The Microschool Business Model: Tuition Math That Keeps You Open

Most microschools that close do not fail educationally. They fail arithmetically: tuition set by feel, a founder salary of zero, and an October discovery that the numbers never worked. The fix is an hour with a spreadsheet before you publish a price.

The model in four lines

1. Annual expenses. Rent, insurance, curriculum and supplies, software, and 10 percent contingency. Real numbers, from quotes, not hopes (what it costs to start has ranges).
2. Your salary. Write down the number you need, not zero. A school whose teacher cannot afford year two is a school that closes in year two. Even a modest $25,000-$35,000 belongs in the model from day one.
3. Realistic seats. Not your maximum; your likely September number. First-year schools commonly open with 6 to 9, not 12.
4. Tuition = (expenses + salary) / seats. Then compare against your local market and adjust the model, not just the price.

Example: $12,000 expenses + $30,000 salary = $42,000. At 8 students that is $5,250 each; at 12 it is $3,500. Notice what that teaches: your enrollment target is a pricing decision.

Pricing moves that work

• Price the schedule. A 4-day program at $6,000 reads differently than 5 days at $7,000. Many families prefer the 4-day school. Cheaper and better is a real combination here.
• Deposits are commitment. A $250-$500 non-refundable deposit converts "interested" into "enrolled" and finances your summer purchasing.
• Sibling discounts, yes; scholarships, carefully. One discounted seat in ten is generosity. Three is a budget hole. Decide the cap in advance.
• In ESA states, price with the award in view. If the local program pays roughly $7,000, a $6,500 tuition is a different conversation than $9,000. Families in Iowa and other funded states increasingly comparison-shop this way. Know your number: can you use ESA money explains the programs.

The two rules that keep schools alive

Collect tuition monthly in advance, never in arrears. And hold three months of expenses in reserve before you spend on anything optional. A family leaving at fall break should be sad, not existential.

Run the model, publish the price, and revisit every spring. Schools do not stay open on mission alone; they stay open on mission plus arithmetic.

This is general information, not financial advice.