Post: #1

Ok here we go.

One of my game goals was to launch a business idea I've had since the 12th grade. So this is it. Bear with me this is probably the most unprofessional business related jargon you will ever read...also happy to pop that cherry for you.

The business is private lessons for "X-sport." My question is on how to pay my employees and do right by them while maximizing my profit.

My employees are high school aged (14-18 yrs) kids whom I coach on my club team.

3 employees.

• Employees work 4 days a week for 2.5 hours each day.
• There are 5 sessions in a work day. Each session is 30 minutes long.
• Each session costs 25$
• $125/day=$500/week
• $500 x 4.2 weeks=$2,100/mo
• $2100 x 3 employees=$6300/mo
  

When I did this myself thoughout high school I was able to make somewhere in the range of 3k-4k (didn't keep track) in the 2.5-3 months of summer after school ended for summer break.


Heres how the numbers work out with the employee pay/session and their pay/mo:

• 12/session=1008/mo
• 11/session=924/mo
• 10/session=840/mo
• 9/session=756/mo
• 8/session=672/mo
  

total income with three employees.

• 12/sesh=3,276/mo
• 11/sesh=3,528/mo
• 10/sesh=3,780/mo
• 9/sesh=4,032/mo
• 8/sesh=4,284/mo
  

I feel like the $9-$10 per session is solid given what it yields them/mo and what it yeilds me considering they are only working for 2.5 hours/day 4days/week.
But I also see that they are getting paid an ass load considering the little work.
I have no idea what is fair and what is business savvy so some insight on how to go about this is appreciated.

If you need more information ask. Im pretty much winging it right now trying to make this work.

The lessons can be done at free neighborhood parks. All my employees have residential passes to the facilities they would need. If they needed to rent space I most costs would be @$10-15/hour. Like I said I'm winging it pretty much. Havent gotten to costs yet no do I know of the order of operations when setting up a business plan. I like making money so I started with that lol

Currently reading (by that I mean just started) "Business Model Generation" written by Alexander Osterwalder & Yves Pigneur

Post: #2

$25 / hour for and sort of service / training is very low in my opinion. Ask yourself who is paying for the product. (Hint: It's probably an adult)

Honestly I would think the rate per hour should be atleast double that especially if they are individual lessons. If they are group lessons then factor in how many people are in the group. It wouldn't be ridiculous to charge a group of 5 each $25 / hour.

If your business isn't scaleable and you have to pay your employees $8/ hour to gross 4,284 / month thats a questionable business, if it is scaleable then it has potential. With that said you have costs too. Not everything is profit unless your sport can be done in public areas. Even then you have transport costs, products, and potential liability issues which you will need to protect yourself against.

Post: #3

no no $25 per session is $25/half hour or $50/hour.

So everything thats written per session is actually "per 30 min." I'll edit that in

I also thought about what you said for the liability thing. I was thinking about having them register with my sports governing body as coaches. Of course I'll have to look into that and what that cost would be.

I just looked up scaleable and I would say yes. This was originally just myself from 8th-12th grade and I had the idea to multiply my product. So if this going from just myself to myself and 3 others is what scaleable means then yes its scalable.

Also of note when I did this myself back then I had zero rental costs. The only thing I payed for was gas to get to my friends neighborhood and use his facilities.