The financial intricacies of providing educational classes are profound. Among the numerous financial modeling projects I've undertaken, constructing a scalable model for businesses offering classes or courses stands out as one of the most challenging. This complexity is accentuated when aiming to introduce classes progressively and gauge capacity attainment throughout a course's lifespan. However, I have successfully navigated these challenges with my model.
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I came across the idea of an elder tech academy business where in-person classes are offered to the elderly that help with phone usage, TV usage, computer usage, and basically any kind of technology that presents issues to the elderly. This financial model template can be used for something like that or literally any other business that offers educational courses online or in-person. The assumptions are robust.
Template Features:
- Output 3 statement model projections for up to 10 years with monthly and annual views.
- Run a DCF Analysis, IRR, MOIC, and more.
- Adjustable timing assumptions for launch year, exit, and terminal value multiple.
- Capex schedule, cap table, and option for debt utilization.
- Includes sanity checks for all statements.
- Includes dynamic visualizations that make the financial projections more digestible.
- Includes integrated income statement, balance sheet, and statement of cash flows.
- Annual executive summary with high level financial metrics.
- Includes a scheduling tab that has conditional formatting so you can plan out the class time slots and available capacity at multiple locations / classrooms.
Assumptions:
- Configure up to 3 course types.
- Each course type has its own pricing, class scale out, variable costs, capex, capacity, and course length assumptions.
- Configure up to 10 class expansion tranches for each course type (define class count added)
- Configure the percentage of full class capacity that is reached over time (this dynamically applies to each class expansion tranche)
- For fixed expenses, there are three main sections to configure monthly costs by cost type and per a start month. This is good to plan for future location expansions if you are offering in-person classes and need to add space and a resulting rent cost.
- Define the number of weeks it takes to complete a given course.
The primary way that I structured all revenue is based on the number of courses that are completed per month. That will drive revenue and variable costs. Since courses may last a certain number of weeks that is not exactly lined up with month counts, I converted the input for how long a given course takes into courses per month. That allows for proper financial projections to be calculated monthly while considering all capacity, utilization, and class expansion assumptions for each of the three course types.
I made it very clear how each course type expands with visuals that show the total seats available, seats filled up, and utilization rate over time. Those charts and the data throughout the model will update as the assumptions about utilization for a class over time are updated. For example, you can start with 1 class, that offers 25 seats, and the class runs for 4 weeks. The model will let you define how many courses you sell per month based on the percentage of the 25 seats that are filled up over time and the price per course.
One important thing to note is that if it takes longer than a full month to complete a course (4.33 weeks on average) then the capacity attainment assumptions should account for that, meaning the change in utilization should change every 2 months in that case, so month 1 could be 20%, month 2 could be 20%, and then month 3 you may have an increase to 30% or what have you. That is because if it takes individuals longer then 1 month to complete the course, than the number of seats utilized should not go up every month, but every time the class has been completed and new seats are available to be filled. Since those assumptions are dynamic to the start month of each class, it will give you the most accurate numbers with that type of logic flow.
The model allows for capacity attainment to be achieved within the first 36 months of a new class being launched.
Types of Educational Courses / Classes You Could Use This Model For:
- Elder Tech Academy
Academic Courses:
- Mathematics (e.g., Algebra, Calculus)
- Sciences (e.g., Biology, Chemistry, Physics)
- Humanities (e.g., History, Literature, Philosophy)
- Social Sciences (e.g., Sociology, Psychology)
- Languages (e.g., Spanish, French, Mandarin)
Vocational & Technical Courses:
- Automotive Repair
- Carpentry & Woodworking
- Culinary Arts
- Welding
- Plumbing
Artistic Courses:
- Painting & Drawing
- Sculpture
- Dance (e.g., Ballet, Contemporary, Hip-hop)
- Music (e.g., Piano, Guitar, Vocal lessons)
- Drama & Theater Arts
Health & Fitness Courses:
- Yoga & Pilates
- Martial Arts (e.g., Karate, Taekwondo, Jiu-Jitsu)
- Personal Training & Fitness
- Nutrition & Dietetics
Business & Management Courses:
- Marketing
- Finance & Accounting
- Human Resources
- Project Management
- Entrepreneurship
Technology & IT Courses:
- Computer Programming (e.g., Python, Java)
- Web Development
- Data Science & Machine Learning
- Network Administration
- Cybersecurity
Personal Development & Hobby Courses:
- Photography
- Cooking & Baking
- Gardening
- DIY Crafts
- Creative Writing
Specialized Professional Courses:
- Real Estate Licensing
- Aviation & Pilot Training
- Scuba Diving Certification
- First Aid & CPR Training
Adult Education & Lifelong Learning:
- Basic Literacy
- GED Preparation
- Language Learning for Adults
- Financial Literacy & Retirement Planning
Cultural & Area Studies:
- Indigenous Studies
- Cultural Anthropology
- Religious Studies
- Regional Studies (e.g., African, Asian, Latin American studies)
Environment & Sustainability:
- Organic Farming
- Renewable Energy
- Conservation & Wildlife Management
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