn’t happen to be the cash flow which pays teachers. And again, they overlook the overhead of the administration as well as cost of books and materials.
Thanks. I’m trying to figure out a way to respond to this because the assumption it makes is absurd.
Indeed. The initial cost of the school is roughly $10 million dollars. The cost per year to run the school is about $10,000 per student. Multiply that times 30 students and her figure of $280,000 would save taxpayers $20,000 per year. Then again, I’m a product of public education so I may be way off.